Safeway.com has lowered its everyday delivery fee to $6.95, promising same-day delivery when orders are placed before 10 a.m. In addition, the company is promising what it calls “28 Day Price Locks,” with guaranteed low prices on selected brands and SKUs.
Safeway.com is a co-venture between Safeway in the US and Tesco of the UK.
Safeway.com is a co-venture between Safeway in the US and Tesco of the UK.
- KC's View:
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There continues to be interesting activity in this sector from both Safeway and Albertsons, and we believe it will carry-over to some of the smaller regional retailers offering online grocery.
Lowering delivery fees is the natural evolution in the sector, as retailers try and figure out how low they can go and still make money. As we’ve said many times in this space, we believe that free delivery eventually will be a cost of doing business…so it will be fascinating to watch the machinations and manipulations as retailers try to figure out how to make it work.