How to Future-Proof a Profitable, Delightful Grocery Delivery Experience
Whether you’re launching a new service, expanding into new markets, or working toward profitability at scale, this blog draws on lessons from grocers like Ahold Delhaize (one of the few to make e-commerce profitable on a fully allocated basis) alongside market data, operational benchmarks, and a practical roadmap you can adapt to your own operations.
This post is the third installment in our grocery delivery series. In Part One, we explored how delivery has become the growth engine for modern grocery. In Part Two, we examined the hidden costs of relying on third-party platforms.
This part focuses on building delivery infrastructure that can scale with your business. Whether you’re launching a new service, expanding into new markets, or working toward profitability at scale, this blog draws on lessons from grocers like Ahold Delhaize (one of the few to make e-commerce profitable on a fully allocated basis) alongside market data, operational benchmarks, and a practical roadmap you can adapt to your own operations.
How Ahold Delhaize Turned Delivery Infrastructure Into Profit
One of the clearest proof points that delivery infrastructure can be both scalable and profitable comes from Ahold Delhaize, parent of Food Lion, Stop & Shop, Hannaford, and other banners.
In the first half of 2025, Ahold reported e-commerce profitability on a fully allocated basis, which is a rare feat in grocery. In Q2 alone, online sales grew 5.7% in the U.S. and more than 12% in Europe, with the company achieving record online market share in the Netherlands. Loyalty program adoption and omnichannel customer growth also reached new record levels.
Here’s how they did it:
- Asset-light fulfillment: Leveraging store-based picking to maximize existing square footage and labor.
- Automation and scale: Deploying their proprietary Prism platform across all banners for consistent efficiency.
- Same-day pickup and gig partnerships: Adding flexibility and reach without overextending capital.
- Strategic private label expansion: Investing $1 billion in pricing and 300+ new items to drive margin.
- Retail media as a complement, not the driver: Using media for profitability, not as a crutch.
Ahold’s leaders drove profitability by investing in infrastructure, controlling costs, and shaping demand, while avoiding reliance on third parties. Their discipline and ownership of the customer journey turned delivery from a cost center into a growth engine.
Why Infrastructure Matters Now: Market Dynamics
Delivery is growing fast, and the economics are unforgiving. Without the right infrastructure, scaling volume often means scaling losses.
- U.S. e-grocery sales reached $8.7 billion in May 2025, up 27% year over year.
- Delivery led this growth with a 70% jump to $3.9 billion, accounting for nearly half of all e-grocery volume.
- Pickup declined 3.6%, while ship-to-home grew 20.7% (Brick Meets Click).
- By July 2025, monthly e-grocery sales hit $10 billion, with delivery up 36% to $4.3 billion, pickup up 24% to $4 billion, and ship-to-home up 10% to $1.6 billion (Digital Commerce 360).
Delivery is becoming the primary way many customers shop. That growth compounds operational pressure.
- Delivery costs often range from $10–$25 per order.
- Picking costs alone add $8–$10 in labor per order (McKinsey).
For a grocer processing tens of thousands of orders each week, even a $2 increase in cost per order can mean millions lost annually. Infrastructure that can manage fulfillment, labor, and last-mile orchestration efficiently protects profitability at scale.
Understanding Your Starting Point
Before deciding how to scale delivery, you need to know where you stand today. Our grocery delivery maturity curve outlines four typical stages:
- Local Delivery Skeptic: Limited investment in delivery, often relying on in-store dominance or small tests.
- Local Delivery Outsourcer: Heavy use of one third-party provider to meet demand quickly, but with tradeoffs in cost, control, and data.
- Simple Orchestration Adopter: Some routing and provider control, but optimization is basic and reactive.
- Data-Driven Orchestration Leader: Fully aligned delivery strategy with business goals, owned data, and resilient, scalable operations.
Most grocers move through these stages over several years. Knowing your current stage helps you focus on the right next steps. Whether that’s establishing a baseline, gaining control over orchestration, or fine-tuning for profit.
A Stage-by-Stage Framework for Scaling Delivery
Not every grocer is starting from the same place. This framework helps you identify where you are and what to prioritize next—paired with examples from leaders who have navigated each stage successfully.
Think of these stages as a roadmap. Grocers can’t skip straight to profitability without first establishing control and visibility. The fastest-growing grocers are the ones who treat each stage as a foundation for the next, not as an isolated project.
The Core Building Blocks of Scalable Delivery
Every profitable delivery model is built on a similar foundation. Before chasing scale, make sure these pieces are in place:
- Orchestration Engine: A single control point for delivery rules, time windows, and capacity allocation
- Flexible Fulfillment Mix: A blend of store picking, micro-fulfillment centers, and partner fleets to match demand patterns
- Picking Optimization: From store layout adjustments to substitution rules and staging workflows
- Branded Communications and Data Capture: Keep all customer touchpoints in your ecosystem to protect loyalty and data
- Continuous Experimentation: Test delivery pricing, substitution policies, and retention offers, then scale what works
- Private Label + Media Synergy: Use high-margin products and media monetization to improve order profitability
When these building blocks work together, they create a platform for scaling volume without sacrificing margins.
Your Launch Plan and ROI Calculator
The fastest-growing grocers move with speed and discipline: identifying their current stage, acting on the right priorities, and measuring impact in weeks, not years.
This interactive plan gives you stage-specific actions you can start today, plus an ROI calculator to show exactly what your investment in infrastructure could return.
How to use the launch plan and calculator
Step 1: Select your current delivery maturity stage.
Step 2: Get your tailored action plan.
Step 3: Use the ROI calculator to project your potential annual savings and margin growth.
Why Getting Delivery Right Matters
The e-grocery market is projected to reach nearly $120 billion annually by 2028, capturing about 12.7% of total grocery sales. Each point of market share equals millions in revenue—if the economics work. A $2–$3 swing in cost per order can determine whether delivery is profitable or a loss.
Ahold proves profitability doesn’t require slowing down or diluting customer experience. It requires infrastructure built to maximize assets, control the customer relationship, and flex with demand. Their blend of store-based fulfillment, orchestration, and a mix of owned and partner fleets is a model regional grocers can adapt today.
Own the infrastructure, own the profit.