Grocers Look To Online Subscriptions To Lock In Digital Demand

As retailers eye new ways of locking in loyalty among a consumer base that has dramatically shifted to digital shopping, many are looking to membership programs that offer unlimited delivery or pickup for a fixed fee.

Kroger and Albertsons are both offering unlimited-delivery subscriptions, while SpartanNash has a pickup program that offers no-fee fulfillment for just under $50 a year. Last week, Ahold Delhaize announced it will launch a subscription program with The Giant Company, its Carlisle, Pennsylvania-based banner, starting next year.

These programs promise to secure loyalty among consumers that are spending on average $95 per order, according to Brick Meets Click. They’re also a competitive response to Amazon, which is offering steep discounts through its Prime program as it flexes its muscles in grocery, as well as Walmart, which earlier this year rolled out Walmart+, a membership program that offers mobile scan-and-go and fuel discounts in addition to unlimited no-fee delivery.

"The industry is getting pushed in this direction," said James McCann, a former CEO of Ahold USA who now serves as an investor and advisor to companies like Takeoff Technologies and Afresh. "I think it's going to become a big part of the game plan at all the major grocers."

Kroger’s $79 annual subscription program, Delivery Savings Pass, waives the $10 delivery fee the company normally charges for delivery, but applies only to orders of $35 or more. The program is currently being tested at Kroger stores in Dallas and at Ralphs locations in the Los Angeles area.