Now Blue Apron Sells its Meal Kits to Costco Stores to reach more customers
Blue Apron is setting an example by reaching out to Costco stores on how to extend reach to more customers who are available offline. After having a successful show on the online front, the meal delivery portal, is targeting to reach the regular brick-and-mortar buyers by stocking its products at the most famous grocery stores running in the state. It is an attempt to fight the rising competition in the industry and still emphasizes the fact that online and offline wings are necessary for a successful business.
Blue Apron is one of the companies that delivers meal kits at homes to let the families join and have meals together. However, now, there are plentiful of competitors in the industry offering vegan food to meaty delights for all types of customers.
Last year, the company reported a sale of 786,000 by the end of March which led to the growth of its share price up to 9.5% to $2.50. Company’s financial has gained faith its increasing number of customers is also attracting others. It also displayed a growth in the revenue from $236 or last year’s to $250 in the current year ending. Not only this, it also out beat the expected loss which was predicted to be around 24 cents, though, the company reported a loss of 17 cents a share.
The company is trying lot many things to improve its position and recently worked towards improving the operational problems at a warehouse in New Jersey. It also narrowed down its losses by cutting on packaging and food waste. Automation at its New Jersey plant also cut down the labor cost. The CEO expects a break even by the next year. He further added that the company has introduced two new item likes the beef stir-fry and chick tacos which will entice the users and will compel them to go for subscriptions. He soon plans to stock his meal kits at more Costco stores.
The company is also charging less for the meal kits at Costco stores than what it charges for home deliveries. Its officials are in talks with other retailers and grocery stores to stock its products. The result would be announced sometime later this year. However, it should be noted that competition has increased significantly in the grocery stores who are now storing ready-to-end food in order to compete with the restaurants. There are more of fresh food available in the shelves offered by many other manufacturers.
Though Blue Apron has taken a wise decision to offer its meal kits on the shelves in super market and grocery stores, it has to face the hard competition among dozens of contenders. Now, only the quality can keep it apart from its competitors.