In an effort to reach new customers, Raley’s is building upon its delivery options.
The West Sacramento-based grocery chain on Wednesday announced that it’s offering home delivery service through Instacart, a San Francisco-based company that serves thousands of cities, spanning the U.S. and Canada.
In 2017, Raley’s began offering same-day delivery through its own eCart program. That program, which uses drivers from local company FoodJets, will continue. The addition of Instacart is designed to complement the eCart program, according to Raley’s spokeswoman Chelsea Minor.
Instacart service is already available for a variety of other stores in the Sacramento area, ranging from the Sacramento Natural Foods Co-op to Sprouts Farmers Market, according to the company’s website.
“The demand from customers for delivery service has continued to steadily grow, and this partnership with Instacart will expand our services to reach more customers,” said Deirdre Zimmermann, chief customer experience officer for Raley’s, in a news release. “We are excited to bring Raley’s great products and competitive prices to Instacart’s loyal customers.”
Shoppers can select items using Instacart’s mobile app. Products can be delivered in as quickly as an hour, or customers can schedule a delivery up to five days in advance. There is a $10 minimum on Instacart orders, and the delivery fee is $3.99 for orders of $35 or more. Special promotions, such as a discount for first-time customers, are also offered.
Raley’s operates 129 stores under five brands. Instacart delivery will be available at 93 of the company’s locations in Northern California and Nevada, during regular business hours.
Increasingly, grocery chains are prioritizing e-commerce. A 2018 report from the Food Marketing Institute and Nielsen suggested 70% of consumers could be grocery shopping online by 2024.
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Eight percent of the members of Something Extra, the customer loyalty program at Raley’s, have tried the company’s eCart service, according to Minor. The eCart service includes pickup and delivery.
She declined to comment on the company’s monetary investment in e-commerce, but said Raley’s is expanding its delivery services “in multiple ways.” That includes a subscription-model wine club, for which more details will be shared in the future, Minor said.
She said geographically, the company’s delivery options serve most of its shoppers. Some areas are unserved, most of which are in Nevada, according to Minor.