Grocery Roundup: Instacart Launches Family Carts for Subscribers; Sprouts Taps B2B Wholesale Marketplace

In a move to compete with grocers’ direct delivery offerings, Instacart has announced a new subscription service, Instacart+, an updated version of its previous Instacart Express program with a new focus on family shopping.

On Wednesday (June 15), the grocery aggregator announced the launch of the new program, offering Family Accounts that can be shared with one other person for no added cost and Family Carts with which different household members can add items to the same cart.

“With today’s launch, we’re making Instacart+ the most cost-effective way for families to buy groceries and essentials with Instacart, delivered in as fast as 30 minutes,” Instacart Head of Product Daniel Danker said in a statement. “In addition to free delivery on orders over $35, credit back on Pickup and reduced service fees, subscribers can now share Instacart+ with another person for free, and shop together to make ordering truly effortless.”

The May edition of PYMNTS’ Subscription Commerce Conversion Index, created in collaboration with subscription eCommerce platform sticky.io, which draws from a census-balanced survey of more than 1,900 U.S. adults earlier this year, found that 56% of consumers would be interested in a grocery subscription if product prices were lower. The same survey also found that 71% of consumers reported noticing that inflation had impacted their grocery costs.

Read more: Inflation Prompts 10x Increase in Consumers Reevaluating Subscription Value

Sprouts Taps Distribution Solution to Ameliorate Out-of-Stocks

As supply chain issues cause widespread inventory challenges for grocers, Arizona-based grocer Sprouts Farmers Market, which has about 380 stores across 23 states, is looking to improve its logistics.

On Thursday (June 16), Pod Foods, which offers a wholesale marketplace to connect grocers and emerging consumer-packaged goods (CPG) brands, announced it will add Sprouts Farmers Market to its distribution channel, providing its stores insight about trending products and items that are available in a short time frame.

“Traditional distributors are unable to match the speed of our placement process, and both national and regional chains across the US have taken notice,” Larissa Russell, co-founder and CEO of Pod Foods, said in a statement. “As consumer preferences continue to drive product demand and retailers look to new strategies to keep shelves stocked, Pod Foods is the catalyst driving a new wave of procurement, customization, and customer satisfaction.”

These concerns are top-of-mind for many grocery shoppers. According to data from PYMNTS’ January study “Decoding Customer Affinity: The Customer Loyalty to Merchants Survey 2022,” created in collaboration with Toshiba Global Commerce Solutions, which drew from the results of a survey of more than 2,000 United States consumers, 51% of shoppers say that ensuring that the grocery products they want are in stock and available for purchase is key to their continued patronage of a given merchant.

Get the report: The Customer Loyalty to Merchants Survey 2022

Stocked shelves can be a key differentiator for today’s grocers, as Chieh Huang, CEO of membership-free wholesale eTailer Boxed, said in an April interview with PYMNTS.

“Right now, given supply chain constraints, I think the ability to be in stock, the ability to deliver your entire basket on time and in full [is key],” Huang said. “It’s something that sounds so simple, but because of supply chain constraints, because of inventory management technology issues with a lot of the legacy brick-and-mortar grocers, it’s easier said than done. And I think just simply being on time in full can really help you stand out.”

See also: Boxed CEO: Inventory Management Is Key to Winning Over eGrocery Customers

Ikea Trials In-Store Vertical Farming at 3 Locations in Germany

As food sellers target consumers’ changing food preferences, Ikea is looking to woo sustainability-concerned grocery shoppers with products vertically farmed in its stores. On Tuesday (June 14), vertical farming company announced a partnership with the furniture retailer to bring vertical farms to three of the Ikea stores in Germany.

“Infarm’s concept convinced us because we can make the topics of sustainability and healthy eating tangible for our employees and customers in a prominent place in our furniture stores,” Tanja Schramm, country food manager at Ikea Germany, said in a statement. “As part of our People & Planet Positive strategy, we aim to inspire and empower people to lead healthier, more sustainable lives. That’s why we’re increasingly focusing on plant-based foods and dishes with a lower environmental impact and at a price that everyone can afford.”

A range of major retailers are getting into vertical farming. For instance, Walmart, the world’s largest grocer, which announced in January that it has invested an undisclosed amount in South San Francisco, California-based vertical farming startup Plenty.

Related: Walmart Backs Vertical Farming Startup in Bid for ESG-Conscious Consumers’ Loyalty

“We believe Plenty is a proven leader in a new era of agriculture, one that offers pesticide-free, peak-flavor produce to shoppers every day of the year,” Walmart U.S. Chief Merchandising Officer Charles Redfield said in a statement at the time.