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Can H Mart Become a Top Contender in the Grocery Arena?
H Mart, the biggest Asian-American supermarket chain in the United States, has just partnered with VTEX, a composable and complete commerce platform, and VML, a global creative agency, to enhance H Mart’s e-commerce operations.
This collaboration involved migrating H Mart from its legacy platform to VTEX’s modern SaaS commerce platform, consolidating its dry and fresh goods into a unified online experience. The new platform allows customers to order both shelf-stable and fresh products in a single cart and provides real-time inventory information.
“Our team really prioritized a quick go-to-market time to get our new online stores up and running, and VTEX and VML made it happen. They’ve been instrumental in our digital growth journey, helping us deliver the best online shopping experience to our diverse set of customers. We are excited about the future and the opportunities this new platform will bring to our customers.”
Vince Colatriano, Executive Vice President at H Mart, via PR Newswire
Key features of the new system include VTEX’s pick and pack app for efficient in-store order fulfillment, precise product visibility based on customer location, and integration with H Mart’s SAP ERP for inventory management and payment processing. This upgrade is part of H Mart’s broader digital transformation strategy, aimed at improving the online shopping experience and expanding its market presence.
Furthermore, H Mart has just recently announced a delivery partnership with Uber, which will expand its delivery services to 78 H Mart locations. This also means that customers will be able to order groceries from H Mart through the Uber Eats app via HMart.com powered by Uber Direct. Much like other grocery delivery services, H Mart will offer same-day, scheduled, and on-demand options.
In May, H Mart also announced that it is opening a new 16,860-square-foot food court at the American Dream complex in the Meadowlands, making it the largest H Mart food hall in the Northeast. The food hall will feature 11 diverse vendors offering various cuisines and specialties, including BBQ Chicken, Don Don Curry, Gold Miss, Gong Cha, Jeong’s Noodle, K-Town Hero, Let Them Talk, Sang’s Tofu & Grill, The Bao, Tous les Jours, and Wok Bar.
This expansion continues H Mart’s growth, with over 100 stores across 18 states. The company also purchased a large storefront in the Oceanview Village Shopping Center in San Francisco, California.
As of November 2023, the top 10 grocery companies by revenue according to Foodindustry.com are:
- Walmart Inc.
- The Kroger Co.
- Costco Wholesale Corporation
- Albertsons Cos. Inc.
- Ahold Delhaize USA
- Publix Super Markets Inc.
- H-E-B
- Amazon
- Target Corporation
- Meijer Inc.
Walmart is also upping the ante after announcing plans to boost its grocery network by building five high-tech perishable distribution centers in California, Illinois, New Jersey, South Carolina, and Texas. It is also automating four existing facilities and upgrading older ones to improve storage and processing.
If H Mart were to make its way up the rankings into the top 10, then it would be the only supermarket on the list that sells primarily Asian groceries and items.
Discussion Questions
What are the broader implications of H Mart’s enhanced e-commerce, expanded delivery services, and new food halls for customer experience and market reach in the grocery sector, particularly for stores offering ethnic or specialized products?
How might the integration of modern SaaS platforms like VTEX impact competitive dynamics among top grocery chains, especially with specialized retailers like H Mart expanding digitally?
With Walmart’s new high-tech distribution centers and automation upgrades, how could this redefine industry standards and challenge smaller or niche grocery retailers?