Peapod Growing Sales With Mobile

Virtual grocery stores engage commuters, who spent an average of $10 or more per mobile device-triggered transaction than those who ordered via a computer.

SKOKIE, IL – Online grocer Peapod said its recent mobile ad campaign targeting commuters has generated a huge usage increase in the retailer’s mobile shopping app.

Over the past year, orders involving a smartphone and mobile device grew 50% for the online grocer, with 30% of all visits to now involving a mobile device, reports Supermarket News.

Peapod attributed the growth to a 12-week campaign that launched last fall and combined advertising with mobile technology, targeting train stations in Philadelphia, Boston, Chicago, the greater New York area and Washington, DC.

As commuters waited for their trains, they could scan a QR code on a “grocery aisle” billboard to download Peapod’s shopping ad, and then use the app to scan product barcodes, purchase items and schedule a delivery.

Peapod partnered with major CPG companies, including Barilla, Coca-Cola, Kimberly-Clark, Procter & Gamble and Reckitt Benckiser on the virtual store promotion.

According to Peapod, commuters who used the app spent on average at least $10 more than those who placed orders online. “This means more, better shoppers buying CPG brands via Peapod mobile,” the retailer said.

Peapod’s success with its virtual store promotion indicates e-commerce is growing in prominence for retailers, experts said.

“E-commerce in grocery is re-emerging as a strategic initiative following the blow-ups of Webvan” and others, said Jim Hertel, a managing partner at Willard Bishop, cautioning “I think everyone has more realistic expectations about how difficult the challenges are and how precise they must be to make it a profitable and viable proposition.”

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