Tools commonly used in the Grocery Pickup-Curbside (Retail) industry for day-to-day tasks and operations.

• Online ordering platform
• Mobile app
• Inventory management software
• Customer relationship management software
• Point of sale system
• Barcode scanner
• Handheld device for order picking
• Refrigerated storage units
• Delivery vehicles
• GPS tracking system

Common products and services typical of NAICS Code 445110-09, illustrating the main business activities and contributions to the market.

• Grocery pickup at Walmart
• Kroger curbside pickup
• Target Drive Up
• H-E-B Curbside
• Meijer Curbside
• Publix Curbside Pickup
• Safeway Drive Up & Go
• Albertsons Drive Up & Go
• Hy-Vee Aisles Online
• Giant Eagle Curbside Express

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

• Servsafe Food Handler Certification: This certification is required for employees who handle food in the industry to ensure that they have the knowledge and skills to maintain food safety. The certification is provided by the National Restaurant Association and can be obtained through their website.
• OSHA Safety Certification: This certification is required for employees who work in the industry to ensure that they have the knowledge and skills to maintain safety in the workplace. The certification is provided by the Occupational Safety and Health Administration and can be obtained through their website.
• Hazard Analysis and Critical Control Points (HACCP) Certification: This certification is required for businesses that handle food to ensure that they have a food safety management system in place. The certification is provided by the International HACCP Alliance and can be obtained through their website.
• Food Allergen Certification: This certification is required for employees who handle food in the industry to ensure that they have the knowledge and skills to prevent cross-contamination and properly label allergens. The certification is provided by the National Restaurant Association and can be obtained through their website.
• Safe Quality Food (SQF) Certification: This certification is required for businesses that handle food to ensure that they have a food safety management system in place. The certification is provided by the Safe Quality Food Institute and can be obtained through their website.

A concise historical narrative of NAICS Code 445110-09 covering global milestones and recent developments within the United States.

• The "Grocery Pickup-Curbside (Retail)" industry has its roots in the early 2000s when online grocery shopping started gaining popularity. However, it was not until the mid-2010s that the industry started to take off. In 2013, Walmart launched its grocery pickup service, followed by Kroger in 2014. In 2015, Amazon launched AmazonFresh Pickup, and in 2016, it launched Amazon Go, a cashierless grocery store. In recent years, the COVID-19 pandemic has accelerated the growth of the industry as consumers have turned to online grocery shopping to avoid crowded stores and reduce the risk of infection. In the United States, the "Grocery Pickup-Curbside (Retail)" industry has seen significant growth in recent years. According to a report by Brick Meets Click, the industry grew by 300% in 2020, with sales reaching $6.6 billion in November 2020. The COVID-19 pandemic has been a major driver of this growth, as consumers have turned to online grocery shopping to avoid crowded stores and reduce the risk of infection. In response, retailers have expanded their pickup and delivery services, with many offering contactless options to further reduce the risk of infection. Overall, the industry has seen rapid growth in recent years, and this trend is expected to continue in the coming years.

The anticipated future trajectory of the NAICS 445110-09 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

• Growth Prediction: Growing

  The future outlook for the Grocery Pickup-Curbside (Retail) industry in the USA is positive. The COVID-19 pandemic has accelerated the adoption of online grocery shopping and curbside pickup, which has led to a surge in demand for these services. According to a report by Brick Meets Click, online grocery sales in the US reached $9.3 billion in January 2021, up 15% from November 2020. The report also predicts that online grocery sales will continue to grow and reach $250 billion by 2025. This growth is expected to benefit the Grocery Pickup-Curbside (Retail) industry, as more retailers are expected to offer these services to meet the growing demand. Additionally, advancements in technology, such as the use of artificial intelligence and machine learning, are expected to improve the efficiency and accuracy of these services, further driving growth in the industry.

Recent groundbreaking advancements and milestones in the Grocery Pickup-Curbside (Retail) industry, reflecting notable innovations that have reshaped its landscape.

