Trader Joe’s reveals why it won’t offer grocery pickup and delivery
- Trader Joe’s marketing executives said the company would not offer roadside grocery pick-up or delivery, despite increasing demand for these services.
- “Creating an online roadside collection system or infrastructure for delivery is a daunting undertaking,” said Matt Sloan, vice president of marketing for Trader Joe.
- He said the company would rather focus its investments on employees than on online food services.
- You can find more stories on the Business Insider homepage.
Trader Joe’s has no plans to offer grocery pickup and delivery despite increasing demand for online grocery services amid the pandemic, the chain said.
“Customers are asking if we would like to offer delivery or roadside collection under the current circumstances,” said Tara Miller, director of marketing at Trader Joe, on a recent episode of the company’s Inside Trader Joe’s podcast. “We understand the impulse and know that some other retailers are offering these services. We also know that these offers don’t always produce positive results.”
Miller and Matt Sloan, vice president of marketing at Trader Joe, said the cost of building online grocery services is too high and the infrastructure for such a business “eliminates the need for people.”
“Creating an online shopping system for roadside collection or the infrastructure for delivery is a daunting undertaking,” Sloan said. “It takes months or years to plan, build and implement, and requires enormous resources.”
Sloan added, “Well, at Trader Joe’s, the reality is that for the past several decades we’ve invested these resources in our people, rather than building an infrastructure that eliminates the need for people.”
—Lynn (@nymeca) April 14, 2020
Miller added, “As other retailers downsized and added things like self-checkout, roadside pickup and outsourcing delivery options, we were hiring and continuing to hire more crew. We know this time of distancing will end and when this is done If so, our crew will be in our stores to help you find our next great product as it always has been. “
Trader Joe’s offered grocery delivery in New York City for years but ended the program because it was too costly, the company told Business Insider last year.
“Rather than passing on unsustainable cost increases to our customers, removing the shipment will allow us to continue to offer outstanding value – quality products at low prices for everyday use – and make better use of valuable space in our stores,” said a representative from Trader Joe on the time .
Walmart, Kroger, Aldi, Amazon’s Whole Foods, and other grocers have invested heavily in online food services, hiring hundreds of thousands of workers, since the pandemic began.
While some companies, including Walmart and Kroger, are investing in automated grocery fulfillment options, these services are not yet widely available, and the vast majority of online orders across the industry are collected and packaged by grocery store staff or outsourced to third-party companies like Instacart.
Trader Joe’s buyers say this on Twitter:
—Kristenhearsawho (@KristenMalkemus) April 21, 2020 – Richelle (@MrsRichelleRice) April 21, 2020 – Kristennnnn (@singingsox) April 19, 2020 – Alexandria Boddie (@oddboddie) April 18, 2020 – chickswknives (@ChickswKnives) April 16 2020 – Peggy B (@blazerrose) April 16, 2020 – Tamara Kenyon (@TamaraKenyon) April 15, 2020