The Checkout: UNFI and NCG Grow Partnership, Giant Revamps Ecomm Platform

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UNFI and NCG Grow Partnership

Grocery distributor United Natural Foods (UNFI) and industry organization National Co+op Grocers (NCG) this week extended their supply agreement in which UNFI is the primary wholesaler and distributor to NCG’s food co-ops.

“Our team has taken great pride in helping optimize operational efficiencies and purchasing power for NCG member co-ops,” Chris Testa, UNFI president and CMO, said in a release. “We have a strong history and relationship with NCG and look forward to helping them be even better positioned for future growth.”

Partners since NCG launched in 1999, the group of co-ops now is one of UNFI’s largest clients, with 147 stores reaching across 38 states and generating $2.1 billion in annual sales. Under the renewed partnership, NCG will seek new strategies to utilize UNFI’s 250,000 SKUs of natural, organic, conventional, specialty, bulk and wellness products, including its Brands+ portfolio of over 5,000 private label products.

“UNFI has always had a strong leadership position in the natural channel and is now able to help us better position our stores with an expanded offering, new product categories, and more operational support,” C.E. Pugh, CEO of NCG, said in the release. “We’re looking forward to continuing our relationship with UNFI and leveraging their increased scale in the future.”

Not all co-ops have fared well during the pandemic. Food Co-op Initiative (FCI) director Stuart Reid said a little over half of NCG’s members — particularly ones that had to limit capacity for safety reasons — saw lower sales. Others, Reid said, were able to stay in stock and serve customers safely, becoming a preferred choice over grocery stores.

Giant Food Refreshes eCommerce Platform as More Consumers Shop Online

Washington D.C.-based grocery chain Giant Food this week launched a new ecommerce platform which will feature the addition of hundreds of new products including a focus on “plant-based foods as well as unique local and global offerings.” The new website and app combine the retailer’s previous offering through Peapod.com (owned by parent company Ahold Delhaize) and Giantfood.com into a single site for grocery delivery and pickup.

The revamped platform also features personalized shopping, a rewards program and discounts, offering shoppers an even more convenient way to place online orders. The opportunity to integrate savings programs also may appeal to shoppers who are more carefully monitoring their spending.

The new offering also features recipes and tips from the company’s in-store nutritionists, which the retailer hopes will help consumers as they cook more at home and are increasingly concerned about doing so healthfully.

The uptick in cooking is bringing new shoppers online, especially for shelf-stable items, according to market insights firm Social Nature. According to the firm’s research, 79% of consumers are buying online, but there’s more opportunity to bring grocery shoppers to online channels. Giant Food, which launched 84 years ago, is hoping to do that via a “seamless platform,” said company president Ira Kress.

“Consumer preferences are shifting, and at Giant, convenience and value are key,” Kress said in a release. “The new Giantfood.com brings customers the flexibility to shop how and when they like.”

Peapod users will not have a disruption in service and their information will be transferred to the new site, the retailer said, with pickup and delivery available to over 6 million shoppers throughout D.C., Virginia, Maryland and Delaware. Same-day delivery will be available in some locations.

Shoppers Report High Anxiety During Pandemic

For many shoppers, anxiety is pushing them to shop online. According to a report from consumer insights firm Kelton Global, anxiety defines the current in-store shopping experience, as excitement and impulse buys have declined significantly. However, the report noted, there’s an opportunity for retailers to rebuild trust amongst consumers.

In a recent survey, consumers listed stress and nervousness as their top emotions while shopping. Though fears around COVID-19 are declining, the report found, many shoppers remain cautious, with concerns around close proximity to strangers, navigating in-store safety regulations and potential conflicts with other shoppers.

“Before COVID-19, shoppers experienced a rich tapestry of trip types and emotions,” said Amy Rogoff Dunn, partner of insights and strategy at Kelton. “Now, all of these occasions and emotions have coalesced into one type of shopping — a kind of anxiety-filled mission. People are going as infrequently as possible.”

Those who brave the in-store experience are often doing so cautiously: 81% of shoppers report searching for safety information before visiting a store, and 64% aim to touch as few items as possible in stores. Additionally, 59% prefer self-service checkout options. At the same time, 70% of shoppers say they are more appreciative of grocery workers now than before the pandemic.

Added stressors are coming from economic strains: 74% of consumers say they are on a “strict budget,” according to the report. Additionally, social unrest around racial issues throughout the country may be adding more anxiety and making it challenging to connect with consumers. Retailers should be thoughtful in how they communicate, said Martin Eichholz, Kelton’s chief insights officer, as anxiety and uncertainty remain.

“Collectively, our data suggest some key takeaways for retail brands trying to find the way forward right now,” Martin Eichholz said. “Reassure people that it’s not all on them individually to navigate this new world. Ease tension over the unpredictability of other shoppers. Demonstrate that you care, and that you’re putting people ahead of profits.”