Belgian supermarket chain Delhaize has launched the first delivery subscription for groceries in Belgium. The Delivery+ formula guarantees customers unlimited home deliveries at no extra cost, following in the footsteps of Amazon Prime and other foreign examples.
Four formulas
Online shoppers who choose the Delivery+ formula will have their groceries delivered to their door at no delivery charge, as often as they want but at specific delivery times. Shoppers can opt for a three- or twelve-month subscription and then choose a favourite delivery time. Delhaize then keeps that favourite time slot free. In addition, for each order of at least 120 euros, customers will receive a free product.
There are four different formulas possible, depending on the duration (three or twelve months) and the range of free deliveries. The cheapest option gives free deliveries from Tuesday to Thursday only, the more expensive package promises free deliveries from Monday to Saturday. Prices range from 10 to 16.5 euros per month.
With this formula, Delhaize is responding to the increasing purchasing frequency of online customers. According to the retailer, the subscription formula is already advantageous from two or three orders per month, as the ‘normal’ delivery cost is at least 5.95 euros per order – although there are often promotions that take away this cost. For the time being, Delivery+ is available in the cities of Antwerp, Brussels, Ghent, Leuven and Liège. If the subscription formula proves successful, it will be extended to other cities and regions.
Loyal customers
Delhaize is the first food retailer to launch a delivery subscription service in Belgium, but other retailers have already implemented similar schemes in other markets. Carrefour has launched a subscription for large deliveries in France, where customers not only get the delivery costs for free, but also receive a 5 % discount. In the Netherlands, Jumbo is testing a subscription where participants can place a maximum of one order per day without delivery costs. Albert Heijn has the omni-channel formula ‘Mijn Albert Heijn Premium’ which offers customers all kinds of benefits.
This great interest is no coincidence. After all, subscription formulas guarantee companies fixed, recurring revenues. Subscribers are usually the most loyal and valuable customers for a retailer.
