IGA's Online Grocery Strategy

This assignment analyzes the successful implementation of an online grocery strategy by IGA. It examines how IGA leveraged technology to enhance both in-store and online shopping experiences, leading to increased revenue generation, customer satisfaction, and a unique brand image within the retail industry.

RUNNING HEAD: E-Business Applications
E-Business Applications
IGA (Independent Grocers Alliance)

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Contents
Introduction................................................................................................................................2
About IGA (supermarkets).........................................................................................................2
IGA Online Experience..............................................................................................................2
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Introduction
Retail Business is in its big transformation phase. From offline to online, the business
model is now more concerned about customer engagement and impacted by the huge data
generated by customer during the purchase process (So et al., 2016). In this context, IGA
(Independent Grocers Alliance) is an important example as it has adopted offline and online
channel and redefining the high tech mix of Omni-channel retail.
About IGA (supermarkets)
IGA is an USA supermarket brand established in 1926 and operating in more than 30
countries. It works on franchise model. In Canada, it is supplied by Sobeys and in Australia it
is owned by Metcash. The alliance includes about 5000 supermarkets all over the world.
IGA, after a long journey from 1926 to 2010; it went digital in 2011. IGA stores got
personalised website and mobile application with in built feature of progressive shopper
marketing tool. IGA banner includes different other brands like IGA-extra, IGA-express and
IGA-mini. After introduction of online grocery shopping, the revenue of IGA has increased
by 15%. In 2015, IGA launched a brand new version of online grocery (IGA, 2017).
IGA Online Experience
The online grocery journey of IGA had started long back in 1996 in Canada, in
Quebec. Then at first go, 50 stores participated in that project and within first week 50 orders
were filled online. Now, in Canada, over one million orders are filled every year. There is a
dedicated team working for ensuring the better experience of online grocery at IGA. They
focus on the better delivery of grocery items at customer’s doorstep. IGA, through their
online mode always showcase local producers and made shopping experience more
personalised and convenient. In an era where being digital was considered be to out of
consideration zone, IGA has introduced it to retail business and got the first mover advantage

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in Canada. Consumers got first experience of online purchase of their daily grocery and
experienced the exciting convenience of online shopping (IGA, 2016).
To provide better online experience, IGA has strategically adopted its online grocery
in different platforms namely ‘online grocery’, ‘online buffet’, specific mobile app and tablet
app. IGA mobile app provides access to all products which are in stores and consumers can
place their orders and make a smart list with all information security. The smart lists enable
different shopping list, enabled modification of previous list, sharing of the list and then
secure payment option; altogether it redefines the online grocery purchase experience from
the aspect of planning and reality. IGA provides consultation option with option of weekly
recipes from their empaneled chiefs. To reward loyal customers, IGA recently launched IGA
Stamps and offers customer to redeem their collected IGA stamps in exchange with selected
items. IGA online shopping provides consumers a better experience in terms of providing
scan functionality, product recommendations, store locators and personalised flyer (Cardwell,
2015).
With this improved approach of serving customers in this data friendly and digital
world, IGA opens up huge opportunities in the context of understanding better consumer
insights and behaviours from their online purchasing behaviour. The online channel adoption
enabled IGA to provide better personal buying experience, interaction with providers, proper
feedback mechanism and a simplified purchasing experience (IGA, 2017).
With this Omni-channel approach IGA provides a broader scope of selection to their
customers, better reachability aspect and providing customers more personalised and
suggestive purchasing experience. Experts from IGA always regarded this investment in
online IGA project as creating lifetime customers for IGA. Recently launched IGA Go by
IGA is designed to meet shoppers’ need for an easy, simple and convenient online ordering
platform (IGA, 2017).
This online approach of consumer serving has provided a scope of learning about
consumer through using data analytics. IGA has widely adopted the use of data analytics tool
to know about the consumers’ choice, expectations, behaviour during online purchase and
many more complex aspects. All these amplified the opportunity of IGA to understand their
potential customer and prospects in better manner with regard to product offering and better
customer experience (Cardwell, 2015).

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IGA has redefined the in-store and online grocery purchasing experience through
adopting technology and implementing at every-level. It has provided them a position of
competitive advantage. In retail context, while other competitors’ were trying to improve in-
store experience, IGA have thought about adopting online grocery and provided customer a
wider variety of choice, easy, simple and enjoyable grocery purchasing experience (Melis et
al., 2015).
Conclusion
In conclusion, it can be said that adopting digital channel where the business model is
excessively dependent on physical channel, IGA had taken and successfully implemented the
digital channel. It has given IGA a better revenue generation opportunity, happy customer
base and unique brand image in the industry (Caprice & Rey, 2015).

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References
So, K. K. F., King, C., Sparks, B. A., & Wang, Y. (2016). Enhancing customer relationships
with retail service brands: The role of customer engagement. Journal of Service
Management, 27(2), 170-193.
IGA (2017). About IGA. Retrieved 25 September 2017, from
https://www.iga.com/about.aspx
Caprice, S., & Rey, P. (2015). Buyer power from joint listing decision. The Economic
Journal, 125(589), 1677-1704.
IGA (2016). IGA Launches New Program for Groceries Online. Retrieved 25 September
2017, from
https://www.iga.com/Corporate/Corporate_News/Press_Room/20160922_-
_IGA_Launches_New_Program_for_Groceries_Online.aspx
Cardwell, M. (2015). IGA improves online shopping experience. Retrieved 17 September
2017, from http://www.canadiangrocer.com/top-stories/iga-improves-online-ordering-
51853
Melis, K., Campo, K., Breugelmans, E., & Lamey, L. (2015). The impact of the multi-
channel retail mix on online store choice: Does online experience matter?. Journal of
Retailing, 91(2), 272-288.