Canadian online grocery service Spud recently opened its first brick-and-mortar location. Spud—sustainable produce urban delivery—launched in 2010 and will now operate a physical store near downtown Vancouver.
Spud offers at-home delivery of groceries in British Columbia and Alberta, Canada, and in San Francisco and Los Angeles in the United States, Canadian Grocer reported.
The new physical store is called Be Fresh Local Market, owned by Spud's CEO Peter van Stolk. Van Stolk also owns four other physical stores that he calls market cafes, ranging between 1,000 and 1,500 sq. ft. He believes the benefits of a small-format stores include low rent and no parking lot fees. The cafes cater to those who want to shop and socialize.
Van Stol's theory is simple: On-demand delivery and smaller inventories, or smaller physical stores, means less waste and fresher food.
Although Spud still has a lot of competition, as at-home grocery delivery services such as Amazon Fresh (NASDAQ:AMZN), Peapod and FreshDirect continue to grow in popularity. Not to mention, specialty supermarkets such as Whole Foods and Sprouts continue to expand their physical locations.
The latest Be Fresh Local Market location is aimed at consumers who walk and bike. Van Stolk sees these physical spaces as a place for buying everyday essentials, while his online store is a place to order what shoppers do not need immediately.
Spud is also expanding its online business, which has doubled in the past three years. The new site, going live Sept. 15, includes everything from complete meals to snacks. Online orders are delivered the same day in most cities if placed before 11 a.m.
-See this Canadian Grocer article
Peapod launches produce box delivery service
Seattle grocery store partners with Instacart for delivery
Amazon rumored to open drive-up grocery store
Peapod rolls out new mobile features
Online grocery sales to quadruple by 2023