Grocery Industry Cases, Items 1 to 49
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- The market reacts to Amazon’s move into online groceries, by , Internet Retailer, 6-30-2006 Amazon is now selling 12 categories of nonperishable goods. Compares regional strengths of FreshDirect in NYC and Peapod. Neither expected Amazon's entry to affect their sales.
- Peapod expands its East Coast market, by , Internet Retailer, 8-24-2005 Peapod, with Stop & Shop Supermarket, a subsidiary of Royal Ahold N.V., is expanding in New York and Connecticut communities, using Stop & Shop as the store base and source of customer lists.
- Online Grocer Takes A Fresh Approach To Technology, by Darrell Dunn, Internet Week, 1-13-2005 Explains how online grocer FreshDirect has found success where many have failed: by emulating the E-commerce success of Amazon.com, the just-in-time manufacturing capabilities of Dell, and the distribution expertise of FedEx.
- Why web grocers are playing it cool, by , Internet Retailer, 10-1-2004 Describes refrigeration systems used for storage and packaging by FreshDirect.com and Peapod.com.
- Albertsons.com expands into Sacramento, by , Internet Retailer, 6-28-2004 Albertsons.com, the online grocery store of Albertsons Inc., has expanded into Sacramento, and now serves ten major metropolitan areas in CA, NV, WA, OR, ID, TX, and PA. Online orders placed by midnight will be delivered by 10 am the following day for $9.95. Orders placed by 10 am can be picked up at selected stores after 5 pm for $4.95.
- Online grocery sales rise 40% in 2003 over ’02, study estimates, by , Internet Retailer, 3-5-2004 A study by Michigan State University sees that improved customer service is causing growth in online sales of food and beverages. 2003 sales were up 40% from 2002. Online grocery customers cited convenience as the most important reasons they buy online, vs. store shoppers who site price as their prime motivator.
- FreshDirect: Ready To Deliver, by Larry Dignan, Baseline Magazine, 2-17-2004 Looks at online grocer FreshDirect's operations and expansion strategy. The company hopes buying on the cheap, local focus and off-the-shelf technology will help it avoid Webvan's fate.
- Web Delivers for Safeway, by Mark Calvey, San Francisco Business Times, 11-24-2003 Safeway's online grocery business is burgeoning since it turned to personal shoppers trolling store aisles. Says "The warehouse model didn't work because you could never achieve the needed economies of scale."
- Safeway Set to Offer Online Home Delivery, by Monica Soto, Seattle Times, 7-17-2003 Tells how grocer Safeway's new online grocery-delivery service to 34 cities in the Seattle metropolitan area differs from profitability problems of HomeGrocer and Webvan: it won't require a large up-front investment. Inclement Seattle weather helps, too.
- Online grocery showing fortified strength, study says, by , Internet Retailer, 7-2-2003 In a Michigan State study of the online grocery industry, Kenneth K. Boyer notes that online grocery sales have grown 40% since 2000, while overall grocery sales have remained flat. Notes strong loyalty to online grocery stores, "After decades of pushing price in huge supermarkets, these home-delivery grocers are offering customers a return to an old concept: grocery shopping where the retailer values them, offers valuable service and not just a commodity product, and, most impo
- Smarter online merchandising boosts Peapod’s average order, by , Internet Retailer, 6-12-2003 The average order at online grocer Peapod.com has grown from $106 to $143 in 3 years, partly due to better merchandising, such as virtual "endcaps," reducing out-of-stocks, customer focus, incentives to shift deliver windows.
- Smarter online merchandising boosts Peapod’s average order, by , Internet Retailer, 6-12-2003 Online grocer Peapod's average order grew from $106 to $143 in 3 years due to better merchandising (such as "virtual endcaps), reducing out-of-stock merchandise, and a strong customer service focus.
- Online Grocers: Finally Delivering the Lettuce, by Louise Lee, Business Week, 4-28-2003 Tells how old-line brick-and-mortar grocery chains are introducing online grocery service one city at a time, rather than the huge marketing, warehousing and other expenses incurred by most of the original players such as Webvan.
- Lessons From Online Groceries, by Caroline Ellis, MIT Sloan Management Review, 1-1-2003 Says survey evidence clearly shows that successful online retailers strike a balance between their range of offerings and the ease of fulfillment, among other factors. Looks at Webvan's failure, Britain's Tesco's success.
- The Online Grocer Version 2.0, by David Kirkpatrick, Fortune Magazine, 11-10-2002 Forget Webvan, say the founders of FreshDirect. Their business is about food--and that's why they're sure it's going to succeed. The company concentrates on impeccably fresh perishable foods because that's what they have learned consumers want.
- Does Online Grocer Ocado Have a Chance to Succeed?, by The Economist, Ebusiness Forum, 11-21-2002 Reviews business of Britain's newest online grocery-retailer, Ocado. The company claims that warehouse deliveries are faster and more accurate, citing 99% of its deliveries arriving on time, and that free delivery on big orders is profitable.
