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Walmart, Loblaws face off over home delivery of groceries

The Star - Business
FRANCINE KOPUN , Business reporter Nov 15th, 2017 , , ,

Loblaws launches GTA home delivery of groceries as Walmart expands its service.

Two of Canada’s largest retailers said Wednesday they are launching and expanding grocery home delivery, but using quite different models and price points.

Loblaw Companies Limited announced a partnership with Instacart to provide a premium service, delivering groceries in as little as an hour, and at a premium price.

The service, launching in Toronto Dec. 6, will charge a delivery fee, plus a service fee of 7.5 per cent of the order. The delivery fees will start at $3.99 and will vary depending on the size of the order and the delivery time selected.

Shoppers will be able to buy online from Loblaws, Real Canadian Superstore and T&T stores.

They will shop using Instacart’s website and mobile phone app, and the groceries will initially be priced higher than those purchased online through Loblaw’s existing Click & Collect program or in-store, although efforts are being made to keep that price difference as slight as possible, according to an Instacart spokesperson.

Walmart Canada, which has been testing grocery delivery in the Toronto area since the spring, said it will expand the program in December, using crowd-sourced delivery services Daily Delivery and JoeyCo. It will also use Walmart trucks.

Only next-day delivery is available through Walmart. There will be a single fee of $9.97 for orders over $50. Groceries will be ordered from the Walmart.ca website and will not be priced higher than items in store.

“We’re an efficient operator,” said Walmart Canada Corp. spokesperson Al Roberton.

Two of Canada’s largest retailers said Wednesday they are launching and expanding grocery home delivery, but using quite different models and price points.

Loblaw Companies Limited announced a partnership with Instacart to provide a premium service, delivering groceries in as little as an hour, and at a premium price.

The service, launching in Toronto Dec. 6, will charge a delivery fee, plus a service fee of 7.5 per cent of the order. The delivery fees will start at $3.99 and will vary depending on the size of the order and the delivery time selected.

Shoppers will be able to buy online from Loblaws, Real Canadian Superstore and T&T stores.

They will shop using Instacart’s website and mobile phone app, and the groceries will initially be priced higher than those purchased online through Loblaw’s existing Click & Collect program or in-store, although efforts are being made to keep that price difference as slight as possible, according to an Instacart spokesperson.

Walmart Canada, which has been testing grocery delivery in the Toronto area since the spring, said it will expand the program in December, using crowd-sourced delivery services Daily Delivery and JoeyCo. It will also use Walmart trucks.

Only next-day delivery is available through Walmart. There will be a single fee of $9.97 for orders over $50. Groceries will be ordered from the Walmart.ca website and will not be priced higher than items in store.

“We’re an efficient operator,” said Walmart Canada Corp. spokesperson Al Roberton.

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