Dive Brief:
- E-commerce platform provider Rosie and the Retailer Owned Food Distributors & Associates, a cooperative formed to facilitate and enhance the success of independent grocers, have forged a partnership to bring Rosie’s online shopping technology to 2,000 independent retailers in the next two years, according to The Shelby Report.
- ROFDA stated, "The partnership will provide omni-channel online shopping programs, education on digital engagement best practices and technology leadership to independent grocers by harnessing the aggregated cooperation of the nation’s leading wholesalers to provide an advanced, affordable e-commerce solution that enables independent retailers to compete with Amazon, Walmart and other national retailers," per The Shelby Report.
- "Rosie has transformed the way independent grocers engage digitally with their shoppers, with seven of the top 15 U.S. wholesalers recommending Rosie to more than 11,000 stores nationally," Rosie COO and ROFDA Advisory Council Member Jon Ambrose told The Shelby Report. "Our mission has always been to not only provide technology solutions, but also everything a grocer needs to leverage that technology to engage shoppers and win in a rapidly evolving marketplace. Rosie and ROFDA are leveling the playing field by enabling leading local retailers and their wholesalers to cooperate, innovate and unite to compete with national chains and online-only merchants."
Dive Insight:
In an increasingly digital-focused, Amazon-dominated industry, retailers that aren't improving their store technology and developing e-commerce capabilities could be easy prey. It remains to be seen whether Rosie will be enough to equip independent grocers to survive in this competitive landscape, but one thing is certain: doing nothing isn't an option.
Small chains and independent grocers have long played underdog to larger, more formidable competitors — including big-box retailers like Walmart, Target and Costco, large-chain grocers like Kroger, and online behemoth Amazon. A recent report by investment firm Barclays went so far as to predict that Amazon and alternative formats will bring “carnage” to supermarket operators.
Unata’s 2017 Grocery eCommerce Forecast predicts that 31% of U.S. consumers are expected to order groceries online this year, a 19% increase from last year. The study also found that 80% of shoppers who purchased groceries online last year plan to do so again this year. However, 23% of consumers who ordered online last year said that their current grocer does not offer e-commerce services.
Many grocers — chain stores and independents alike — are scrambling to develop online grocery capabilities to provide the convenient omni-channel experience consumers demand. Walmart and Kroger are heavily investing to ramp up their click-and-collect models, and Costco recently announced it will offer two-day delivery of shelf-stable products through its CostcoGrocery service. A host of regional retailers — Bashas, H-E-B, Stop & Shop and Wegmans among them — are teaming with Instacart to provide home grocery delivery.
The deal between ROFDA and Rosie could help level the playing field for small companies. The e-commerce solution allows grocers to largely focus on their core grocery store business, improving the in-store experience and serving local market needs. But now they can also expand their digital and online efforts, benefiting from the tools, technology and support provided by Rosie.
According to a recent interview with Rosie co-founder and CEO Nick Nickitas by Inc. magazine, Rosie not only gives retailers an online platform, but also provides any needed storage and delivery materials, as well as technical support like delivery logistics, address validation, route optimization, omni-channel marketing and data analytics.
In keeping with the highly personalized service often associated with small, independent grocers, the retailers themselves will be responsible for picking the orders in their stores using what Rosie calls specially trained "Local Grocery Professionals." These employees are specially trained to select the highest quality products for Rosie customers, lending the spirit of small grocery to the e-commerce side of the operation.