October 23, 2012
Publix Seeks Reputation as Easy (Deli) Pickup
Taking on quick-service restaurants, Publix is testing an deli online ordering/pick up system. The free service debuted in August at its Lakeland, FL store and was expanded in October to 50 additional stores.
Customers place orders online or via mobile devices by visiting www.publix.com/order. Once on the site, shoppers choose their customized sub or wrap, specify a pickup time and proceed with order placement. An order pickup number is provided on the customer’s final order summary and e-mailed for verification.
Orders are held in a designated spot in the deli department identified with an "Online Easy Pickup" sign. Payment is tendered at the time of pickup.
Tailored to smartphone users, the system prompts customers to save order selections to their "Favorites" for future re-ordering convenience. Before the service, customers could phone or fax in their orders. The online option catches up to Chipotle, Five Guys and other fast food chains that have rolled out online ordering smart phone apps but also addresses the problem of long wait times at many deli departments, particularly at lunch time.
"Publix Deli Online Easy Ordering is a natural extension of our service commitment, especially for our on-the-go customers," said Maria Brous, Publix director of media and community relations, in a statement.
The test is reportedly going to cities that include Tampa, Jacksonville, Miami and St. Augustine.
"A lot of other players in the grocery industry will be watching to see how this works out," John Fleming, director of communications for the Florida Retail Federation, told the St. Augustine Record. "It really is an example of a grocery store competing like a quick-service restaurant."
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Recent Discussions
Discussion Questions
Is there a bigger opportunity for grocers to compete with QSRs? What do you think of the rollout potential of a service such as “Online Easy Pickup” across the grocery channel?
Poll
I have my local Chinese restaurant on speed dial and pick up when I tell them I’ll be there. This kind of service has been around since the invention of the telephone. The only thing different is that the method of communication is slightly different.
Here’s a “novel” idea: how about competing like a C-store, since they have all of the merchandise but none of the organized, appropriate merchandising!
I’m glad to see Publix doing something about the deli, but there is much more work to do. My experience in a number of Publix stores has been that there is a line/wait 7 out of 10 times. For all that they do well, Publix’ deli is lacking in a number of ways. The quality/selection of hot food is mediocre at best (fried chicken, mac & cheese, etc.) while the meat/cheese selection is strong but given over almost exclusively to Boar’s Head. It’s great to be able to order ahead and re-order your favorites, but they will need to improve offerings, add staff, and have a few “deli only” parking spaces if they really want to compete.
“Click and collect” is a huge opportunity for US retailers and deli is a very creative place to start; not the biggest sales potential but extremely high frequency, profitable and incremental. The time is finally right for this idea. The challenge is most existing grocery stores lack the footprints and zoning for drive through. Whoever figures out how to operationalize it best will win.
This is a terrific move by Publix. Not only does it position itself against the QSRs, it also provides for a viable alternative to the Subways, Jimmy Johns, and Panera Breads which have a strong presence in the Florida market. In addition, it may be a preemptive move against Wawa’s entry into the Florida marketplace, with its targeted positioning as a convenient fast casual alternative.
This online ordering could be expanded to a full grocery shopping online ordering model with in-store pickup. The implementation of such a model deals with the “final mile” issues associated with grocery delivery. In addition, it provides for an empty cart to tour the perishables (high margin) sections of the supermarket. A “win win” for customers and supermarkets.
There is an opportunity for grocery retailers to compete with QSRs, but they must be able to deliver on the promise. The order must be ready for pickup and the checkout process must be timely. Additionally, if there is a hot option to the service, it must be delivered hot to the shopper. If any of these are lacking, there will be a lot of labor for very mediocre results.
I think this is brilliant. I watch the checkout line around 5:30 p.m. and so many baskets have ready-to-eat foods. Completing the order before going to the supermarket and saving time once there add up to more ways to satisfy customers, and encourage more visits and more time in the store.
Sure there’s a bigger opportunity. The question is how big? What Publix is doing here is smart and thoughtful. They don’t make too many mistakes.
Getting this effort right simply creates more opportunity. Is it a big revenue maker? Not to start with. What it does do is create a launching point to grow even more options.
