Grocery eCommerce is here to stay. Ocado and Kroger have a signed a contract to go into partnership to build Kroger’s automated warehouse centers. Ocado – based in the U.K. – said they have plans for customer fulfillment centers (CFCs) by the end of the year and another 20 in the first three years working together. We work with grocers, as we have teams of consultants help clients with the challenges of design, including multiple storage and picking temperature zones, a large SKU assortment, and delivery promises of two hours into customers’ hands.
Vertical warehouses in metropolitan areas. CBRE reports that multistory warehouses are an emerging option due to the lack of land and warehouse space along with the upward trend in eCommerce. Logistics Management reports, “Multistory warehouses are an emerging phenomenon in the U.S., but they might pencil out only in the densest neighborhoods and cities,” said David Egan, CBRE’s Global Head of Industrial & Logistics Research, in a statement. “We might need to see some additional adaptations that are common in Asia and Europe, such as smaller delivery trucks, which allow for tighter ramps and, in turn, smaller building footprints.” Right now, there are at least five multistory warehouse plans in NYC, Seattle and San Francisco. In tying this to our story above; when grocery delivery within 2 hours becomes the expected norm and not the exception, the option to build in cities is ever more important.
Peak Season shipping wars to benefit consumer. CNBC (and many others) reports that Target’s improvements in their delivery times is a “game changer” in their goal to surpass Walmart and Amazon with offers of quick delivery. Having improved shipping times in 2016 to 2017, this season they are set to continue to find ways to garner customer loyalty. Two-day shipping is free to Target credit card holders (as well as 5% off), and free for others with a $35 minimum purchase. CNBC reported, “Target acquired Instacart rival Shipt for $550 million late last year. The deal brought with it a network of Shipt’s personal shoppers that pick items off of shelves and deliver them to customers’ homes. The service, which is also available at other retailers including Costco and Publix, retails for $99 per year. Target said Shipt’s membership has tripled since it was acquired.”
As of September 8, 2020, Crimson & Co (formerly The Progress Group/TPG) has rebranded as Argon & Co following the successful merger with Argon Consulting in April 2018.