Lansing-based Quality Dairy, which operates 30 stores in central Michigan, today announced it has signed an agreement with Vroom Delivery, an ecommerce platform for the convenience store industry.
The deal is part of a larger trend of online grocery delivery, which today represents 5 percent of the $641 billion food market (around $32 million). But annual sales are forecasted to reach $100 million by 2025, according to Nielsen and the Food Marketing Institute.
“In 1936, Quality Dairy innovated by replacing the milkman with a lower-cost solution: neighborhood stores,” says John Nelson, CEO of Quality Dairy. “As the definition of convenience has changed, we realized that it was time to bring the milkman back.
“This time he also brings beer, wine, and other staples. Other chains will need to do the same to remain competitive with the rise of new entrants in the space.”
Amazon and Whole Foods, shifting consumer preferences, and an increasing priority on convenience will fuel radical changes in shopping in the coming years, Nelson adds.
Under the service, individual stores manage all inbound ecommerce through Vroom’s online portal. Chain management accesses tools to manage the entire ecommerce function, including delivery radius, delivery fees, pricing, promotions, and inventory.
“Vroom allows convenience stores to easily implement their own ecommerce system within a matter of weeks for very little upfront cost,” Nelson says.
Vroom Delivery launched with western Michigan’s 52 Wesco convenience stores in April. With Vroom, Quality Dairy now offers home delivery within an eight-mile radius of each store for over 2,000 products: alcohol, ice cream and treats, bakery items, fresh sandwiches, and household staples.