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Can we finally let Webvan rest in peace?

Written by George Anderson

Image: Kroger

The ghost of Webvan has been banished forever. The long defunct company, used for years as a caution to any considering an ill-advised jump into online grocery sales, no longer holds sway over the decision-making of retail business executives. Today, some of the largest grocers in the country – Walmart, Kroger, Albertsons/Safeway and Ahold Delhaize – all offer online sales with either on-site pickup and/or door-to-door delivery. Upstarts including Amazon.com, FreshDirect, Instacart and others abound. Kroger and Walmart have been most aggressive among store operators rolling out their services. Each has been sure to offer their online ordering and store pickup in the home markets of their rival – tweak, tweak. Walmart president and chief executive Doug McMillon recently credited “the continued roll out of online grocery and growth of pick-up in stores and clubs” as playing significant roles in his company’s strong quarerly performance. “We continue to see proof that our customers enjoy a seamless shopping experience,” he said. “The distinctions that we talk about today between stores, apps, pick-up, delivery and sites are continuing to blur into the background for customers. For them, it’s just Walmart.” Kroger announced plans last year to expand ClickList online ordering and store pickup system to 45 percent of its locations across the U.S. On the company’s earnings call in June, CEO Rodney McMullen said it had expanded ClickList to 25 markets with more to come. Kroger has found a high level of satisfaction with the service and claims it does not cannibalize its in-store business. “From everything that we see, we find it an ‘and’ and not an ‘or’,” said Mr. McMullen. “And the ClickList customer continues to come into the store and it really — it’s just one more way of making their life a little bit easier.” Earlier this week, Albertsons and Safeway began offering online ordering in Denver. “The plan is to expand to other parts of Colorado, but this is our first go of it here,” Safeway spokesperson Kris Staaf told The Denver Post. “We’ve had the service in other markets like California, Washington and Oregon, and it’s been tremendously successful.”

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