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Walmart鈥檚 growth opportunity: Walmart considers its marketplace to be a cornerstone of its strategy to grow sales and profits, especially as its expanding grocery business weighs on margins. So far, it鈥檚 seeing results. The number of shoppers who purchased items from Walmart鈥檚 marketplace rose by 14% year-over-year (YoY) in Q2, helped by a nearly fourfold increase in the number of available SKUs.

Prime Day shoppers are also favorable toward other marketplaces like Overstock.com, QVC, and HSN, as well as grocery retailers like Whole Foods Market and Trader Joe鈥檚. Consumers who prefer apparel brands like Nike, Skechers, and Tommy Hilfiger were not as active during this year鈥檚 Prime Day.

Why we care: The future of retail media is tied directly to grocery and CPG categories, according to our analyst Andrew Lipsman. Yahoo is smart to align itself with a CPG-adjacent partner. Retail media ad revenues will reach $45.38 billion this year and continue to grow by double digits through 2027. This was originally featured in the Retail Daily newsletter.

Discount and value-focused retailers, like Walmart and Dollar General, will continue to benefit from consumers trading down in the grocery category, while luxury retailers like LVMH Moet Hennessy Louis Vuitton and Capri Holdings are bullish as China recovers from pandemic lockdowns. This was originally featured in the Retail Daily newsletter.

Apparel, and though what surprised me and may be a little bit sad too, was groceries is the number three thing people are going to splurge on over the holidays. Paul Verna:. I guess there's no option for using buy now, pay later, and forgetting to pay. Suzy Davidkhanian:. There was. Oh, not the forgetting to pay.

鈥淚nstacart has a much bigger view across different grocery stores versus a competitor such as Walmart, which is limited to data from its own customers,鈥� Davidkhanian said. 4. Albertsons.

And you know Walgreens as the pharmacy, you know Amazon for shipping you things in 30 seconds, you know Kroger for buying groceries.

Why it matters: Grocery retail sales are expected to reach $1.569 trillion in the US this year, with $204.61 billion coming from online purchases, according to our forecast. As consumers get more comfortable with shopping online, Walmart found that consumers choose where to shop based on key values like competitive pricing, the availability of high-quality items, and data security.

Grocery and gourmet food: No change in cost, strong ecommerce sales growth, increase in ad spend investment, modest ROAS. Health and household: Slight increase in cost, positive ecommerce sales growth, modest increase in ad spend investment, modest ROAS. Home and kitchen: High increase in cost, high ecommerce sales growth, strong increase in ad spend investment, lower ROAS.

Supermarket News. The Verge. Toast. US Census Bureau. Winsight Grocery Business.

But if you've tried something for a year, for example, stores, stores is 85% of sales right now, maybe it's going to get to 80% in the next three years but it's still a bulk of sales and especially in grocery. So, if Amazon continues to double-down on stores and grocery, could it ultimately win? Maybe, there's no reason to believe not. Is it going to win short term?

Other categories with at least a 10% increase in Q2 sales were health & household (10%), grocery & gourmet food (13%), and electronics (14%). Despite the patio, lawn, and garden increase, not all home-related categories boomed. Tools and home improvement only increased 2% QoQ, and home & kitchen declined 5%. Video games, typically an indoor activity, showed the biggest Q2 decrease at 39%.

And despite the fact that many consumers are pulling back on their spending amid higher grocery prices, both companies grew their net revenues in Q1 2024. What it means: Olipop and Poppi's growing popularity demonstrates Gen Z's interest in functional foods and beverages.

What started as a strategy to beat high grocery prices has become a lasting trend as consumers continue to purchase store brands, even as inflation cools. This means that retailers need to put as much effort into their own brands as they do with national brands, including pricing, promotion, and product quality.

DoorDash doesn't have the location data that Lyft does, and Lyft needs the kind of more restaurant, grocery delivery data that DoorDash has. So I think that's just going to really strengthen both of their ad networks. Sarah Marzano (14:35):. Yeah, I completely agree with you.

And so if you were visiting the grocery store once or even more than once a week, made it very easy for you to stop by and do your banking services. And so that convenience was really important back in the day. Supermarket branches actually, if you look at it on a new customer acquisition basis, performed just as well as traditional banks as gathering those new relationships.

People have started using BNPL a lot more for groceries, for example, and groceries are something people have to buy every single week. That $100 grocery bill is then $100 more the next week and the next and the next, and it snowballs and it gets out of hand.

Grocery is one of the places where Walmart is still in better shape than Amazon in a lot of ways. So I think that this would be a good bet for Amazon.

Target is doubling down on essential items and groceries, but it's also looking to add some cooler new bells and whistles like Starbucks delivery to your car and curbside returns.

And then I think the conversation becomes, which is a different one, so I know we don't want to go down that path, but is Amazon truly going to be a grocery place, the destination where people are going to go grocery shopping? So once we take that out of the equation and we don't even think about it in that term, we just think about the technology. I don't think it's the end of just walkout, right?

Well-known name in Europe, now the supermarket is taking the US by storm opening around 100 shops a year. "Faster than anyone else," says property consultancy JLL. Last year, Aldi took over 400 Winn-Dixie and Harveys Supermarkets in the South of the US, and they plan to invest $9 billion over five years, opening 800 new Aldis on top of the 2,400 it already has.

But in that case, there's probably going to be continued high scrutiny of the mergers, like the Kroger-Albertson's deal, which I think is pretty unlikely to actually happen if she takes office, and the Mars-Kellanova deal as well, because those deals likely would lead to higher grocery prices. Marcus Johnson (20:56):. Well, that's all we've got time for for today's episode.

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.