RVA Delivery Wars: Competition Intensifies

Posted on by John W. Anderson, Marieke van Rijn in Commercial Real Estate, RVA Grocery and Delivery Wars

The Richmond Times Dispatch recently reported that grocery consumer behavior has shifted and is increasingly demanding online shopping and delivery options. Grocers who are not offering these options are likely missing out on business, but the question remains if that segment is large enough to cause stores to update or diversify their shopping methods and delivery options. Below is a summary of what grocery stores in the Richmond market are doing or not doing to address the changes in customer behavior.

Aldi: Delivers using Instacart; 9 am to 8 pm; $10 min. order, Instacart Express Membership, which costs $99 annually, eliminates delivery fee for orders of $35+; $3.99 to $9.99 delivery fee on all orders without Instacart Express Membership; $2 service fee, but varies; scheduled within the hour.

Ellwood Thompson: Does not deliver groceries.

Food Lion: Delivers using Instacart; $10 min. order, Instacart Express Membership, which costs $99 annually, eliminates delivery fee for orders of $35+; $3.99 to $9.99 on all orders delivery fee without Instacart Express Membership; $2 service fee, but varies; scheduled within the hour.

Fresh Market: Delivers using Instacart; 9 am to 9 pm; $10 min. order, Instacart Express Membership, which costs $99 annually, eliminates delivery fee for orders of $35+; $3.99 to $9.99 delivery fee on all orders without Instacart Express Membership; $2 service fee, but varies; scheduled within the hour.

Kroger: Delivers using Instacart; 9 am to 6 pm; $10 min. order, Instacart Express Membership, which costs $99 annually, eliminates delivery fee for orders of $35+; $3.99 to $9.99 delivery fee on all orders without Instacart Express Membership; $2 service fee, but varies; scheduled within the hour.

Libbie Market: Delivers using Rosie; 8 am to 8 pm; $50 min. order; $10 delivery fee; no service fee; scheduled within the hour.

Lidl: Delivers using Shipt; 8 am to 8 pm; $7 min. order, $35+ eliminates delivery fee; delivery fee also dependent on $49 annual membership fee; no service charge, scheduled within the hour.

Publix: Delivers using Instacart; 9 am to 10 pm; $10 min. order, Instacart Express Membership, which costs $99 annually, eliminates delivery fee for orders of $35+; $3.99 to $9.99 delivery fee on all orders without Instacart Express Membership; $2 service fee, but varies; scheduled within the hour.

Trader Joe's: Does not deliver groceries.

Walmart: Delivers using its own service (associates); 8 am to 8 pm; $30 min. order; $7.95 to $9.95 delivery fee; no service fee; scheduled within the hour.

Wegmans: Delivers using Instacart; 9 am to 10 pm; $10 min. order, Instacart Express Membership, which costs $99 annually, eliminates delivery fee for orders of $35+; $3.99 to $9.99 delivery fee on all orders without Instacart Express Membership; $2 service fee, but varies; scheduled within the hour.

Whole Foods: Delivers using Prime Now; 8am to 10pm; Amazon Prime membership required, which costs $119 annually; free 2-hour delivery; no minimum order requirement

Of course, Amazon continues to attempt to reign supreme over the grocery market. With its purchase of Whole Foods in August 2017 and the recent Wall Street Journal report that Amazon is in the market to acquire grocery store chains, it too will ramp up the competition as the segment of the population that demands grocery delivery and online shopping options continues to grow. Stay tuned!

About the Authors

John W. Anderson is a commercial real estate attorney who represents Virginia businesses and individuals. He assists his clients with a variety of commercial real estate matters and transactions (lender counsel, purchases, sales, leasing, tax-deferred exchanges, and development, as well as providing counsel regarding compliance with access provisions of the Americans with Disabilities Act), tax-deferred exchanges, and general corporate and business advice, including entity formation.

Marieke van Rijn practice focuses on commercial real estate and business transactions. Marieke assists clients in reviewing, drafting, and negotiating letters of intent, leases, purchase agreements, and easement agreements, for acquisition, leasing, and solar development transactions, as well as assisting clients with due diligence matters related to those transactions, including analysis of title and survey.

Spotts Fain publications are provided as an educational service and are not meant to be and should not be construed as legal advice. Readers with particular needs on specific issues should retain the services of competent counsel.