A Canadian grocery and pharmacy chain says it will close 22 stores and launch home delivery in Toronto in December and Vancouver in January. Retailer Loblaw says Instacart, based in California, will be its partner in home delivery of food purchased over the internet, said Canadian Press.
Loblaw chief executive Galen Weston said the company expects “a very difficult year” in 2018. The grocery sector is under pressure from discount and online competitors. All the same, Weston said the home delivery initiative “is a premium service targeted at customers who are looking for the ultimate in convenience.” The shoppers will pay a delivery fee, said Instacart. They also will pay a 7.5 percent service fee, said the grocery chain.
“Canadians currently have few options for grocery deliveries,” said Canadian Press. “However, Amazon’s recent acquisition of Whole Foods Market increased speculation that Canada’s grocers would have to step up on home delivery offerings.” Instacart says it aims to serve 80 percent of U.S. households and will have a similar goal in Canada, which would mean operating in 20 to 25 cities.