Dollar Tree's Family Dollar taps Instacart to make same-day deliveries

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InstaCart employees fulfill orders for delivery
Patrick T. Fallon | Bloomberg | Getty Images

Third-party delivery company Instacart said Thursday that it will start making same-day deliveries for Dollar Tree-owned Family Dollar, a discount retailer that’s seen growth during the pandemic.

The company will deliver online purchases to customers’ homes from the dollar store chain’s over 6,000 locations in as quick as an hour.

“Whether stocking up the fridge or pantry, enhancing a home office or virtual school space, or buying everyday at-home essentials, we know value and affordability are top of mind for people across the country,” said Chris Rogers, vice president of retail at Instacart, in a press release.

Major retailers, including Bed Bath & Beyond, Dick’s Sporting Goods and Rite Aid, have used Instacart as a way to keep up with online orders during the pandemic and used it as a faster alternative for customers who would otherwise have to wait for a package during the crush of the holiday season.

As many other retailers saw sales drop during the pandemic, dollar stores like Dollar Tree and Dollar General have pressed ahead with aggressive expansion plans and had a growing customer base as people look for value during the recession. Dollar Tree’s Family Dollar sells many household staples, such as food and paper goods, that have seen higher demand as people spend more time at home.

Same-store sales for Family Dollar increased 6.4% in the third quarter, ended Oct. 31, 2020.

Dollar Tree’s CEO Mike Witynski called the new partnership with Instacart “another example of our efforts to better meet the evolving needs of our Family Dollar shoppers.”

However, Instacart has been squeezed as some retailers train their own employees to pick and pack online orders rather than using the third-party service. Walmart recently announced plans to turn part of some stores into local centers that use automation and store employees to complete online grocery orders.

Last month, Instacart said it planned to cut about 1,900 job losses for in-store shoppers.

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