INSTACART’S CEO has issued a 10-word affordability warning to all chains.
Talking at a conference on Wednesday, Chris Rogers urged retailers to match online to an in-store prices.
Rogers, who became CEO in August, told the Goldman Sachs Communacopia & Technology Conference that keeping consumer costs down was crucial.
He issued a ten-word warning to the chains, saying: “Affordability is probably the biggest unlock to online grocery adoption.”
He added that it was the “number one reason” that turns consumers away from the platform.
In an effort to retain more consumers, Instcart is working alongside chains and advising on pricing strategies and incorporate their loyalty programmes, reports Grocery Dive.
He told the conference that the brand is urging retailers to match their online and in-store prices or just above.
Those retailers that do, he said, outperform other chains on Instacart who raise their prices on the platform.
Rogers claimed that those who don’t mark up their prices have grown 10 per cent faster.
Rogers went on to add that the data suggests it’s a “strategic move for our retail partners”.
He said: “We’re going to really show the business case to retailers and show them the compelling reasons why they should do this and also just make sure that we’re educating them on the broader digital landscape.”
Schnuck Markets, Heritage Grocers Group and home improvement chain Lowe’s all switched to price-parity earlier this year.
In addition, Walmart Canada and Costco both lowered their mark-up prices.
Instacart is also trialling a tool on it’s app that identifies those price-parity retailers.
The company this year acquired e-commerce solutions provider Wynshop.
Rogers suggested the move could see a market beyond North America.
And, in the face of Amazon’s new same-day perishables service, the CEO said Instacart still maintains the advantage.
“We are going to use this as a rallying cry with our retailers,” Rogers said.
In other grocery news, a beloved supermarket announced it will open several new locations nationwide.
The supermarket, which shoppers say is “better than Walmart,” will open six new stores, adding to its 1,400-store portfolio.
Publix, which operates stores in Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, and Virginia, shared the news on September 12.
The popular grocery store was founded in 1930 and has since become renowned for its exceptional customer service, high-quality products, and well-maintained stores.
The new stores are all slated to open before the end of September, according to the company’s website.