• Walmart: In 2020, Walmart launched Walmart+, a subscription-based service that offers free delivery on groceries and other items, as well as discounts on fuel and access to mobile scan-and-go checkout. This service is expected to increase customer loyalty and drive sales for the company.
• Kroger: In 2020, Kroger launched a contactless payment option for curbside pickup orders, allowing customers to pay for their orders through their mobile devices. This innovation improves the convenience and safety of the curbside pickup experience for customers.
• Target: In 2019, Target acquired Shipt, a same-day delivery service, to expand its online grocery offerings. This acquisition has allowed Target to offer same-day delivery of groceries and other items to customers in more than 1,500 stores across the US.
• Instacart: In 2020, Instacart launched a new feature called "Leave at My Door Delivery," which allows customers to have their groceries delivered without any physical contact with the delivery person. This innovation improves the safety and convenience of the delivery experience for customers.
• Amazon: In 2020, Amazon launched Amazon Fresh, a grocery delivery service that offers free delivery on orders over $35 for Prime members. This service is expected to increase Amazon's share of the online grocery market and drive sales for the company.

This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Grocery Pickup-Curbside (Retail) industry. It highlights the primary inputs that Grocery Pickup-Curbside (Retail) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Service

Customer Support Services: Support services that assist customers with inquiries or issues related to their online orders, ensuring a positive shopping experience.

Delivery Management Software: Software that helps manage and optimize the logistics of grocery pickups, ensuring timely and organized service for customers.

Inventory Management System: A system that tracks stock levels and product availability, crucial for ensuring that popular items are always in stock for online orders.

Online Ordering System: A digital platform that allows customers to select and purchase groceries online, facilitating a seamless shopping experience and efficient order management.

Equipment

Barcode Scanners: Devices used to quickly scan items during the order fulfillment process, enhancing accuracy and efficiency in preparing orders for pickup.

Curbside Pickup Signage: Signs that clearly indicate designated pickup areas, helping customers easily locate where to collect their orders.

Mobile Payment Processing Devices: Devices that enable secure and convenient payment transactions at the curbside, ensuring quick service and customer satisfaction.

Material

Cleaning Supplies: Essential products used to maintain cleanliness and hygiene in the pickup area, contributing to a safe environment for both staff and customers.

Packaging Supplies: Materials such as bags and boxes used to securely package groceries for customers, ensuring items remain intact and fresh during transport.

Temperature-Controlled Storage Units: Refrigerated or frozen storage solutions that maintain the quality and safety of perishable items until they are picked up by customers.

Explore a detailed compilation of the unique products and services offered by the Grocery Pickup-Curbside (Retail) industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the Grocery Pickup-Curbside (Retail) to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Grocery Pickup-Curbside (Retail) industry. It highlights the primary inputs that Grocery Pickup-Curbside (Retail) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Service

Contactless Payment Options: This service allows customers to pay for their orders online or through a mobile app, ensuring a safe and efficient transaction process during curbside pickup.

Curbside Pickup Service: Customers can schedule a time to pick up their groceries without leaving their vehicle, enhancing convenience and safety by minimizing contact with others during the shopping process.

Online Grocery Ordering: This service allows customers to browse and select grocery items through a website or mobile app, providing a convenient way to shop from home without the need to physically visit the store.

Order Customization: Customers can customize their grocery orders based on dietary restrictions or preferences, ensuring they receive products that meet their specific needs.

Personal Shopper Assistance: Some grocery pickup services offer personal shopper assistance, where staff members help select items based on customer preferences, ensuring satisfaction with the order.

Real-Time Order Updates: This service provides customers with notifications regarding their order status, including when their groceries are being prepared and when they are ready for pickup, enhancing the overall shopping experience.

Material

Bakery Items: Freshly baked bread, pastries, and other baked goods are available for online ordering, providing customers with the option to enjoy quality bakery products without the hassle of in-store shopping.

Beverages: A variety of drinks, including juices, sodas, and bottled water, are available for online ordering, allowing customers to easily replenish their beverage supplies.

