Harris Teeter dangles incentives for online grocery subscription

Harris Teeter has ushered in an incentive-laden subscription option as part of a new fee structure for its ExpressLane Online Shopping service.

The Matthews, N.C.-based grocer, part of The Kroger Co., said yesterday that going forward it will waive the service fee on all ExpressLane pickup and delivery orders over $100 and offer a tiered service-fee structure of $4.95 for orders of $25 to $49.99 and $2.95 orders of $50 to $99.99.

Before the change to an order value-based approach, a $4.95 service fee was applied to all online grocery orders, which require a minimum purchase of $25.

Harris Teeter said it also will waive the service fee on ExpressLane orders for shoppers ages 60 and older on Thursdays from 9 a.m. to 2 p.m. and offer $4.95 delivery during that time span.

ExpressLane Delivery service, not offered through all stores, carries an additional cost. On top of the service fee, delivery orders include a $9.95 delivery fee for purchases of $50 or more and an $11.95 fee for orders less than $50.

Meanwhile, Harris Teeter shoppers can receive new member-only incentives by purchasing an annual or monthly ExpressLane subscription. The memberships cost $99.95 for an annual subscription and $16.95 for a monthly subscription.

ExpressLane annual subscription members get the $25 minimum order restriction waived plus a half-price delivery fee of $4.95. Members also receive exclusive discounts and offers, double fuel point rewards and 5% off purchases of Harris Teeter-brand products. Monthly ExpressLane enrollees get the $25 minimum order waiver, double fuel points and 5% discount on Harris Teeter-brand items.

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Harris Teeter’s subscription incentives reflect a trend of grocery retailers trying to lock up followings of loyal, omnichannel shoppers via membership programs, à la Amazon’s successful Prime customer benefits plan, which also extends to the e-tail giant’s Whole Foods Market subsidiary. Retailers now offering or piloting such options include Walmart (Walmart ), The Kroger Co. (Delivery Savings Pass), Albertsons Cos. (Unlimited Delivery Club), Publix Super Markets (Club Publix), Ahold Delhaize USA’s The Giant Company, Hy-Vee (Hy-Vee Plus) and SpartanNash (Fast Lane), among others.

Along with ExpressLane, Harris Teeter partners with Shipt and Instacart for same-day online grocery delivery. Overall, the chain operates about 250 stores in North Carolina, South Carolina, Virginia, Georgia, Maryland, Delaware, Florida and the District of Columbia.