In-home delivery seems to be the next logistical step in grocery convenience, and all eyes will be on Walmart’s test. There’s no doubt that this service will resonate with some consumers. However, the real test will be 1.) how consumers in general take to the service and 2.) can it be delivered seamlessly and scaled profitably (or at least not too unprofitably). Ultimately, I think that the concerns about privacy and the creepiness of allowing strangers to enter your home will stunt adoption.

Personally, I would not like someone to access my home in this way. Others will take the opposing view. The success of this scheme will depend on the balance between the two groups. The cost to Walmart will also be a factor in how far and fast this is rolled out. My analytical view is that this kind of service will grow, but will remain fairly niche over the medium-term.

Many folks don’t even like talking to their neighbors anymore. I see this as a very small niche scenario, as I don’t want anyone in my home for this service, and my small sampling of folks who I talk with would not choose this option either. BOPIS is a yes for them. We’ll see how this new service gains traction.

Potential concerns about in-home delivery are almost too numerous to mention — liability, training, pets, etc. This idea sounds appealing but will likely be a rare money-loser for Walmart.

Walmart will learn whether there is an interest in grocery delivery of items that need to be refrigerated or frozen, whether consumers will support the charges associated with the program, and whether Walmart can make a profit on this idea. Over time, with item delivery becoming part of consumers’ expectations, more Americans will sign up for this service.

No, I don’t see it. I didn’t see it for Amazon, and I don’t see it as a big winner for Walmart.

They’re going to get skewed results from Vero Beach, which has a lot of snowbird retirees who might appreciate having the whole process done for them. But maybe that’s the story behind the story.

In my story, Laura broke her hip and is happy to have someone take care of bringing her groceries into the house.

Would I allow a Walmart employee access to my home when I am not there? Nope.

Retailers are wracking their brains to come up with the next big thing; the coolest customer convenience. I get it. Some people will be just fine with strangers walking around their homes, but I can’t imagine that this service will be big.

P.S. The TV is on as I write this. There are two cases in the news right now about people being shot in their own homes by police who thought they were intruders; one because a neighbor called to report an open garage door. Who would want an in-home delivery job?

Tell Laura she has more nerve than I by letting someone in her garage. Maybe it’s because I live in a big city where garages seem to serve as portals of entry for burglars. That being said, I am sure there will be many who love the convenience, such as home bound customers, those not willing to make a trip, and the list goes on and on. Perhaps as gas prices rise, this program will save money for customers. But here is what I really like: the thrust of aggression of Walmart in the marketplace.

Walmart will learn whether home access concerns outweigh convenience with grocery products. They will learn whether a set of customers are willing to invest monthly for this type of service and the level of demand. They will learn about some of the geo-operational concerns of offering this kind of service- e.g. rural/urban, bulk/individual, fresh/shelf. They’ll learn about the cost structure and management of this kind of service. They’ll learn whether it makes sense to launch it nationally or in select regions. They’ll learn more about why customers prefer to select their own food products and when they’re willing to pass. Walmart will learn whether this type of service means heavy education and changing customer behavior and/or how to insert the service into existing behavior. And that’s just the tip of the iceberg. As for adoption, that’s hard to tell. The grocery market has been moving slower than other markets. A recent Gallup poll suggests slow slow growth. The assumptions of single home residences vs. rental properties. Temporary arrangements vs. ongoing needs for say, the elderly.… Read more »

History often repeats itself, and rarely rhymes. I hope Walmart spent some time consulting with Tim DeMello, the founder of Streamline.com and the first person I know of to try to make in-home delivery work. For those too young to remember, Streamline put temperature controlled boxes in people’s garages. Drivers would use a secure code to enter the garage and put refrigerated goods in a fridge, dry cleaning on clothes rods, etc. I remember touring the Streamline warehouse and seeing all of the trashed refrigerators. Of course, moving directly into the home (hopefully) avoids customers driving their cars into delivery areas, since the delivery area is the kitchen, but it opens a Pandora’s Box of potential issues from consumers filing false robbery claims to … well … actual robberies, or worse. These in-home delivery plans are only as good as their weakest link. One publicized proven robbery, rape, assault or even oil tracked through a kitchen floor and the program is over. So, for now at least, I think the liability potential still exceeds the… Read more »

Let’s dig into this persona. How long does it take Laura to put groceries away? Yes, it’s a pain, but compared to traditional grocery delivery, this only saves her a little a bit of time. The most painful part of this task is probably refrigerator Tetris and tossing whatever her family failed to eat the week prior. Whole Foods already delivers groceries directly to her door between 8-10pm. The target persona here isn’t Laura — it’s Grandma Judith. The task of unpacking groceries is a bit more arduous for her, and she could be working full time too. Why aren’t they focusing their marketing efforts there?

Many people (myself included) have no problem letting people into our homes to do plumbing and electrical work while not physically there. So assuming there is a level of trust that Walmart is vetting their delivery people, what is the difference in letting a person deliver groceries to your kitchen? Not that much actually. There could actually be demand for this – but the tests will need to prove it out from a financial perspective in order to scale.

Just another signpost on the road of crazy ideas.
Three words: theft, breakage, Doberman.

I don’t think that it matters whether it is successful or not. This is a real chance to learn more about what the customer really wants in the way of time savings and convenience, and what they are willing to pay for.

Walmart is not dumb and is making all kinds of moves to make sure the person who has access to your house had been thoroughly screened. I would bet the screening is much better then that done by most house cleaning services.

Privacy is culture and it changes over time. 15 years ago it would be ludicrous to post all our family pictures and trips online; now it’s almost standard. I expect we’ll see that same thing over time for these kinds of services. Is the value exchange worthwhile? Consumers will increasingly answer: yes.

If anyone can do this, it is someone like Walmart or Amazon who have resources, and have not gone through data breach or privacy related credibility issues yet. I think at some point in time convenience will trump privacy and safety concerns, but we are not there yet. That’s the business of these companies, though — to push the envelope. Walmart can probably test places with lower barriers such as mom and pop stores. Leaving deliveries in a garage in a temperature controlled box is also good idea. They can even offer to provide a low cost fridge too. Maybe waiving off the fees for someone who spends their entire grocery bill on Walmart (probably $200 to $400) might entice and tip lot of people over. From a safety point of view, if they guarantee a pool of delivery people with photos, etc., that could alleviate some concerns. Maybe the first two deliveries are done only when someone is at home. Since these are presumably delivered from a local Walmart, that should be possible. Walmart… Read more »