Canned and Packaged Goods: This category includes non-perishable items such as canned vegetables, soups, and snacks, which are essential for pantry stocking and can be easily ordered for curbside pickup.

Dairy Products: This includes milk, cheese, yogurt, and other dairy items that are essential for many households, allowing customers to easily add these staples to their grocery orders.

Fresh Produce: A wide variety of fruits and vegetables are available for customers to order online, ensuring they receive fresh and high-quality produce that can be picked up at their convenience.

Frozen Foods: A selection of frozen meals, vegetables, and desserts can be ordered online, offering convenience for customers looking to stock their freezers with quick meal options.

Household Essentials: Items such as cleaning supplies, paper products, and personal care items can be included in grocery orders, making it convenient for customers to stock up on necessary household goods.

Meat and Poultry: Customers can select from a range of fresh meats and poultry products, which are packaged and ready for pickup, catering to various dietary preferences and cooking needs.

Snacks and Treats: A wide range of snacks, including chips, cookies, and candy, can be ordered online, catering to customers looking for quick and convenient snack options.

A thorough examination of the Grocery Pickup-Curbside (Retail) industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.

Political Factors

Economic Factors

Social Factors

Technological Factors

Legal Factors

Economical Factors

An in-depth look at the Grocery Pickup-Curbside (Retail) industry's value chain, highlighting its role, key activities, and efficiency strategies, along with its unique value drivers and competitive strengths.

Value Chain Position

Category: Retailer
Value Stage: Final
Description: This industry operates as a retailer, focusing on the final stage of the value chain where groceries are sold directly to consumers. It provides a convenient shopping experience by allowing customers to order online and pick up their groceries without leaving their vehicles.

Upstream Industries

Downstream Industries

Primary Activities

Inbound Logistics: Inbound logistics involve receiving inventory from suppliers and managing stock levels in-store. Efficient storage practices ensure that products are easily accessible for order fulfillment. Quality control measures include inspecting incoming goods for freshness and compliance with safety standards, addressing challenges such as spoilage through proper inventory rotation.

Operations: Core operations include processing online orders, picking items from shelves, and preparing them for customer pickup. Staff are trained in efficient picking methods to minimize errors and ensure quality. Quality management practices involve regular audits of picked items to ensure they meet customer expectations, alongside adherence to industry standards for food safety.

Outbound Logistics: Outbound logistics focus on the organization of curbside pickup processes, including scheduling and managing customer arrivals. Quality preservation during delivery is maintained by ensuring that perishable items are stored at appropriate temperatures until pickup. Common practices include using designated parking areas for easy access and efficient service.

Marketing & Sales: Marketing strategies often involve online promotions, loyalty programs, and partnerships with local businesses to attract customers. Customer relationship practices emphasize communication through apps or websites, providing updates on order status and promotions. Sales processes typically include easy navigation of online platforms for a seamless shopping experience.

Support Activities

Infrastructure: Management systems include inventory management software that tracks stock levels and order fulfillment processes. Organizational structures often consist of dedicated teams for online order processing and customer service, ensuring efficient operations. Planning systems are crucial for forecasting demand and managing inventory effectively.

Human Resource Management: Workforce requirements include trained staff for order picking and customer service roles. Training programs focus on technology use, customer interaction, and food safety standards. Industry-specific skills include familiarity with grocery products and efficient order processing techniques.

Technology Development: Key technologies include mobile apps for order placement and tracking, as well as inventory management systems that integrate with point-of-sale systems. Innovation practices focus on enhancing user experience through app updates and new features that streamline the ordering process. Industry-standard systems often involve data analytics to optimize inventory and sales strategies.

Procurement: Sourcing strategies involve establishing relationships with local suppliers and wholesalers to ensure a diverse product range. Supplier relationship management is essential for maintaining quality and reliability in inventory. Purchasing practices often emphasize cost-effectiveness and sustainability in sourcing decisions.

