Woodman’s Food Markets Deploys Online Shopping

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Woodman’s Food Markets Deploys Online Shopping

By Jamie Grill-Goodman - 02/24/2016
Supermarket operators are seeking to add online shopping capabilities to maintain their revenues and market share as grocery shopping moves online at a fast-growing pace. Woodman’s Markets in Wisconsin, a chain of 16 high volume and large format stores, choose GrocerKey to provide their online shopping services.

The Woodman’s store in Madison, WI, was selected to roll out the new service first, the store acting as a hub for the Madison market with all store pickup and home delivery orders being fulfilled from that location.
 
Many retailers underestimate the effort required to set up a digital store. GrocerKey spent time working with the Woodman’s team to identify and review all the requirements needed to power up the retailer’s new digital store. The process began with identifying needed data, both initial and ongoing, creating processes for moving the data between GrocerKey and Woodman’s systems, and identifying any required systems integration.
 
GrocerKey worked with Woodman’s POS dealer to create an integration that enables it to send online transactions back into Woodman’s systems. GrocerKey handles payment processing for online orders through its system, all payment related capabilities are PCI compliant.
 
From an operations perspective, physical order picking in the store is vitally important. Order picking represents hard costs so the process must be made as efficient as possible. To that end, GrocerKey scanned every item in the Woodman’s store, coding each product for location so they are able to route
order pickers as efficiently as possible through the store. This efficiency was especially important given the massive size of Woodman’s stores. In addition, any equipment needed for picking multiple orders at once, handheld scanners, and such were secured.
 
GrocerKey and Woodman’s then identified dedicated space in the store to be used as a staging area where orders are held awaiting pickup by the customer or being sent out for delivery. GrocerKey’s ‘chill chain’ method does not require holding staged orders in coolers or freezers, using instead dry ice and
ice blankets. This method also eliminates refrigeration in the delivery vehicle helping to control or minimize costs. In this deployment GrocerKey was responsible for providing staff to pick the orders, handle store pickups, and do home delivery.
 
Given the limited investment in marketing, the online shopping service has grown organically, driven by word of mouth and the referral and email capabilities within the GrocerKey platform. Online orders have grown 250% from the first full month to the fourth full month of operation. Experience so far
shows that 80% of orders are for home delivery, the other 20% being for store pickup. The retailer is also seeing that the average online order is approximately 500% larger than the average in-store transaction.
The trend appears to be that this gap is growing even wider as the average online order size continues to grow.
 
GrocerKey’s online shopping solution was successfully deployed at Woodman’s Markets and is supporting a steadily growing number of orders each week. Online orders are 4-5 times larger than the average in-store transaction. The technology is positioning Woodman’s to successfully service the shopper across both brick & mortar and online as the supermarket industry
moves into the digital future.