Richmond Delivery Wars

Posted on in Commercial Real Estate, RVA Grocery and Delivery Wars

Richmond's rapidly growing and evolving grocery market continues to adapt to meet increasing demand and competition. As convenience has become the key focal point for grocers, a new competition within Richmond's grocery sector has emerged: Delivery Wars.

Kroger recently announced that it will partner with Uber to test home delivery for its ClickList customers from Richmond's Carytown and Stonebridge locations. The home delivery fee is $11.95, which includes the $4.95 ClickList fee. Kroger is also testing this delivery service in the Dallas market, and it hopes to expand the service to other areas. As of now, shoppers cannot order beer or wine through the ClickList service.

Amazon, however, has just expanded its Prime Now service in the Richmond market to include home delivery of beer and wine. In this regard, Amazon is one step ahead of Kroger. Amazon offers this service in other markets across the country.

Walmart, the nation's largest retailer, is preparing to go toe-to-toe with Amazon by offering free delivery to its online customers. 56% of Walmart's revenue is reportedly from grocery sales. While Walmart is the current undisputed "king" of bricks and mortar retail, Amazon is currently the undisputed "king" of e-commerce. Walmart recently acquired and plans to use its platform to build a more robust e-commerce system to combat the e-commerce status of Amazon.

Meanwhile, Oberweis Dairy, a Midwest operation, has expanded from its first East Coast foray in Hampton Roads in 2009 to the Richmond market and expects to begin home delivery of milk in the Richmond market this month.

In a related note and to carry convenience an additional step, Uber is now offering delivery of takeout meals from restaurants to your home in the Richmond area.

Convenience reigns in Richmond!

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