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Lidl tests on-demand delivery with new partnership

German discount grocer Lidl is turning to third-party expertise to pilot on-demand grocery delivery in the U.S.

Lidl is partnering with Boxed, warehouse club-styled online retailer that sells groceries, household products and other items by bulk, to offer delivery of groceries online from its stores in as little as three hours. The six-month pilot program kicks off next month at Lidl stores in Staten Island, NY and Powder Springs, Georgia.

The grocer will leverage Boxed’s proprietary ordering technology and Boxed Express on-demand delivery service. Customers will be able to browse Lidl’s assortment and inventory of snacks, fresh produce, beverages, and home essentials. Upon checkout, shoppers can schedule a two-hour delivery window to receive their groceries in person. Boxed shoppers will then shop and deliver groceries online from Lidl stores, with delivery in as little as three hours.

In the future, Lidl will be able to leverage Boxed’s three nationwide fulfillment centers, buy-online-pick-up-in-store capabilities, and smart optimization feature which predicts when shoppers will most likely run low on a particular product, offer recommendations for shopping, and prompt automatic reordering.

Online grocery delivery is an increasingly popular service, led by some major retail players. Amazon has been steadily increasing the number of Whole Foods stores that offer online delivery. Walmart, Kroger, and Stop and Shop have been raising the stakes even higher with pilots of grocery delivery via autonomous vehicle.
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