InstaCart employees take delivery orders
Patrick T. Fallon | Bloomberg | Getty Images
Third-party delivery company Instacart said on Thursday that it would start making same-day deliveries to Dollar Tree, owned by Family Dollar, a discount retailer that grew during the pandemic.
The company will deliver online purchases to customers’ homes in more than 6,000 locations in the dollar store chain in just one hour.
“Whether stocking the fridge or pantry, improving a home office or virtual school space, or buying essential items for everyday life at home, we know that value and accessibility are the main concerns of people across the country,” said Chris Rogers, vice president of retail at Instacart, in a press release.
Major retailers, including Bed Bath & Beyond, Dick’s Sporting Goods and Rite Aid, used Instacart as a way to track online orders during the pandemic and as a faster alternative for customers who would otherwise have to wait for a package during the crush of the holiday season.
As many other retailers saw sales drop during the pandemic, dollar stores, like Dollar Tree and Dollar General, have moved forward with aggressive expansion plans and have had a growing customer base as people seek value during the recession. Dollar Tree’s Family Dollar sells many basic household products, such as food and paper products, which have been in greater demand as people spend more time at home.
Family Dollar same-store sales increased 6.4% in the third quarter, ended October 31, 2020.
Dollar Tree CEO Mike Witynski considered the new partnership with Instacart “another example of our efforts to better serve the evolving needs of Family Dollar customers”.
However, Instacart has come under pressure as some retailers train their own employees to select and package orders online instead of using third-party service. Walmart recently announced plans to transform part of some stores into local centers that use automation and store employees to complete online grocery orders.
Last month, Instacart said it planned to cut about 1,900 jobs lost to shoppers in stores.