Value Chain Efficiency

Process Efficiency: Operational effectiveness is measured through metrics such as order accuracy and pickup wait times. Common efficiency measures include tracking the speed of order fulfillment and customer satisfaction ratings. Industry benchmarks are established based on average pickup times and order accuracy rates.

Integration Efficiency: Coordination methods involve regular communication between grocery stores, suppliers, and logistics providers to ensure alignment on inventory levels and order fulfillment. Communication systems often include integrated software platforms that facilitate real-time updates on stock availability and order status.

Resource Utilization: Resource management practices focus on optimizing labor usage during peak hours and minimizing waste through efficient inventory management. Optimization approaches may involve scheduling staff based on demand forecasts and implementing strategies to reduce spoilage of perishable goods, adhering to industry standards for efficiency.

Value Chain Summary

Key Value Drivers: Primary sources of value creation include convenience, time savings, and the ability to provide a wide selection of quality products. Critical success factors involve maintaining high customer satisfaction through efficient service and product availability, alongside effective marketing strategies to attract new customers.

Competitive Position: Sources of competitive advantage include the ability to offer a seamless online shopping experience and efficient curbside pickup service. Industry positioning is influenced by local market dynamics and the ability to adapt to changing consumer preferences, impacting overall market competitiveness.

Challenges & Opportunities: Current industry challenges include managing inventory effectively to meet fluctuating demand and ensuring timely service during peak times. Future trends may involve increased demand for contactless shopping options, presenting opportunities for growth in curbside services and the expansion of product offerings to meet evolving consumer needs.

A focused SWOT analysis that examines the strengths, weaknesses, opportunities, and threats facing the Grocery Pickup-Curbside (Retail) industry within the US market. This section provides insights into current conditions, strategic interactions, and future growth potential.

Strengths

Industry Infrastructure and Resources: The industry benefits from a robust infrastructure that includes well-established grocery stores equipped with designated pickup areas. This strong infrastructure facilitates efficient operations and enhances customer satisfaction, as retailers invest in optimizing their facilities to streamline the pickup process.

Technological Capabilities: Technological advancements in online ordering systems and mobile applications provide significant advantages. The industry is characterized by a strong level of innovation, with many retailers utilizing proprietary platforms that enhance user experience and operational efficiency, ensuring competitiveness in the market.

Market Position: The industry holds a strong position within the retail grocery sector, with a growing market share driven by increasing consumer demand for convenience. Brand recognition and customer loyalty contribute to its competitive strength, although competition from alternative delivery services is intensifying.

Financial Health: Financial performance across the industry is generally strong, with many retailers reporting healthy profit margins and stable revenue growth. The financial health is supported by consistent demand for grocery pickup services, although fluctuations in operational costs can impact profitability.

Supply Chain Advantages: The industry enjoys robust supply chain networks that facilitate efficient procurement and distribution of groceries. Strong relationships with suppliers and logistics providers enhance operational efficiency, allowing for timely delivery of products to customers and reducing costs associated with inventory management.

Workforce Expertise: The labor force in this industry is skilled and knowledgeable, with many workers trained in customer service and logistics management. This expertise contributes to high service standards and operational efficiency, although there is a need for ongoing training to keep pace with evolving technologies.

Weaknesses

Structural Inefficiencies: Some retailers face structural inefficiencies due to outdated inventory management systems or inadequate staffing during peak hours, leading to longer wait times for customers. These inefficiencies can hinder competitiveness, particularly when compared to more agile competitors.

Cost Structures: The industry grapples with rising costs associated with labor, technology investments, and compliance with health regulations. These cost pressures can squeeze profit margins, necessitating careful management of pricing strategies and operational efficiencies.

Technology Gaps: While many retailers are technologically advanced, others lag in adopting new systems for order management and customer engagement. This gap can result in lower productivity and higher operational costs, impacting overall competitiveness in the market.

Resource Limitations: The industry is vulnerable to fluctuations in the availability of key resources, particularly during peak shopping seasons. These resource limitations can disrupt service delivery and impact customer satisfaction.

