Grocery Delivery App Development: How These 3 Simple Strategies of Kroger Can Help Startups to Develop Successful Online Grocery Delivery Apps

Grocery-delivery-app-development

This blog is for grocery delivery startups and entrepreneurs, who want to create a successful on-demand grocery delivery app. Rounded up three simple and winning strategies by Kroger, which you need to consider during on-demand grocery delivery apps development.

As the technology is at its pace, it has dramatically changed many areas of our lives. If we’re talking about the grocery, technology has also changed the traditional way of shopping grocery from brick-and-mortar stores. “The pattern of grocery shopping has been changed during the next decades”, according to the report from Statista. And, it has switched to online. Thanks to grocery delivery apps!

More and more tech-savvy retailers now offer grocery options for their customers in the United States. The U.S online grocery sales amounted to 14.2 billion U.S. dollars in the year 2017 and it is expected to grow nearly 30 billion U.S. dollars by 2021, according to Statista.

US-online-grocery-devlivery-Chart

It also shows that people do not like hassles that generally come with “traditional grocery stores”, especially to stand in a queue to pay bills. Well, these hassles have broken up by the U.S.- based online grocery delivery companies, including AmazonFresh, FreshDirect, NetGrocer, Walmart, and Safeway.

There is also relatively a new & innovative online grocery delivery business model that is Instacart. Well, the San Francisco-based grocery delivery app, Instacart, delivers groceries through personal shoppers in 1 or 2 hours.

So, in the world of intensifying competition of groceries, there is a grocery giant, named as Kroger that you might have heard. Kroger has already won the grocery wars because of its partnerships and exceptional offerings.

  • According to the report from PR Newswire, “On 12th March 2018, the Kroger Co. has announced that it is expanding its partnership with Instacart in order to increase its customer delivery coverage area in 2018.” However, Kroger Delivery service, which partners with Instacart to home-deliver groceries to customers from local store locations within 2 hours.
  • Furthermore, according to the latest report from TechCrunch, “The Kroger Co. announced the launch of its new e-commerce grocery delivery service i.e. Kroger Ship, which will allow consumers to shop online for their Kroger brands and will get quick deliveries as the next day in certain areas.” The grocery giant, Kroger, has announced that it has launched Kroger Ship, which is direct-to-consumer e-commerce platform.

Grocery-App-like-KrogerImage Source: Kroger

Well, Kroger Ship is just a next step in creating a seamless experience, which allows its users to shop when they want. However, let’s not judge these updates, because Kroger is a very popular brand. Let’s know more about Kroger and its growth insights.

Kroger: A Successful Grocery Delivery Company

Founded in 1883, the Kroger Co. is based in Cincinnati, Ohio, and it spans many states with different store formats, including grocery & muti-department stores, convenience stores, and jewelry. Well, they operate under two dozen banners. In addition, ClickList is Kroger’s online-grocery ordering service.

  • Total Revenue and growth of Kroger: In this image, you can see the total revenue and growth of Kroger.

Kroger-App-Revenue-Growth

  • According to the report from SimilarWeb, “The grocery shopping app Kroger’s ClickList has ranked #12 in Google Play and its usage rank is #19.” This is what you can check in the image.

Kroger-App-SimilarWeb

  • According to the report from App Annie, you can check the Kroger app’s download rank.

Kroger-App-Annie
Now, let’s check out three strategies of Kroger app, which grocery startups can consider before developing a successful on-demand grocery delivery app.

3 Simple Strategies of Kroger App That Grocery Startups Need to Follow Before Developing a Successful Grocery Delivery App

1. Cut The Cost & Test With The Small Areas

One of the first winning strategies is startups need to cut the prices if they want to sustain and win the grocery war. Well, this winning strategy must be paid off in terms of sales and customer perception for your grocery business. In addition, through cutting the cost of grocery items and free delivery, you can gain trust from your customers. However, this strategy can help you to compete with your rivals.

According to the quarterly report from Kroger, “In the first quarter of 2018, the Kroger reportedly earns $2.0 billion. The net earnings for the first quarter 2017 were $303 million. The adjusted net earnings for the second quarter of 2017 were $546 million.”

Kroger-AppImage Source: Kroger

In order to remain competitive and dominance in the grocery sector, it is important to have effective strategies. On the other hand, grocery startups also need to start their business by testing the small areas or a few cities rather than covering the entire states.

For instance, Kroger Ship is going to launch in four cities across the Midwest and South of the United States. And, it just covers small areas. And, Kroger Ship will offer free deliveries for all purchases and give 15% off customers’ first orders with a one-time. The bottom line is that you as a grocery startup need to follow this strategy as a weapon to grow your online grocery delivery business like Kroger.

2. Proven Innovative Ideas Can Work

The next important thing, which you need to know is that the customer-centric approach and products make Kroger stands out from other competitors. When there was time for traditional grocery shopping, which is called ‘brick-and-mortar groceries, Kroger has joined the crowded online grocery delivery space and won it.

In 2016, the National Retail Federation named Kroger as the third largest retailer in the world behind Walmart and Costco. Now, you might be thinking that how can you stand apart by following this winning strategy? The answer is that proven and innovative ideas can help your online grocery business to win your customers’ heart.

Kroger-App-1Image Source: kroger

Undoubtedly, Kroger has always been on something to excel in the grocery market. From organic & healthy foods to implementing new strategies like same-day delivery, order in advance and enabling order medicines, too. Well, Kroger is all about implementing and keep maintaining innovative ideas in order to provide customers something different, so they would not prefer any other store over Kroger. It has actually become the one-stop store for all consumers’ needs.

3. Enhance The Customer Experience

When it comes to on-demand, then this word is usually associated with seamless customer experience, so that you as a grocery startup need to find out ways to enhance your app users’ experience. It is important that offerings should not just look impressive, but they actually can work and impress your app users.

Kroger-App-2
Image Source: Kroger

To make things more productive, you can provide the benefits and nutritional details of each product along with its description. As this makes users understand well about the product, and get a deep understanding before purchasing one. In addition, coupons and reward points can also help to enhance your customers’ experience.

On a Concluding Note,

The mainstay of your grocery business depends on how your customers feel about the service, which is provided by you. Before planning to build a grocery app for your startup business, you just need to consider these strategies, which can help your online grocery business to flourish and stand out from your rivals.

In this rapidly growing world of on-demand, there are no signs of slowing down in the growth of online grocery services. To become a future winner in grocery delivery, you just need to keep an eye on the winning strategies.

So, if you have an idea on developing Android app under the category grocery delivery, then you can cross-verify it with us as we are a leading mobile app development company and have already developed one of the successful grocery delivery apps named Glovo. Considering exclusive features and functionalities like GPS tracking, cross-platform ability, image gallery and in-app payment, our team of mobile app experts make grocery shopping app successful. In case, if you have any query like:

  • What is the importance of building an MVP (Minimum Viable Product) of an Uber delivery app?
  • What would be the complete development cost of an app for grocery delivery?

Then, you can get in touch with us through our contact us form. One of our sales representatives will revert to you within 16 hours. The consultation is absolutely free of cost!

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This page was last edited on November 17th, 2018, at 1:40.
 
 

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