Jessica Guynn interviews Mitchell Rhoads, the new president of GroceryWorks, Safeway’s online grocery division.
Rhodes believes the online grocery business could pay off for Safeway. Though online groceries account for just 1 percent to 2 percent of sales, some researchers predict supermarkets could eventually reap 5 percent of sales from online operations.
“It’s not unreasonable to think we could get 4 to 6 percent of the total grocery business over the long haul,” Rhodes said. “The best analogy I can use is the mail-order business. It’s a little different, but mail-order penetration rates are that high. I think it can be a very healthy business.”