This week in grocery, supermarkets utilize contextual commerce, Wegmans accepts SNAP and IHOP taps CPG.
The Fresh Market, a supermarket chain based in North Carolina with 159 stores across 22 states, announced Thursday (Feb. 16) that it is expanding its partnership with video commerce solution provider Firework.
The two companies are now creating a retail media network featuring live, shoppable video content, such as recipes and tutorials on the grocer’s digital channels. The collaboration allows the supermarket chain to offer brands the ability to sponsor shoppable livestreams.
“Overall, the combined viewership of our first four Firework-powered livestreams exceeded 2 million views and we saw conversion rates of the special occasion meals featured in the shoppable videos to be over 300% greater than our traditional digital advertising results,” Kevin Miller, the grocer’s chief marketing officer, said in a statement. “Having proven the power of Firework’s video commerce content in 2022, we’re excited to offer our partners an innovative and differentiated means of storytelling in an entertaining new way.”
The grocer is not the only one leveraging video commerce to drive digital sales. Firework has also worked with grocery giant Albertsons on shoppable livestreams, and the United States’ leading grocer, Walmart, has a range of commerce-integrated videos and online activities.
Casual dining chain IHOP is getting into grocery with the launch of packaged coffee.
Food and beverage giant Kraft Heinz shared in prepared remarks Wednesday (Feb. 15) discussing the company’s fourth quarter 2022 financial results that it is launching a line of retail products in partnership with the breakfast chain.
“We are excited to announce a new multi-year partnership with IHOP,” CEO Miguel Patricio said. “In April, we’ll launch IHOP-branded coffee in retail — leveraging the scale and capabilities of our existing coffee business, and partnering with a fan favorite brand like IHOP, to reach new consumers.”
Based on an image featured in the accompanying slide show, it appears that the initial release of ground coffee options will feature a “Signature Blend” offering as well as flavors inspired by the restaurant’s menu items, including “Chocolate Chocolate Chip” and “Buttery Syrup.”
Launching packaged goods can provide restaurants with additional sales opportunities and a chance to extend their brand to more parts of consumers’ day-to-day lives, remaining top of mind for customers and building loyalty.
With grocers well aware of the drawbacks of relying on Instacart for eCommerce fulfillment, from the costly per-order commissions to the arguably even costlier loss of customer data, many smaller retailers have felt that there is no other option. While industry giants such as Walmart and Kroger have been building out their own same-day delivery capabilities, small and mid-size chains have not, for the most part, had the opportunity to do so.
However, independent grocer Heinen’s, which has 23 locations across Ohio and Illinois, is shouldering the cost of direct fulfillment. The retailer announced Wednesday (Feb. 15) that it is switching to fulfilling delivery and pickup orders in-house, pulling its stores from Instacart’s marketplace next Wednesday (Feb. 22).
The news suggests that direct fulfillment is no longer the exclusive purview of industry giants. Even smaller players are finding ways to bring eCommerce fulfillment in-house to retain the entirety of the sale, own the transaction and collect customer data.
Heinen’s is not the only chain expanding its direct eCommerce options. Regional grocery chain Wegmans Food Markets, which has 110 stores on the East Coast, announced Wednesday that it has begun accepting Electronic Benefits Transfer and Supplemental Nutrition Assistance Program (EBT SNAP) payments across its app and website.
The news comes 10 months after the grocer started accepting these payments via Instacart.
“Each week, thousands of Wegmans orders are placed on the Wegmans app and website, and we continue to hear from customers that it would be helpful to be able to use their SNAP benefits when placing an order,” Erica Tickle, Wegmans vice president of eCommerce, said in a statement. “Adding this functionality is an important step to further increase access to healthy food throughout the communities we serve.”
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