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businessEconomy

Dallas-Fort Worth shoppers embrace the rise of curbside grocery pickup

Curbside is viewed as a solution for households with busy schedules.

Dallas-Fort Worth shoppers were early adopters of one of the fastest-growing categories of the grocery business, curbside pickup, according to a new report from Cowen & Co. Walmart started curbside in D-FW in October 2015. Kroger followed quickly in the summer of 2016. Both have more than a 1,000 stores offering online grocery shopping with curbside pickup. Target offers it now, too, and Amazon has expanded it to 30 cities but hasn't said to how many Whole Foods Markets. By 2020, curbside will be 5% of the total grocery market, or a $35 billion slice, Cowen said.

Who offers curbside

Walmart, Target, Kroger, Whole Foods and others are spending to expand curbside to more stores.

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Everybody's trying it

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Less friction is a buzz phrase in retailing these days. Sure, there's less if you don't even have to enter the store. By last year, 14% of Americans had tried curbside pickup.

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"We see some great demographics. Its features appeal to a new generation of shoppers. Baskets start online, enabling the Walmarts and Targets to know what you bought previously. They can really drive personalization. Retail is a service, and curbside outsources the shopping. That's a major trend as we think about the on-demand economy for a new generation of shoppers."

Oliver Chen, managing director, Cowen and Company

Phones make it a breeze

Once again, smartphones are the catalyst. A computer in your pocket is making curbside viable.

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"Kroger has 87 locations (in D-FW) with curbside now and plans to add nine more in 2019. Based on daily feedback through digital surveys, our customers enjoy the convenience of pickup. The customer has also discovered they are a more intentional shopper, meaning they complete their shopping list in a single visit as opposed to multiple visits."

Heath Hill, e-commerce manager, Kroger's Dallas region

Younger, wealthier adopters

Cowen found that curbside pickup adoption continues to grow with higher-income households and younger ones.

"I continue to hear from young people who have adopted curbside. Many prefer it to home delivery because they can time it on their way home. While it started here with Walmart and Kroger, Target and Central Market also offer it here. Once again the biggest retail innovations are coming from the grocers."

Maria Halkias, staff writer, The Dallas Morning News

SOURCES: Cowen and Co.; Kroger; Amazon

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Twitter: @MariaHalkias