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	<title>Retail News Update &#187; Delivery Charges</title>
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		<title>US switching off online grocery shopping</title>
		<link>http://artrm.com/retail-news/2009/04/us-switching-off-online-grocery-shopping/</link>
		<comments>http://artrm.com/retail-news/2009/04/us-switching-off-online-grocery-shopping/#comments</comments>
		<pubDate>Sun, 19 Apr 2009 12:16:12 +0000</pubDate>
		<dc:creator>retailnu</dc:creator>
				<category><![CDATA[News & Articles]]></category>
		<category><![CDATA[Online Shopping]]></category>
		<category><![CDATA[Retail Formats]]></category>
		<category><![CDATA[Albertsons]]></category>
		<category><![CDATA[Delivery Charges]]></category>
		<category><![CDATA[FreshDirect]]></category>
		<category><![CDATA[grocery]]></category>
		<category><![CDATA[Home Delivery]]></category>
		<category><![CDATA[Ocado]]></category>
		<category><![CDATA[Online]]></category>
		<category><![CDATA[Retailing]]></category>
		<category><![CDATA[shopping]]></category>
		<category><![CDATA[supermarkets]]></category>
		<category><![CDATA[Tesco]]></category>
		<category><![CDATA[U.S.]]></category>
		<category><![CDATA[UK]]></category>
		<category><![CDATA[Waitrose]]></category>

		<guid isPermaLink="false">http://www.artrm.com/retail-news/?p=1706</guid>
		<description><![CDATA[Many of the trends we see in the UK market first take place in the US and then jump across the pond, but in the case of grocery home deliveries there is a major divergence between the two markets.]]></description>
				<content:encoded><![CDATA[<p>Many of the trends we see in the UK market first take place in the US and then jump across the pond, but in the case of grocery home deliveries there is a major divergence between the two markets.</p>
<p>While online grocery shopping continues to grow at a rapid pace in the UK, it appears to be a different story across the Atlantic. In the past week the competitive UK market has digested the news that Waitrose is scrapping its delivery charges and Ocado is to sell 4,000 Waitrose own-label products at a cheaper price than is available in the grocer&#8217;s own stores.</p>
<p>The former is bound to have repercussions, as the other major grocers take a close look at their delivery-charging models, and although the latter will have less impact on the wider market it does signify how desperate Ocado is to grow its share of business.</p>
<p>In contrast, in the US, Albertsons announced that it is to stop its home delivery for online orders in all its markets. The only thing it is retaining in certain areas is online ordering for collection in-store, which it says customers regard as a convenient way to shop.</p>
<p>The divergence in the two markets must largely be down to the high density of delivery drops achievable in the UK whereas the vast distances between shoppers in the US does not justify the cost to retailers of offering home delivery services for low margin grocery products. This is undoubtedly why it is still viable in higher density conurbations like New York where FreshDirect is a popular service.</p>
<p>This is at the heart of why Tesco is the world&#8217;s biggest online grocer and the significantly larger US market has nothing that comes close to comparing with it.</p>
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		<title>Waitrose scraps delivery charges.</title>
		<link>http://artrm.com/retail-news/2009/04/waitrose-scraps-delivery-charges/</link>
		<comments>http://artrm.com/retail-news/2009/04/waitrose-scraps-delivery-charges/#comments</comments>
		<pubDate>Sun, 19 Apr 2009 12:22:23 +0000</pubDate>
		<dc:creator>retailnu</dc:creator>
				<category><![CDATA[News & Articles]]></category>
		<category><![CDATA[Online Shopping]]></category>
		<category><![CDATA[Retail Formats]]></category>
		<category><![CDATA[Retail Management]]></category>
		<category><![CDATA[Supply Chain Mgt]]></category>
		<category><![CDATA[Delivery Charges]]></category>
		<category><![CDATA[Food]]></category>
		<category><![CDATA[grocery]]></category>
		<category><![CDATA[J Sainsbury]]></category>
		<category><![CDATA[Minimum Order]]></category>
		<category><![CDATA[Ocado]]></category>
		<category><![CDATA[Online]]></category>
		<category><![CDATA[shopping]]></category>
		<category><![CDATA[supermarket]]></category>
		<category><![CDATA[Waitrose]]></category>

		<guid isPermaLink="false">http://www.artrm.com/retail-news/?p=1708</guid>
		<description><![CDATA[Waitrose is this week scrapping delivery charges for the groceries customers order online in a move that will increase pressure on rival supermarkets to follow suit.]]></description>
				<content:encoded><![CDATA[<p>The upmarket supermarket chain is abolishing the charges, which total £3 between Monday and Wednesday and £5 for the remainder of the week, as it tries to accelerate online growth that is currently running at 60pc.</p>
<p>&#8220;We want to ramp up the volumes,&#8221; said Mark Price, managing director of Waitrose. &#8220;Delivery charges are a real irritation for customers when they&#8217;re spending £90 on a shop.&#8221;</p>
<p>Britain&#8217;s worst recession in more than two decades has heaped pressure on supermarket chains to pitch their pricing strategies correctly as customers tighten their belts.</p>
<p>Waitrose, with 200 branches across the UK, has benefited as people eat out less, according to Mr Price. The chain, which recorded a 6pc jump in sales over Easter compared with last year, said it was winning customers from rivals such as J Sainsbury.</p>
<p>Owned by The John Lewis Partnership, Waitrose is betting that its move will help prise shoppers away from rivals in the online grocery market, which it claims will enjoy sales of £13bn within four years.</p>
<p>The charges will cease from Wednesday although the Waitrose Deliver service will still require a minimum order of £50. Waitrose Entertaining, its service for party food and drink, does not have a minimum order requirement.</p>
<p>The decision to scrap the charges comes in the same week that shoppers at online delivery service Ocado will be able to buy Waitrose food cheaper online than from the supermarket for the first time.</p>
<p>John Lewis Partnership has a stake in Ocado but does not fully own it, so the internet delivery company is able to charge what it likes for Waitrose products.</p>
<p>Mr Price has said there are many promotions that Waitrose runs in store that Ocado does not offer. The free delivery is not being offered by Ocado.</p>
<p>Mr Price said trading in the first three months had been better than expected and he was in the optimists camp regarding the rest of 2009.</p>
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