Notes and Thoughts on Grocery 2.0

On Wednesday, August 5, 2009, Stripes Group completed a $13 million equity investment in MyWebGrocer Inc., a rapidly growing and profitable Colchester, VT‐based software‐as‐a‐service company providing leading regional and national grocery store chains and consumer packaged goods companies with online commerce and digital media services. As part of their unique platform, MyWebGrocer operates the nation’s largest grocery ad network with over 4 million monthly shoppers.

DanMarriott, Managing Partner of Stripes Group, will be joining the MyWebGrocer Board of Directors.

About Stripes Group:

Stripes Group, founded in 2003 and based in New York, is a private investment firm focused on growth stage minority and majority investments in rapidly growing and profitable internet, software‐as‐a‐service, technology‐enabled services and consumer products companies. Stripes Group typically partners with founder‐owned and operated companies that have had no prior institutional investors.  For more information on Stripes Group, visit www.stripesgroup.com.

About MyWebGrocer, Inc.:
MyWebGrocer, founded in 1999 and based in Colchester, VT, is a founder‐owned and managed software‐as‐a‐service company providing online commerce, communications and digital media services to leading grocery store chains and consumer packaged goods companies while also operating the nation’s largest grocery ad network. MyWebGrocer has been profitable nearly since inception and has established itself as the leader in the industry with over 5,000 grocery stores nationwide using their platform and over 60 globally recognized brands, including Kelloggs, Unilever, Nestle and P&G, reaching 4 million monthly shoppers on their industry‐leading grocery ad network.

A recent story on “This Week.com” highlighted MyWebGrocer’s client Buehler’s Fresh Foods for their online grocery shopping service.

A new location in Delaware is now offering the online shopping service and it has been more than well received:

Photo By By Ann Tormet/ThisWeek courtesy of ThisWeek.com

“As she loads groceries, Vance said she is often thanked by the customer.

‘They love it,’ Vance said. ‘They don’t like shopping.’

‘I had a lady who came in the other night all the way from Westerville,’ Conley added.

The first shopping experience is free, said Deb McKee, service and facilities manager of the Delaware Buehler’s. After that, the cost is $7.95 per order or $24.95 for unlimited shopping within a 30-day period.”

Finish the full story here

A recent study performed by the Carnegie Mellon Green Design Institute found, “e-commerce reduces the environmental impact of shopping by using about a third less energy than traditional retail — but only if you skip the express airmail.” The Wall Street Journal wrote a piece regarding this study and stated, “E-commerce not only uses less energy, but its carbon footprint is also a third smaller than bricks-and-mortar retail, the scientists found.”

Online shopping decreases the amount of driving that takes place (to and from stores). Take online grocery for example…you log on in the morning, order your groceries, and have your significant other/friend swing by your store on the way back home for work to pick them up.

Not only easy but online grocery is green!

If you and your family have made some changes to reduce your carbon footprint…try online shopping!

Cheers!
Courtney

I was reading Seth Godin’s blog post this morning and found it very interesting.  It’s titled “Three things you need if you want more customers”.  There’s only three things?  I thought to myself.  Every business wants to grow and in this market today it can be rather difficult.  Here are the three things according to Seth,

1.) A group of possible customers you can identify and reach.

2.) A group with a problem they want to solve using your solution

3.) A group with the desire and ability to spend money to solve that problem.

Does your business meet all three expectations?  It is important to outline who your main target is and once you have them…retaining them comes next.

Take online grocery shopping as an example.  There is a group of possible customers (busy parents, both working couple, single moms/dads).  They have a problem and can use online grocery shopping as their solution (no time…order online) and with desire they have the ability to spend money to solve their problem (time is going up in value).

As you create new ideas for a business keep these three items in mind…they can really help in the log run.

(read more at Seth Godin’s blog here)

Cheers!

Courtney

I’ve been reading a number of survey results from many of the organizations and news mags that track grocery retail. The surveys are very telling and of interest to grocery retailers and suppliers alike, especially these days. How better to find out what customers and potential customers want than to ask, right?

So, when asked “what are the things you look for when choosing a supermarket?” Price is on the list of course, but it’s not as cut and dry as that. Convenience was still high on the list. So is customer service. To sum it up, what do consumers want from their grocery store? Fresh food at good prices that are easy to buy while I’m greeted with a smile.

Retailers with a comprehensive approach using Best Practices to deliver these expectations will win the battle for consumers. Best practices are the sweet spot of an eGrocery program.

Provide consumers with the convenience of online grocery shopping. Display your online circular and sale prices in a way that allows them to add sale items directly to their cart. Provide the best in customer service by training your employees to be your customer’s personal shopper, providing best practices of successful programs.

You’ll win the battle to maintain customer loyalty, boost your conversion rates, and increase basket size.

Dave Dec