business news in context, analysis with attitude

The Pioneer Press reports that Lund Food Holdings is launching an online grocery shopping service for both its Lunds and Byerly’s banners, offering shoppers some 15,000 SKUs available for either pickup or delivery.

Cost for delivery is $9.95, while the store pickup fee is $4.95.

The move positions Lunds and Byerly’s to compete with, a pure-play e-grocery service that has garnered a lot of attention in the Minneapolis-St. Paul area over the past half-decade.

The Pioneer Press writes that Lunds and Byerly's will require customers be home to accept their deliveries, in order to guarantee freshness; the company also will provide same-day service.

SimonDelivers tells the paper that it expects to be able to offer same-day delivery service within the next three to four months; SimonDelivers currently makes both attended and unattended home deliveries.

“We know busy, Web-savvy families are beginning to look for this feature,” Doug Kline, a spokesman for Lund Food Holdings, tells the paper. “Now is the time to establish ourselves in this arena because we expect others will do this too.”
KC's View:
They’ve got that right.

And we suspect that the folks at Lunds/Byerly’s, being very savvy about the business, understand that online shopping is just a component of the overall business, a tactic to be used in their broader – and very effective – strategy.