Too many grocery retailers have launched into attempting too much — like putting their entire catalog online — without even attempting to perfect a small offer. Publix methodology with this and just about everything the do is measured, tested, improved, and then either launched or pulled.
Is that too conservative? No. It is the way to success.
This is not a new concept for grocery deli. Kiosk examples have been around for several years, but have largely failed due to poor usability and execution.
Note that WaWa seems to have cracked the code on both usability and execution for the kiosk in the convenience segment.
Moving to a smartphone-based app for ordering is a no-brainer, but does nothing to fix the major issues of the past. If Publix has made the app easy to use, and consistently executes against the reservation time, then this old idea may (finally) get some traction.
I’m with Al McClain. There are a number of adjustments grocery stores would have to make to compete with c-stores and QSRs. I think the real question here is whether online ordering actually speeds things up, and the jury’s out on that. I’ll stick with My Safeway, which has a superb selection and lets you taste everything before ordering.
I think it is a smart decision and one that will hopefully win Publix more of the Millennials’ share of wallet. We know that traditional grocery retailers are third on Millennials’ list of “favorite” places to shop for groceries. We also know they are heavy consumers of QSR. This is one way to get more of their “trips” and expose them to what else Publix has to offer (especially in their perimeter departments which Millennials are more prone to shop compared to other generations). However, speed of service and commitment to quality/value will be critical for this to be truly successful.
This has been tried before and with some success. The idea of the online ordering takes it to another level. And with the Publix reputation for customer service, I’m sure they will deliver a great experience.
No doubt this is a smart move by Publix, but its success is going to be limited unless and until it starts to embrace database marketing the way Kroger has. Publix has a great customer experience, including its pricing strategy, but it still relies on mass marketing with limited customer insights. Online ordering and pickup will help it build a database of addressable customers and open up opportunities in a lot of other areas within the store, from the pharmacy to the bakery to the meat counter, as well as other food takeout areas like sushi.
Good idea to test. Understanding the impact on customers’ loyalty, and broader visit and spend pattern will be important in shaping any roll-out plans.
The opportunity has legs and I could see it expanding with up-sells. For example, when you order they could ask about drink, chips and maybe even fresh fruit or salad add-ons. Also, if they can collect data on specific customers they might be able to present special offers that customers can take advantage of while in the store. For example special coupons for in-store purchases while they are picking up the deli sandwich. Optimizing the in store visit to include additional items not in the deli is really interesting.
This is not anything new; but the process makes sense. Publix can make it work. This being football season makes it more feasible and manageable. Tailgating becomes easier when the order is ready and no wait is involved.
It will also ease the crowd and lower the wait around the 5-6 o’clock hour when so many customers are looking for what to have for dinner.
Great move by Publix. This is consistent with their history of focus on customer service. They continue to find ways to serve their customers and keep them loyal. Way to go!
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I have my local Chinese restaurant on speed dial and pick up when I tell them I’ll be there. This kind of service has been around since the invention of the telephone. The only thing different is that the method of communication is slightly different.
Here’s a “novel” idea: how about competing like a C-store, since they have all of the merchandise but none of the organized, appropriate merchandising!
I’m glad to see Publix doing something about the deli, but there is much more work to do. My experience in a number of Publix stores has been that there is a line/wait 7 out of 10 times. For all that they do well, Publix’ deli is lacking in a number of ways. The quality/selection of hot food is mediocre at best (fried chicken, mac & cheese, etc.) while the meat/cheese selection is strong but given over almost exclusively to Boar’s Head. It’s great to be able to order ahead and re-order your favorites, but they will need to improve offerings, add staff, and have a few “deli only” parking spaces if they really want to compete.
“Click and collect” is a huge opportunity for US retailers and deli is a very creative place to start; not the biggest sales potential but extremely high frequency, profitable and incremental. The time is finally right for this idea. The challenge is most existing grocery stores lack the footprints and zoning for drive through. Whoever figures out how to operationalize it best will win.
