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Though many retailers have suffered from the pullback in consumer spending, some have come out swinging, particularly in the grocery category. Discount retailers like Dollar General and Dollar Tree have seen an influx of consumers who are looking to get more bang for their grocery buck.

Walmart鈥檚 click-and-collect program could also help drive holiday sales, particularly when it comes to grocery. 鈥淲hen you look at what鈥檚 going to be driving digital grocery growth over the next couple of years, a lot of it is coming from sales growth and click and collect, not delivery.

Local officials, including Arizona鈥檚 attorney general, are scrutinizing the impact consolidation will have on grocery competition. Kroger and Albertsons together account for nearly half of Arizona鈥檚 grocery sales.

Already the largest grocer in the US, Walmart has benefited from higher-income shoppers looking to save on groceries. Roughly 75% of its market share gain in grocery came from households making more than $100,000 in the past two quarters, the company said last month.

Discount stores and club retailers: Unsurprisingly, as gas and grocery prices rose, more shoppers began turning to discount and club retailers for some relief at the pump and at the cash register. Foot traffic to discount grocers like Aldi and Grocery Outlet rose in Q3, in contrast to the wider grocery category鈥檚 drop in visits, per Placer.ai.

Overall, grocery neared 10% ecommerce penetration in the US in 2022, according to our forecast. Within that category, there鈥檚 a disparity in penetration. Pet products already hit 36.0% penetration, while food and beverage remains lower.

McDonald鈥檚 and Chipotle are in a good position going into 2023, as consumers trade down from more expensive dining options and look for an escape from skyrocketing grocery prices.

The bulk of these partnerships are in the grocery and convenience categories, but the delivery platforms also work with retailers like Bed Bath & Beyond, Best Buy, Lowe鈥檚, PetSmart, and Sephora. Delivery companies鈥� share of total US digital grocery sales is approaching 30%, according to our forecast.

Grocery retailers may want to conduct limited experiments on dynamic pricing for expiring food products鈥攁 version that consumers will find easier to digest. Insider Intelligence and eMarketer research is based on the idea that multiple sources and a variety of perspectives lead to better analysis.

Nothing can compare to the sky-high growth of 2020, but Instacart has managed to achieve double-digit grocery sales growth over the past two years, a trend we expect will continue into 2024. Though still a small fraction of total grocery sales, we predict Instacart鈥檚 share will grow from 1.9% in 2020 to 2.7% by 2024. 2. The battle for market share is on.

While price and discounts play a huge role in grocery purchases, ease and convenience are even more important, according to February data from Pymnts.com. But retailers can鈥檛 just count on one or the other to bring in customers.

Digital grocery heavily impacts ecommerce channel share. Countries like China and the UK that have high ecommerce penetration have seen a large percentage of grocery retail shift online. Each marketplace鈥檚 size reflects the region it operates in. For example, China represents over 50% of all ecommerce globally; the US, around 18%. Latin America as a whole is under 3%.

Why it matters: Boomers, often empty nesters with smaller households, don鈥檛 need to shop for groceries as frequently as millennials and Gen Z, who may have young families. Grocery marketers should emphasize the convenience and ease of ecommerce delivery services.

Walmart+ Week shoppers also spent 45% more on average compared with Prime Day participants鈥�$473 to $326鈥攁 reflection of the retailer鈥檚 success in courting high-income consumers, who purchased more big-ticket items and groceries during the event than any other cohort. The big picture: There鈥檚 no question that in the duel of the sales events, Amazon has the edge.

Behind the numbers: As has been the case for the last several quarters, the retailer鈥檚 better-than-expected results were powered by the strength of its grocery and ecommerce segments. Walmart continued to gain grocery share in Q3, which along with growth in the health and beauty category helped offset a decline in general merchandise sales.

It doesn鈥檛 offer free same-day shipping on grocery orders, and it no longer offers click and collect as a fulfillment option for grocery. Its membership is driven almost entirely by in-store shopping and has remained popular amid the digital disruption in retail. Costco鈥檚 success also underscores the value of a strong private label brand.

This chart here shows Americans preferred grocery store checkout method. This is from last year. Just Walk Out was a distant third place with just 10% versus around 40% of people who said self-checkout with a kiosk or the traditional checkout with a human. The survey was from Progressive Grocer and RIS News.

That feeling is due to Trader Joe鈥檚 dedication to what it believes makes a good customer experience, which is slightly different than other grocery stores.

For example, Amazon and Walmart may look like grocery competitors, but Walmart鈥檚 grocery business tends to skew toward fresh foods while Amazon skews toward pantry goods. That means that even though the two companies compete on a macro level, they may not be competing for the same consumer at the same time.

The shifting retail landscape: Adobe鈥檚 report found that shoppers chose cheaper products across a number of categories, including personal care, electronics, apparel, furniture, and grocery.

Electronics and fashion are the top categories for BNPL payments, but UK consumers are also using the service to pay for day-to-day essentials such as groceries and fuel, and to fund holidays. BNPL platforms are evolving beyond payments.

People need that money for groceries, potentially. Yeah. The reasons behind this fascinating. So it'd be worth digging a little bit deeper to figure out why but yeah, a lot of those rates. Overall, it had gone up a bit when you look at just playing any sports. So that's positive. But when you look at people playing sports teams and certain groups of people, it is down.

Our analysts were divided on Aldi鈥檚 ability to put a dent in Walmart鈥檚 grocery business, with analyst Suzy Davidkhanian saying Aldi doesn鈥檛 have the footprint or variety to compete with Walmart. 鈥淚t's like a one-trip-wonder kind of activity versus Aldi, which only has 驳谤辞肠别谤颈别蝉,鈥� she said. 3. Wayfair.

Inflation鈥檚 impact: While QSRs benefited in 2022 and early 2023 from rising grocery prices driving shoppers to look for an affordable meal, the landscape changed over the past year as grocery prices stabilized and restaurant prices continued to rise. That led a sizable segment of consumers鈥攑articularly those who are lower-income鈥攖o pull back. Economic vibes influence consumer spending patterns.

Meeting customers鈥� grocery needs: While Amazon has a significant grocery business, Jassy acknowledged the company has yet to find the right scalable model. It recognizes the need to expand its physical footprint, given that the vast majority of grocery sales occur offline. (Our US Grocery Retail Ecommerce Sales forecast suggests 88% of sales will be offline this year.).