- Safeway.com finds growth formula that eluded Webvan, by , Internet Retailer, 11-14-2002 Discusses Safeway's slow development strategy that now has online grocery sales in 320 communities in Washington, Oregon, and California. It uses GroceryWorks as its system operator, whose professional "pickers" read web orders from a wireless screen attached to their carts and networked to corporate computers.
- Peapod extends summer test of online grocery shopping on Cape Cod, by , Internet Retailer, 9-5-2002 Peapod’s summer test of online grocery services for Stop & Shop in Cape Cod went so well the company is extending service through October 14 to see if demand continues. May offer service only in summer.
- The Rebirth of the Online Grocery, by Jennifer LeClaire, E-Commerce Times, 8-6-2002 Update on online grocery services, which are making a surprising comeback following the notorious failure of giant operators Webvan and Peapod. Discusses Albertson's and Safeway, which have adopted slow but steady approaches to online sales.
- Ordering Groceries in Aisle 'www', by Terry Pristin, New York Times, 5-4-2002 Internet grocery shopping is quietly making a comeback, but it follows a local service and fulfillment model rather than the nationwide distribution approach that failed for Webvan and others. Examples in the NY area include D'Agostino and Gristede's.
- Internet grocer SimonDelivers.com plans expansion, by , Internet Retailer, 4-10-2002 SimonDelivers.com is expanding from Minneapolis/St. Paul using the same model of one-step distribution and controlled route delivery that’s made it profitable. The company cuts out middleman brokers wherever possible to supply its warehouse directly from farmers. It doesn't offer "on demand" delivery schedules.
- Albertson`s expands its online grocery service to Oregon, by , InternetRetailer.com, 3-4-2002 Albertsons.com is expanding its grocery home shopping from Seattle to San Diego, to Southern California, and now to Oregon and Washington. It charges $9.95 for delivery and $4.95 for pick-up.
- Why Peapod Is Thriving: First-Failure Advantage, by John Frederick Moore, eCompany, 8-14-2001 Says online grocer Peapod's purchase by bricks-and-mortar Dutch grocer Ahold rescued it from extinction. Cites use of Ahold's stores for inventory, reduced marketing costs, better targeting and cash infusion for its turnaround.
- The Value of Thinking Small, by Sean Donahue, Business 2.0, 7-10-2001 "Changing consumer behavior is not as easy as we thought," says Webvan Group CEO Robert Swan. Author says Webvan's downfall was precipitated by the big scope of its initial ambition, entering seven cities at once instead of testing the concept.
- Woe without Webvan? Where to find other online grocers, by C.C. Holland, ZDNet AnchorDesk, 7-13-2001 User bemoans the death of Webvan. Brief profiles on surviving grocery delivery stores: Peapod, NetGrocer, and others. Notes that another grocer, HomeRuns.com ceased operation on July 12, 2001.
- This Online Grocer Hits the Spot, by Amy Borrus, Business Week, 6-1-2001 Reports that privately held HomeRuns.com based in Massachusetts is easy to use, is reasonably stocked and priced, and even delivers on time, despite some weaknesses such as sometimes-slow Web site.
- Lessons for the 'New Economy', by Stanley H. Brown, Electronic Business Online, 5-1-2001 Addresses the "learning curve" in trying to create new technology-based versions of existing businesses. Gives example of online groceries, says costs are higher than serving walk-in customers in stores because of too few customers.
- Why Online Grocers Won't All Go Hungry, by Jane Black, Business Week, 5-14-2001 Says pure-play Web shops may not rule this market, but the concept of cyber-shopping for food and such is definitely taking hold as every major US grocery chain is said to be testing online shopping in at least one major market.
- Where Cybergrocers Smell Success, by Gaëlle Macke, Business Week, 4-11-2001 Contrary to what is happening in the US, France's online food retailers are growing exponentially. Their distinction is that all five successful online grocers in France are actual subsidiaries of traditional food and product retailers.
- Online Grocery Buying Slowly Catching On - Study, by Michael Bartlett, Newsbytes, 3-21-2001 A study of 8,000 web users by Gomez Inc. found that 22% had purchased groceries online, but only 11% in the past 3 months. Consumers cited convenience and familiarity as the reasons to purchase groceries online.
- E-Grocers: Express Lane To Oblivion, by Paul A. Greenberg, E-Commerce Times, 2-21-2001 The jury is still out on whether online grocers will ever succeed. Pure dotcom efforts such as Webvan and PeaPod are struggling to survive. The apparently insurmountable roadblock: nobody in America is home to take delivery. Likely survivors are brick-and -click operators Safeway and Kroger.
- Web Delivery Services in Crisis, by Lori Enos, E-Commerce Times, 2-20-2001 Analysis of the challenges faced by Web grocery and delivery services Webvan and Kozmo: the cost of warehousing huge inventories inefficiently, consumer resistance to online ordering for goods typically purchased on the spur of the moment, competition from local brick-and-click operators, and too-rapid expansion.
