Farmstead Partnered with Alex Lee to Expanded into the Carolinas
Grace Mahas — September 20, 2019 — Business
References: farmsteadapp & retailcustomerexperience
As more consumers seek convenience when shopping for products, specifically food delivery, online grocery delivery service Farmstead expanded its services to the Carolinas. This expansion is thanks to a new partnership with Southeast grocery company Alex Lee -- the parent company of Lowes Foods and Merchants Distributors.
This new expansion will allow both brands to expand their customer base without the need of opening any brick-and-mortar locations thanks to Farmstead's micro-hub sales model. The micro-hubs only take eight months to build -- compared to the two years a physical supermarket can cost -- and are a fraction of the price. Farmstead then uses the micro-hubs as a central warehouse and will only deliver within a 50-mile radius to streamline efficiency and reduce costs.
As the retail model of grocery store shifts to a delivery model, we can expect to see further partnerships between grocery stores and grocery delivery services.
This new expansion will allow both brands to expand their customer base without the need of opening any brick-and-mortar locations thanks to Farmstead's micro-hub sales model. The micro-hubs only take eight months to build -- compared to the two years a physical supermarket can cost -- and are a fraction of the price. Farmstead then uses the micro-hubs as a central warehouse and will only deliver within a 50-mile radius to streamline efficiency and reduce costs.
As the retail model of grocery store shifts to a delivery model, we can expect to see further partnerships between grocery stores and grocery delivery services.
Trend Themes
1. Convenience Shopping - The trend of consumers seeking convenience when shopping for products, including food delivery, creates opportunities for innovative online grocery delivery services.
2. Micro-hub Sales Model - The adoption of micro-hub sales models by online grocery delivery services like Farmstead presents a disruptive innovation opportunity for streamlining efficiency and reducing costs in the industry.
3. Partnerships Between Grocery Stores and Delivery Services - The shift from retail grocery stores to delivery models is driving partnerships between traditional grocery stores and grocery delivery services, creating opportunities for collaborations and market expansion.
Industry Implications
1. Online Grocery Delivery - The expansion of online grocery delivery services like Farmstead into new regions presents disruptive innovation opportunities for the industry to meet increasing consumer demand for convenient food shopping.
2. Southeast Grocery Company - As online grocery delivery expands, Southeast grocery companies like Alex Lee can leverage partnerships to increase their market reach and strengthen their competitive position in the industry.
3. Retail Grocery - The shift towards delivery models in the grocery industry creates opportunities for traditional retail grocery stores to collaborate with delivery services and adapt their business models to meet changing consumer preferences.
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