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In short order
Online-to-door grocery-delivery market finding a local niche
PANAMA CITY, FL — Gerald Hendrix wants to deliver groceries to your door.
“Our service is saving you time and eventually saving you money,” Hendrix said.
Bay Food 2 U is one of two active, local online businesses that takes grocery orders online, then shops and delivers the order. The delivery service is perfect for tourists driving in from out of town, working moms and the elderly, Hendrix said.
Hendrix came up with the idea two years ago after vacationing in Georgia and waiting in line at a store. He designed his Web site, which went up in February. So far, he has had about 50 customers.
The idea for online grocery sales or delivery is not new. Most online grocery stores have a brick-and-mortar building, but niche delivery is available. Online grocery sales account for less than 1 percent of total sales, which were $350 billion in 2008. Sales are growing at a good rate year after year, Leslie Hand, IDC Retail Insights research director, wrote in an e-mail.
Destin has had an online grocery delivery business since 2004. During the past five years, The Beach Butlers has served about 1,000 new customers, owner Bobbi Griggs said.
Griggs doesn’t stop with just groceries. She has put up a Christmas tree and has put together gift baskets with cheese and wine. Her company has grown 60 to 70 percent every year from 2004 to 2007. Numbers for 2008 are not complete, Griggs said, but figures should show growth despite the recession.
Consumer-direct online shopping and home delivery is a growing market, according to a market analysis by Time Merchants. The market might be growing because most homes generally have two wage earners and a high number of shoppers say they dislike their shopping experiences.
Delivery services such as Bay Food 2 U and The Beach Butlers cut out overspending by limiting that last-minute purchase and saves parents valuable time, Hendrix and Griggs said.
“Moms love us,” Griggs said.
Busy, working parents can go online, make a few clicks and expect their groceries delivered when they want. Vacationers can find snacks waiting on them and drinks already cooling in the refrigerator.
“People are realizing that it is a valuable asset,” Griggs said. “The moment they walk through the door, their vacation begins.”
The Beach Butlers has prices geared for the tourist industry, Griggs said. The company charges $35 an hour to shop and a 20-percent charge on top of the final grocery bill. At Bay Foods 2 U, Customers must spend at least $75 on groceries with a 15-percent charge on the total bill and a $10 delivery fee.
“Everybody is very happy about (the online delivery service),” Hendrix said. “I even have a few repeat customers. They trust us, and we provide a good service for them.”