This is a terrific move by Publix. Not only does it position itself against the QSRs, it also provides for a viable alternative to the Subways, Jimmy Johns, and Panera Breads which have a strong presence in the Florida market. In addition, it may be a preemptive move against Wawa’s entry into the Florida marketplace, with its targeted positioning as a convenient fast casual alternative.
This online ordering could be expanded to a full grocery shopping online ordering model with in-store pickup. The implementation of such a model deals with the “final mile” issues associated with grocery delivery. In addition, it provides for an empty cart to tour the perishables (high margin) sections of the supermarket. A “win win” for customers and supermarkets.
There is an opportunity for grocery retailers to compete with QSRs, but they must be able to deliver on the promise. The order must be ready for pickup and the checkout process must be timely. Additionally, if there is a hot option to the service, it must be delivered hot to the shopper. If any of these are lacking, there will be a lot of labor for very mediocre results.
I think this is brilliant. I watch the checkout line around 5:30 p.m. and so many baskets have ready-to-eat foods. Completing the order before going to the supermarket and saving time once there add up to more ways to satisfy customers, and encourage more visits and more time in the store.
Sure there’s a bigger opportunity. The question is how big? What Publix is doing here is smart and thoughtful. They don’t make too many mistakes.
Getting this effort right simply creates more opportunity. Is it a big revenue maker? Not to start with. What it does do is create a launching point to grow even more options.
Too many grocery retailers have launched into attempting too much — like putting their entire catalog online — without even attempting to perfect a small offer. Publix methodology with this and just about everything the do is measured, tested, improved, and then either launched or pulled.
Is that too conservative? No. It is the way to success.
This is not a new concept for grocery deli. Kiosk examples have been around for several years, but have largely failed due to poor usability and execution.
Note that WaWa seems to have cracked the code on both usability and execution for the kiosk in the convenience segment.
Moving to a smartphone-based app for ordering is a no-brainer, but does nothing to fix the major issues of the past. If Publix has made the app easy to use, and consistently executes against the reservation time, then this old idea may (finally) get some traction.
I’m with Al McClain. There are a number of adjustments grocery stores would have to make to compete with c-stores and QSRs. I think the real question here is whether online ordering actually speeds things up, and the jury’s out on that. I’ll stick with My Safeway, which has a superb selection and lets you taste everything before ordering.
I think it is a smart decision and one that will hopefully win Publix more of the Millennials’ share of wallet. We know that traditional grocery retailers are third on Millennials’ list of “favorite” places to shop for groceries. We also know they are heavy consumers of QSR. This is one way to get more of their “trips” and expose them to what else Publix has to offer (especially in their perimeter departments which Millennials are more prone to shop compared to other generations). However, speed of service and commitment to quality/value will be critical for this to be truly successful.
This has been tried before and with some success. The idea of the online ordering takes it to another level. And with the Publix reputation for customer service, I’m sure they will deliver a great experience.
No doubt this is a smart move by Publix, but its success is going to be limited unless and until it starts to embrace database marketing the way Kroger has. Publix has a great customer experience, including its pricing strategy, but it still relies on mass marketing with limited customer insights. Online ordering and pickup will help it build a database of addressable customers and open up opportunities in a lot of other areas within the store, from the pharmacy to the bakery to the meat counter, as well as other food takeout areas like sushi.
Good idea to test. Understanding the impact on customers’ loyalty, and broader visit and spend pattern will be important in shaping any roll-out plans.
The opportunity has legs and I could see it expanding with up-sells. For example, when you order they could ask about drink, chips and maybe even fresh fruit or salad add-ons. Also, if they can collect data on specific customers they might be able to present special offers that customers can take advantage of while in the store. For example special coupons for in-store purchases while they are picking up the deli sandwich. Optimizing the in store visit to include additional items not in the deli is really interesting.
This is not anything new; but the process makes sense. Publix can make it work. This being football season makes it more feasible and manageable. Tailgating becomes easier when the order is ready and no wait is involved.
It will also ease the crowd and lower the wait around the 5-6 o’clock hour when so many customers are looking for what to have for dinner.
Great move by Publix. This is consistent with their history of focus on customer service. They continue to find ways to serve their customers and keep them loyal. Way to go!