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Jewel to begin online grocery service Tuesday

As competition heats up with online grocery shopping, Jewel-Osco plans to start its delivery service Tuesday.

Shoppers throughout the suburban area will have the option of ordering groceries online for delivery through a new e-commerce website, a Jewel spokeswoman said Thursday.

"This gives people another option when shopping for groceries," said Jewel-Osco President Doug Cygan. "The Jewel-Osco e-commerce department allows the company to come full circle because we began in 1899 delivering tea."

Eleven Jewel-Osco locations have been designated "pick stores" - customers can enter their ZIP code on a website to find the store that will fulfill their order. Of the 11 locations, six will also offer in-store pickup.

Delivery prices range from 95 cents to $9.95 on a minimum $49 order depending on the time of day and window of time selected. First-time customers will receive free delivery, and prices will be no different whether a customer shops in-store or online, according to the company.

Jewel-Osco purchased 60 new trucks, which will be used specifically for e-commerce and are equipped to accommodate fresh food delivery. Additionally, nearly 100 people were hired for the e-commerce department to fulfill orders.

Whole Foods' recent acquisition by Amazon is sending ripples through the online grocery industry. The number of shoppers is expected to jump 10 percent this year, and grocers are starting to make changes to follow the trend.

Grocery shopping is considered one of the final players in the e-commerce game. While consumers have embraced shopping for everything from shoes to shampoo online, shopping for food items has largely remained the mainstay of brick-and-mortar stores. With annual U.S. grocery sales at $602 billion, according to industry experts, it's a market that's crucial to the future.

Online grocery shopping sales grew about 11.3 percent between 2015 and 2016. The trend is expected to continue into a $100 billion industry by 2025, according to a sales and marketing agency report.

How much of an impact Amazon will have is unclear, but competitors are preparing.

Mariano's has introduced delivery service at some of its stores while Walmart offers online grocery shopping with pickup at a growing number of stores.

In addition, Meijer rolled out its online grocery shopping and home delivery. And Peapod, a veteran in the industry, is making changes as well. The company, with a large warehouse in Lake Zurich, recently announced it is moving its headquarters from Skokie to Chicago.

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