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To offer consumers lower prices on everything from toilet paper to Uncrustables, Gopuff is bulking up.
The 15-minute grocery delivery company this week debuted GoXL, a new nationwide initiative offering 300+ bulk-sized products that reach up to 50% cheaper per unit prices compared to its single-serve items. The items will still be delivered to customers’ doors, with a 30-pound weight limit for bike deliveries.
Gopuff’s VP of merchandising Carly Bickerstaff told Retail Brew that GoXL is the delivery platform’s response to consumers’ concerns over the uncertainty of tariffs and the rising cost of goods.
“Cost of living seems to be more expensive than ever, and we’re very, very aware how important value is currently to our customer and is going to continue to be,” Bickerstaff said. “We’re trying to change this idea that a delivery app and convenience and speed means that they’re going to have to spend more.”
Gopuff owns all inventory it sells, which gives it the ability to adapt pricing, she noted, and it works to be competitive with big box retailer pricing. Buying a 10-pack of Uncrustables ($9.99) creates 50% savings when compared to buying one ($1.99), while switching from a single Pop-Tart ($1.99) to a 6-pack ($5.89), saves 51%. Other offerings include 30-packs of Bud Light, 24-packs of Nissin Top Ramen, and bottled water from its Basically brand, 12-packs of Barbells Protein Bars, Basically toilet paper, and beverages like Coca-Cola and Spindrift, and 8-packs of Campbell’s chicken noodle soup.
While GoXL has required a merchandising and buying strategy shift, Gopuff has also simply begun selling whole packs of products it used to break down to sell for single-serve. While basket sizes will be larger, margins are lower, so Gopuff won’t save money with this initiative, Bickerstaff said.
As uncertainty around the impact of Trump’s tariffs on consumers’ grocery bills linger, some consumers have been heading to big box retailers like Costco. Bickerstaff hopes GoXL pushes consumers to see Gopuff as a grocery “stock-up moment” rather than a “for me, for now moment,” a use-case that’s increasingly showing up in GoPuff searches over the last two years.
“This is our answer to what’s going on,” she said. “No one knows for sure where all of this is going to land, and that’s really scary for our customers and our consumers who might see a potential change in how much their day-to-day items cost.”
This report was originally published by Retail Brew.
This story was originally featured on Fortune.com
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https://fortune.com/article/gopuff-debuts-tariff-resistant-program-bulk-sized-products-50-percent-cheaper/
Erin Cabrey, Retail Brew
