InstaCart employees fulfill delivery orders
Patrick T. Fallon | Bloomberg | Getty Images
Third-party delivery company Instacart said on Thursday that it would make same-day deliveries for Family Dollar owned by Dollar Tree, a discount retailer that saw growth during the pandemic.
The company will deliver online purchases to customers at more than 6,000 stores in the dollar chain within an hour.
Chris Rogers, vice president of retail, said: “whether we’re gathering the fridge or the pantry, improving a home office or virtual school space, or buying everyday necessities at home; 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 keep track of online orders during the pandemic and used it as a faster alternative for customers who would otherwise have to wait for a package during the rush of the holiday season.
As many other retailers saw sales decline during the pandemic, dollar stores such as Dollar Tree and Dollar General continued with aggressive expansion plans and had a growing customer base as people sought value during the recession. Dollar Tree’s Family Dollar sells many household staples, such as food and stationery, which are in greater demand as people spend more time at home.
Sales of the same store for Family Dollar increased by 6.4% in the third quarter, ending October 31, 2020.
Dollar Tree CEO Mike Witynski called the new partnership with Instacart “another example of our efforts to better meet the evolving needs of our Family Dollar buyers.”
However, Instacart is under pressure because some retailers are training their own employees to pick and pack orders online rather than using the third-party service. Walmart recently announced plans to make part of some stores in local centers that use automation and in-store employees complete online grocery orders.
Last month, Instacart said it plans to reduce about 1,900 shopping job losses.