James Tenser

Publix is Back Online

August 10, 2010

FROM RETAILWIRE:
Publix closed its PublixDirect online grocery and home delivery service in August 2003, just two years after the service launched, due to insufficient volume. Now, the grocery chain is back with a test of an online grocery service, but this one will only include curbside pickup. Will Publix Curbside be successful where PublixDirect was not?      [more...]

Publix's new online ordering concept is hardly a revolution. It merely reflects the spectrum of service options that shoppers have learned to expect today. I foresee an evening rush at the pick-up lanes where working moms queue up for their orders on their way home.

As others here observe, online ordering with curbside pickup is a whole 'nother animal compared with solutions incorporating home delivery. For delivery schemes, the "cold chain" issue raised above is just one complication. There are also the challenges of managing multi-stop routes, fleet and fuel costs, delivery appointments, and unattended home access.

Cold (and hot) temperatures are less difficult to control in a store pickup scenario. The store must simply provide an appropriate holding area for orders. Also the online shopping list, cart and payment methodologies are well established now, with mobile device integration already available "off the shelf" to retailers who want to provide this option.

Of course, Publix knows all of this from its prior experience, so we may infer it is making prudent choices in designing its new offering. For me, this seems like a very easy call. Even if less than 5% of orders are picked up this way, the costs and risks are low and the shopper receives a desired service advantage. I predict success.