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eFood Markets

Digital Grocers on the Move . . . Again

Dr. Ralph Ofcarcik, Ph.D.
Director of Nutrition Services

Tad Trublood, a local St. George writer, described the internet as one of mankind’s greatest innovations. Truer words were never written. Who would have imagined – 20 years ago (Gates and Allen excluded) – that a World Wide Web would emerge, impacting all of us, and at every facet of our lives – work, home, recreation, etc. Online, we can trade stocks on the world’s exchanges; plan vacations; bank; deploy the full potential of the National Library of Medicine; play; take college-credit classes; communicate with old friends; share opinions with people of likeminded political, scientific, or personal persuasion; and bare our souls on a personal blog. Weblife, some say, is a universal paradigm of the 21st century.

To suggest that electronic communication has shrunk our Mother (Earth) is an understatement. Six months ago, I was developing a presentation on advances in the genomic sciences. Being that Professor Sir Alec Jeffreys is credited with the invention of DNA fingerprinting, I sent him an email requesting use of his photo. Five minutes later, direct from Sir Alec’s computer at the University of Leicester in England (and 6000 miles away), I got my answer: “Yes, that’s fine! Alec”. The world has become decisively smaller, more readily accessible, and is as close as our monitors.

To a great degree, the Web’s success can be attributed to convenience. We buy and send gifts from our favorite retailer, send flowers, even check a PDF owner’s manual for an outdated appliance. Now, you can even avoid the weekly hassle of grocery shopping by ordering online from Albertson’s, Safeway, NetGrocer, and others. Depending on where you live, your order could be delivered within a day.

eGrocers are not new to the World Wide Web. Amidst the stampede of the 90’s, when techno high rollers were hustling to exploit the seemingly limitless potential of digital retailing, food was always regarded as the big kahuna. Unfortunately, big investments could not counteract even bigger mistakes . For example, many investors incorrectly assumed that at-home grocery shopping would appeal to those wishing to bypass the drudgery (and exertion) of driving to and from the market, not to mention maneuvering a weighted cart around dozens of isles and frenzied shoppers. In reality, most consumers were not at all adverse to ritualistic shopping at their local brick-and-mortar facility, some even liked to shop. To most, internet markets were foreseen as a way to save time – a promise that, unfortunately, went unfulfilled. If you can recall Windows 3.1 and dial-up connections (the norm in1995), you most likely remember the frustrating snail’s pace of downloading. For an online shopper, the 5-minute wait to view a jpeg of that day’s in-stock Romaine was simply not worth the hassle. Internet technology, then, was not up to speed, literally.

Another perceptual error made by yesterday’s wanabe egrocers was assuming that everyone has an aversion to grocery shopping. Not so. Some find pleasure in squeezing bread, smelling herbs, and actively participating in the gathering process (not unlike early cave dwellers returning from a successful hunt). In addition, some consumers are not enthralled at having their food selected and handled by others. As a consequence of the slow, impersonal aspects of online shopping, emarkets of yesteryear fizzled, leaving in their wake dozens of empty gargantuan warehouses.

Within the past 2 years, however, the digital grocery industry has re-awakened after a decade of economic instability. Online ordering is faster, product quality and availability has improved (like dramatically), and food prices (with delivery charges) total little more than what you would expect to pay at a neighborhood supermarket (plan on an extra $4-10 per delivery). Although currently not a threat to your neighborhood Kroger’s, Piggly Wiggly, or Von’s (last year, online grocers grossed 0.6% of the total U.S. retail food sales), it is a viable 3½ billion dollar per year business, and growing. At the current rate, egrocers should expect to double their sales within the next 3-4 years.

Unlike some local restaurants (pizzerias, for instance), deliveries will normally not occur within the hour. Online orders in a few major metropolitan areas such as Minneapolis/St. Paul (serviced by SimonDelivers), the Big Apple (serviced by FreshDirect), or Chicago (serviced by Peapod), will usually be brought to your door within 24 hours. However, deliveries to smaller cities may take up to a week, possibly longer.

If you frequently find yourself with so much to do and with so little time (the norm in 2005), online grocery shopping may buy a few extra precious hours each week. And with a now smarter, more focused, and competitive industry, do expect to see faster, more improved service and greater product availability – all modestly priced. A list of the major online grocers is included for your consideration: