Instacart’s newly appointed CEO, Chris Rogers, is urging grocery retailers to adjust the amount they pay in physical stores to pricing online orders. Speaking at the Goldman Sachs Communacopia & Technology Conference, Rogers emphasized that affordability is an important factor in promoting the adoption of online grocery shopping.
“Affordable prices are probably the biggest unlock for online grocery adoption,” Rogers said, adding that price disparities will cause customer termination. He pointed out that parity in-store and online pricing can help keep shoppers on hold, according to Grocery Dive.
Instacart works with retail partners to develop pricing strategies, integrate loyalty programs, and drive weekly trading. Retailers who maintain parity in their grocery often outperform their competitors who add online markup, reported Grocery Dive.
Instacart’s data shows that retailers with consistent pricing are growing 10% points faster in the past year than people with higher online prices. According to the outlet, retention rates are also stronger during shopping with price sellers.
Several grocery stores are already in action. Schnuck Markets, Heritage Grocers Group and Lowe’s shifted to price parity earlier this year. Walmart Canada has lowered its online markup, while Costco is reducing price differences between US and Canadian same-day delivery sites.
It also expands its enterprise platform tools globally, increasing revenue through advertising and its consumer insights portal.