Regulatory Compliance Issues: Navigating the complex landscape of food safety and health regulations poses challenges for many retailers. Compliance costs can be significant, and failure to meet regulatory standards can lead to penalties and reputational damage.

Market Access Barriers: Entering new markets can be challenging due to established competition and regulatory hurdles. Retailers may face difficulties in gaining necessary permits or meeting local regulations, limiting growth opportunities.

Opportunities

Market Growth Potential: There is significant potential for market growth driven by increasing consumer demand for convenient shopping options. The trend towards online grocery shopping and curbside pickup presents opportunities for retailers to expand their services and capture new market segments.

Emerging Technologies: Advancements in logistics technologies, such as automated inventory management and real-time tracking systems, offer opportunities for enhancing operational efficiency. These technologies can lead to improved customer experiences and reduced operational costs.

Economic Trends: Favorable economic conditions, including rising disposable incomes and a shift towards convenience-oriented lifestyles, support growth in the grocery pickup sector. As consumers prioritize convenience, demand for these services is expected to rise.

Regulatory Changes: Potential regulatory changes aimed at promoting online shopping and reducing barriers for grocery retailers could benefit the industry. Companies that adapt to these changes may gain a competitive edge in expanding their market presence.

Consumer Behavior Shifts: Shifts in consumer preferences towards convenience and time-saving solutions create opportunities for growth. Retailers that align their service offerings with these trends can attract a broader customer base and enhance brand loyalty.

Threats

Competitive Pressures: Intense competition from both traditional grocery stores and emerging delivery services poses a significant threat to market share. Retailers must continuously innovate and differentiate their services to maintain a competitive edge in a crowded marketplace.

Economic Uncertainties: Economic fluctuations, including inflation and changes in consumer spending habits, can impact demand for grocery pickup services. Retailers must remain agile to adapt to these uncertainties and mitigate potential impacts on sales.

Regulatory Challenges: The potential for stricter regulations regarding food safety and consumer protection can pose challenges for the industry. Retailers must invest in compliance measures to avoid penalties and ensure service quality.

Technological Disruption: Emerging technologies in alternative shopping methods, such as drone delivery and automated kiosks, could disrupt the market for grocery pickup services. Retailers need to monitor these trends closely and innovate to stay relevant.

Environmental Concerns: Increasing scrutiny on environmental sustainability practices poses challenges for the industry. Retailers must adopt sustainable practices to meet consumer expectations and regulatory requirements.

SWOT Summary

Strategic Position: The industry currently enjoys a strong market position, bolstered by robust consumer demand for grocery pickup services. However, challenges such as rising costs and competitive pressures necessitate strategic innovation and adaptation to maintain growth. The future trajectory appears promising, with opportunities for expansion into new markets and service enhancements, provided that retailers can navigate the complexities of regulatory compliance and supply chain management.

Key Interactions

Growth Potential: The growth prospects for the industry are robust, driven by increasing consumer demand for convenient shopping options. Key growth drivers include the rising popularity of online grocery shopping, advancements in logistics technologies, and favorable economic conditions. Market expansion opportunities exist in both urban and suburban areas, particularly as consumers seek out time-saving solutions. However, challenges such as resource limitations and regulatory compliance must be addressed to fully realize this potential. The timeline for growth realization is projected over the next five to ten years, contingent on successful adaptation to market trends and consumer preferences.

Risk Assessment: The overall risk level for the industry is moderate, with key risk factors including economic uncertainties, competitive pressures, and supply chain vulnerabilities. Industry players must be vigilant in monitoring external threats, such as changes in consumer behavior and regulatory landscapes. Effective risk management strategies, including diversification of suppliers and investment in technology, can mitigate potential impacts. Long-term risk management approaches should focus on sustainability and adaptability to changing market conditions. The timeline for risk evolution is ongoing, necessitating proactive measures to safeguard against emerging threats.

Strategic Recommendations

An exploration of how geographic and site-specific factors impact the operations of the Grocery Pickup-Curbside (Retail) industry in the US, focusing on location, topography, climate, vegetation, zoning, infrastructure, and cultural context.

