Trader Joe’s is ending its New York-area grocery delivery service, and the company has no plans to roll out delivery in other markets.
The grocery chain offered delivery in New York for 10 years. Trader Joe’s is ending the program on March 1, in part because it was too costly, the company told Business Insider.
“Instead of passing along unsustainable cost increases to our customers, removing delivery will allow us to continue offering outstanding values — quality products for great everyday prices, and to make better use of valuable space in our stores,” Trader Joe’s representative Kenya Friend-Daniel said.
“This was not a decision we made lightly. We value our customers and all that they do to come shop with us.”
The company’s decision to end its limited delivery program comes at a time when many other major grocery chains are investing heavily in online grocery.
Online grocery sales in the US are outpacing the overall grocery market and are expected to reach $60 billion in 2023 — up from $24 billion in 2018, according to data from the Institute of Grocery Distribution cited by Internet Retailer.
Walmart is expected to offer grocery delivery from 1,600 locations and curbside pickup from 3,100 locations by the end of fiscal 2020. Amazon recently started rolling out same-day delivery and pickup from Whole Foods stores across the US.
Dozens of other grocery chains have partnered with third-party services like Instacart to offer delivery, as well, including Kroger, Costco, Publix, Wegmans, Aldi, and more.
Trader Joe’s offers some non-perishable goods, like its famous cookie butter, on Amazon. But for everything else, shoppers — for now at least — must continue trekking to Trader Joe’s stores, filling their own carts, and waiting in check-out lines.
Source: Business Insider