The company reported a loss of $ 210.1 million in its recently closed fiscal year, as customer orders fell as a result of a decrease in commercialization. The study concluded that 75% of dollar sales of food kits come from “quick kits,” which contain all the ingredients and only take one or two steps to prepare.īlue Apron’s change to offering its products in-stores occurs as the company continues to fight the costs of marketing and retail, as well as the operating costs of packaging and delivery.
“In-store kits require less commitment than a pre-paid subscription and offer more flexibility for retailers and suppliers to experiment with components and ‘levels’ of convenience that keep consumers coming back,” Nielsen said in the report. Nielsen said that for consumers, in-store meal kits offer unique advantages over those offered through subscription delivery services. In a recent study, Nielsen confirmed that although the majority of meal kits are bought online, meal-kits in-store sales grew rapidly in the past year, an increase of 26.5%, a $154.6 million. and Publix Super Markets, have already launched their own brands of food kits in stores. Several other retailers, including Kroger Co. The move also comes as Walmart recently announced that it would launch food kits, which will be prepared directly at each store, to 2,000 of its deli departments this year. based in Minneapolis could be a good choice as a distribution partner for Blue Apron, given Target’s network of urban locations and its tendency to partner with well-known brands that have a strong consumer reputation.īy moving to distribution in stores rather than simply through deliveries based on online subscriptions, Blue Apron would join suppliers of food kits such as Plated, which was acquired by Albertsons last year and is being launched at retail stores of that company and Purple Carrot, which has made its food kits available in select Whole Foods stores. Some sources speculated that Target Corp. “Access to consumers will be much faster and more extensive with this new strategy than what we have been operating in the past,” said Blue Apron CEO Brad Dickerson. Blue Apron, the online subscription food kits company, announced that they will offer their kits to supermarket chains starting at the end of this year, according to reports, since the company is struggling to make a profit through their delivery service model.īlue Apron, based in New York, but has been in talks with several retail food chains, including some that already sell their own food kits in stores, according to the Wall Street Journal through Blue Apron executives.
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