Location: Urban and suburban areas are ideal for grocery pickup services due to higher population densities, which increase customer accessibility and demand. Locations near major highways facilitate efficient customer access and reduce travel time for pickups. Regions with a strong digital infrastructure support online ordering systems, enhancing customer experience and operational efficiency. Areas with a diverse demographic profile often see higher engagement with curbside services, as they cater to varying consumer preferences and lifestyles.

Topography: Flat terrains are advantageous for grocery pickup operations, allowing for easy access to facilities and efficient traffic flow for pickup vehicles. Locations with ample parking space are crucial to accommodate the volume of customers utilizing curbside services. In hilly or mountainous regions, accessibility may be hindered, affecting the efficiency of service delivery. Urban areas with well-planned road networks support quick and easy access for customers, while rural locations may face challenges due to limited infrastructure.

Climate: Mild climates enhance the appeal of curbside pickup services, as customers are more likely to utilize these services year-round without the deterrent of extreme weather conditions. Seasonal variations, such as winter storms or heavy rainfall, can impact customer willingness to travel for pickups, necessitating robust planning for peak times. Facilities may need to invest in weather protection measures for both staff and customers during adverse weather, ensuring a seamless pickup experience regardless of climate challenges.

Vegetation: Proximity to green spaces can enhance the customer experience, providing a pleasant environment for pickup operations. However, facilities must manage vegetation to prevent pest issues and ensure compliance with local environmental regulations. Landscaping around pickup areas should be designed to minimize maintenance while providing aesthetic appeal. Additionally, local ecosystems may influence operational practices, requiring facilities to adopt sustainable landscaping practices that align with environmental stewardship goals.

Zoning and Land Use: Zoning regulations typically require commercial designations for grocery pickup operations, with specific allowances for parking and customer access. Local land use regulations may dictate the size and layout of pickup areas, ensuring they do not disrupt surrounding residential zones. Permits for signage and operational hours are often necessary to comply with local ordinances. Variations in zoning laws across regions can affect the feasibility and design of curbside pickup services, necessitating careful planning and compliance.

Infrastructure: Reliable transportation infrastructure is critical for grocery pickup operations, as it facilitates efficient customer access and delivery logistics. Adequate parking spaces specifically designated for curbside pickup are essential to minimize congestion and enhance customer satisfaction. Utility needs include robust internet connectivity for online ordering systems and sufficient electrical capacity for refrigeration and other operational requirements. Communication infrastructure must support real-time updates for customers regarding their order status and pickup readiness.

Cultural and Historical: Community acceptance of grocery pickup services is influenced by local shopping habits and historical preferences for traditional grocery shopping. Areas with a strong emphasis on convenience and time-saving solutions tend to embrace curbside services more readily. Social factors, such as the presence of families or busy professionals, can drive demand for these services. Historical ties to local grocery stores may also affect how new pickup services are perceived, with established businesses needing to adapt to changing consumer preferences.

A detailed overview of the Grocery Pickup-Curbside (Retail) industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.

Market Overview

Market Size: Large

Description: This industry encompasses the retail sale of groceries where customers order items online or via mobile applications and pick them up at designated locations without leaving their vehicles. It focuses on convenience and efficiency in grocery shopping.

Market Stage: Growth. The industry is experiencing growth as more consumers adopt online grocery shopping and curbside pickup services, driven by the increasing demand for convenience and time-saving solutions.

Geographic Distribution: National. Operations are widespread across urban and suburban areas, with a concentration in regions with high population density where demand for convenience is greater.

Characteristics

Market Structure

Market Concentration: Moderately Concentrated. The market features a mix of large supermarket chains and smaller independent retailers, with larger chains typically having more resources to invest in technology and infrastructure.

Segments

Distribution Channels

Success Factors

Demand Analysis

Demand Drivers

Competitive Landscape

Entry Barriers

Business Models

Operating Environment