I Want It, Where I Want It
By Ron Lunde / November 2017Insights
Not too long ago, my local McDonald’s spent a lot of money to expand their drive-through to two lanes in an effort to reduce customer wait time for their customers. They even created an App for Smart Phone orders.
Recently they installed an ‘Order Kiosk’, a digital aid to assist customers in placing their orders when in-store. No standing in line.
Earlier this week I visited my local McDonald’s. To my surprise they attached the red sign seen in the picture to the left to the Order Kiosk introducing an Uber Eats app that facilitates … McDelivery! McDonald’s now delivers???
Why? Well, let’s look at some numbers. Delivery, it appears, is now a retailer ‘must have’.
A recent consumer survey by the National Retail Federation / Prosper Insights and Analytics, indicated that holiday spending will be up a robust 3.4% compared to last year. However, for the first time in survey history, 59% of consumers cited online as the most popular shopping destination. 94% of respondents indicated that they would take advantage of free online shipping while 49% said they would take advantage of buy online/pickup-in-store offers. Are those numbers transferring to every day shopping patterns?
If you look at the chart below, over 7,500 people participated in a national survey that indicated the growing interest in and use of pick up in store services. 47% of survey respondents said they use in-store pickups on a regular or ‘considering it’ basis. When you look at Walmart’s numbers at 61% of their survey respondents who said they use in-store pickups on a regular or ‘considering it’ basis—then you understand why Walmart, Department Stores, Grocers, and Fast Food Operators are investing so much in in-store pick up or direct to home delivery services.
Contributed by Ron Lunde, Senior Marketing and Advertising Executive & Market Strategy Consultant
Ron held senior management positions in grocery retailing including Supervalu, Grand Union and Price Chopper. He was also a Sr. VP. at the Leo Burnett Advertising agency. Ron is credited with introducing Space and Category Management systems to the industry as well as working with the Price Chopper team to introduce and deploy the first data driven frequent shopper program in the US. He was also a consultant to the Financial Accounting Standards Board in developing the Issues that govern the accounting requirements for all trade promotion and marketing expenditures. Lunde currently serves as a Market Strategy consultant to retailers and CPG brands.