Instacart’s newly appointed CEO, Chris Rogers, is urging grocery retailers to align their pricing for online orders with what customers pay in physical stores. Speaking at the Goldman Sachs Communacopia & Technology Conference, Rogers emphasized that affordability is a critical factor in boosting adoption of online grocery shopping.
“Affordability is probably the biggest unlock to online grocery adoption,” Rogers said, adding that price disparities drive customer churn. He noted that parity between in-store and online pricing would help retain shoppers, according to Grocery Dive.
Instacart is working with retail partners to develop pricing strategies, integrate loyalty programs, and promote weekly deals. Retailers that maintain price parity often outperform competitors that add online markups, Grocery Dive reported.
Data from Instacart shows retailers with consistent pricing have seen sales grow 10 percentage points faster over the past year than those with higher online prices. Retention rates are also stronger among customers shopping with price-parity retailers, the outlet noted.
Several grocers have already acted. Schnuck Markets, Heritage Grocers Group, and Lowe’s shifted toward price parity earlier this year. Walmart Canada has lowered online markups, while Costco has cut price differences on same-day delivery sites in the U.S. and Canada.
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