蘑菇AV

Amazon explores standalone subscriptions as Prime user growth slows: The retailer could roll out separate grocery and healthcare membership services as early as this year.

How brands can grow digital grocery sales in 5 charts. How retailers can use discount, dollar store strategies to protect their grocery share.

US ecommerce growth will come from large retail categories with historically low online sales share. And growth will stay healthy even as traditional drivers of online sales take a backseat to emerging categories.

Our annual report on ecommerce in Canada highlights our most recent forecasts for all flavors of retail, including brick-and-mortar, digital buying, and mobile commerce.

Much of its success has come from its rapidly growing digital grocery business, which accounts for more than 62% of its ecommerce sales in 2023. Digital grocery is one area where Walmart is actually beating Amazon. This year, Walmart will capture more than 28% of the US digital grocery market鈥攎aking it the leading player in the industry鈥攃ompared with just 22% for Amazon.

In 2020, when the pandemic caused digital grocery sales to skyrocket, Walmart grew its online grocery business by nearly 80%. While digital remains a small fraction of Walmart鈥檚 overall grocery sales, we expect it will continue to grow faster than its in-store sales.

Click and Collect Will Drive Digital Grocery Growth. Click and collect鈥檚 explosive pandemic-era growth has tailed off, but for groceries the outlook is brighter. Grocery click-and-collect sales increased by 16.3% last year and will grow by 15.1% this year. These figures solidly outpace the metrics for overall click-and-collect growth.

Grocery shoppers are omnichannel shoppers, our analyst Blake Droesch said on a recent 鈥淏ehind the Numbers: Reimagining Retail鈥� podcast. That means consumer packaged goods (CPG) brands should employ a mix of digital and in-store advertising strategies to engage customers where they shop.

More users in grocery, games, dating, banking, and other categories may lead to better first-party data for advertisers and more diverse mobile app ad inventory, which currently is dominated by the triopoly of Meta, Google, and Amazon. Additional grocery and retail apps, in particular, should drive more inventory in retail media networks.

Walmart is also a go-to destination for groceries for all consumers, visited by 鈥嬧��68.3% of households earning less than $25,000 and 44.7% earning more than $200,000. What it means for marketers: No matter their income, consumers are drawn to Walmart鈥檚 value-driven mission and extensive product variety. Marketers can further their emphasis on value through ad messaging. 2.

The future of ecommerce is grocery. Historically, three categories led the US ecommerce market: apparel and accessories, computer and consumer electronics, and furniture and home furnishings. But in recent years, growth has been fueled by essential goods, including food and beverage items, personal care products, and household supplies. This shift will take grocery to the top of the four major ecommerce categories by 2026.

Kroger and Albertsons look to merge: A deal would create a supermarket giant that would be better able to compete against Walmart.

The top five digital grocers in the US will capture 67.2% of the country鈥檚 grocery ecommerce sales in 2022. That figure will rise slightly over the next two years, with leaders Walmart Inc. and Amazon growing their shares by about 1 percentage point each.

Amazon rolls out US grocery subscription as it tries to halt Walmart鈥檚 momentum: But the offering鈥檚 high cost relative to those of competitors could limit its impact on Amazon鈥檚 grocery business.

Instacart鈥檚 revenues and profits spiked in 2022, helped by its growing ad business: That could speed up the timeline for the grocery delivery company鈥檚 long-awaited IPO.

Instacart and a host of smaller delivery companies now control a sizable piece of the digital grocery market. We forecast delivery intermediaries will be responsible for more than 29% of US digital grocery sales in 2022. Instacart is by far the largest player in this space, but it faces new competition.

Last week, thousands of consumer packaged goods (CPG) and grocery leaders gathered at Groceryshop 2022, including our own chief content officer Zia Wigder and analyst Andrew Lipsman.

Aldi opened more US stores in 2022 and 2023 than any other grocery chain, according to February 2024 data from JLL and RetailStat.

Walmart and Instacart are outperforming Amazon in digital grocery, which could prevent the company from market share gains in food and beverage and health/personal care/beauty. So far, Amazon has held off competition from Temu and Shein, but the upstarts could stunt future growth in categories like apparel, footwear, and accessories. Read the full report, US Amazon Ecommerce Forecast 2024.

In a recent meta analysis, Grocery TV discovered that consumer packaged goods (CPG) brands averaged a 14% increase in incremental sales when advertising through its in-store retail media network.

Ecommerce sales in India, which is soon expected to become the most populous nation, are growing at one of the fastest rates in the world. But brick-and-mortar will still dominate the retail sector for the foreseeable future鈥攚e estimate that online sales will account for only 10.0% of total retail by 2027.