- How to Make Lunch an Adventure, by David Corcoran, New York Times, 12-13-2000 Even in mid-town Manhattan, it isn't easy to buy food online and get it delivered. A consumer perspective on the process as played out via Kozmo.com, Food.com, and Waiter.com.
- Stop & Shop: An Earthbound Grocer Stocks Its Virtual Aisles, by Kevin Ferguson, Business Week e.Biz, 9-26-2000 Describes 85-year old grocer's attempts to succeed in the Web shopping and home delivery market. Company believes mix of real-world supermarkets and e-commerce will lead to success, with parent's acquisition of 51% of Peapod, online since 1990.
- Mom-and-Pop E-shops, by , PC Magazine, 7-12-2000 Brief mention of MyWebGrocer.com that sets up and maintains websites for smaller grocery markets in return for a% of each transaction. Allows smaller grocery markets to hang on to customers.
- George Shaheen: Driving Webvan through the Dot-Com Lean Times, by Timothy Mullaney, Business Week e.Biz, 7-19-2000 Reviews Webvan's strategy as it absorbs the operations of HomeGrocer, the online grocery delivery competitor it merged with in June, 2000. Profits anticipated from personalized marketing based on data mining and focus on cost savings.
- Webvan Takes a Wrong Turn, by Keith Regan, E-Commerce Times, 6-9-2000 Opinion and analysis of Webvan's aggressive expansion plans, adding an array of consumer electronics goods as well as books and video to the quick-delivery groceries model. Author says that Webvan is spreading itself too thin in a quest to rival Amazon.
- Survey: Shoppers Cool to Net Grocers, by Lori Enos, E-Commerce Times, 5-5-2000 Bad news for online grocers, from a study by PriceWaterhouseCoopers. Only 18% of Internet users have any interest in online grocery shopping. Existing web grocers such as Peapod and Webvan have very low visibility, even among online shoppers.
- Report: Net Grocers Will Succeed Despite Pitfalls, by Lori Enos, E-Commerce Times, 5-17-2000 Although the way forward 'will be littered with bankrupt companies and broken hearts,' a study by IDC says that online groceries will eventually succeed. Spending will grow from $200 million (US) in 1999 to more than $8 billion by 2004. Infrastructure and customer acquisition costs will be very high. Growth will be strongest in prepared foods and convenience services, rather than traditional groceries.
- Who's Eating Whose Lunch?, by David Gumpert, ClickZ, 12-28-1999 Internet grocery ventures like Webvan and Streamline appear to depend entirely on selling the proposition of ordering groceries online for home delivery to consumers. But their biggest returns may come from the value of the data they collect from shoppers .
- Grocery Wars Heat Up, by Connie Guglielmo and Edward Cone, Inter@ctive Week, 9-24-1999 Priceline.com has introduced a grocery shopping service called WebHouse Club, to compete with online grocery megastore WebVan. Both services face big challenges: WebHouse is saddled with a complex user experience, WebVan must build a huge infrastructure of warehouses.
- Let Someone Else Bring Home the Bacon, by Liz Enbysk, ZDNet AnchorDesk, 5-25-1999 Examination of HomeGrocer.com. Lists advantages and disadvantages, but believes reasonable prices (though not loss leaders found in supermarkets) and delivery will save time -- which is quite attractive.
- Price Hike Keeps NetGrocer Alive, by Polly Sprenger, Wired News, 2-18-1999 Coming back from massive layoffs, NetGrocer raised prices from $2.99 to $5.99 for orders under $60. Larger orders cost more for deliver in the West than in the East. Owners claim number of customers continues to increase.
- Online Grocer Battle Wages On, by , ChannelSeven, 12-7-1998 Summarizes surveys showing consumer willingness to pay for grocery delivery. Then compares and contrasts business plans from Peapod and YourGrocer.com
- Online Shopping: Food and Consumer Staples Focus on Peapod, Inc., by Doug Simpson, net nuggets: thoughts on Ecommerce, Contains summaries of news stories on Peapod, and links to resources on online grocery shopping.
- Don't Be Fooled by the Online Grocery Store Hype, by Annette Hamilton, ZDNet AnchorDesk, 10-2-1998 Cites a Forrester report that the online grocery business is likely to remain small due to: (1) relative market share, (2) lack of demand, (3) delivery fee resistance, and (4) psychological resistance.
- Making e-commerce part of everyday life, by David S. Klein, NetMarketing, 4-1-1998 Analysis of Peapod's grocery shopping service indicates that e-tailers should: 1) use the telephone to keep in touch with customers, 2) upsell to people willing to pay for extra service, and 3) keep in constant communication to prevent constant churning o
- How to survive a shift in Web hosts, by Barry Klein, NetMarketing, 12-1-1996
- Will Shoppers Take to Cyber Groceries?, by Robert D. Hoff, Business Week, 2-12-1998 Discusses chances of success of grocery shopping via the Net.
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