Dollar Tree’s Family Dollar taps Instacart to make same-day deliveries
InstaCart employees fulfill delivery orders
Patrick T. Fallon | Bloomberg | Getty Images
Third-party delivery company Instacart announced Thursday that it would begin delivering Family Dollar owned by Dollar Tree, a discounter that has seen growth during the pandemic, on Thursday.
The company will deliver online purchases from over 6,000 Dollar chain locations to customers’ homes in just one hour.
“Whether it’s refilling the refrigerator or pantry, upgrading a home office or a virtual classroom, or buying everyday items for the home, we know value and affordability are a top priority for people across the country,” said Chris Rogers, vice president of retail at Instacart, in a press release.
Major retailers including Bed Bath & Beyond, Dick’s Sporting Goods, and Rite Aid have used Instacart to keep up with online ordering during the pandemic, using it as a faster alternative for customers who would otherwise have to wait for a package along the way Swarm of the holiday season.
Like many other retailers who saw sales decline during the pandemic, dollar stores like Dollar Tree and Dollar General have pushed forward aggressive expansion plans and a growing customer base as people seek value during the recession. Dollar Tree’s Family Dollar sells many household foods, such as groceries and stationery, that have seen higher demand as people spend more time at home.
Family Dollar’s sales in the same store rose 6.4% for the third quarter that ended October 31, 2020.
Mike Witynski, CEO of Dollar Tree, described the new partnership with Instacart as “yet another example of our efforts to better serve the evolving needs of our family dollar buyers.”
However, Instacart has come under pressure as some retailers are training their own employees to pick and pack online orders rather than using a third-party service. Walmart recently announced plans to convert some of its stores into local centers that use automation and store staff to complete online grocery orders.
Last month, Instacart announced it would cut around 1,900 job losses for in-store buyers.