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After Costco, Heckova! went back to the data to determine where to go next. 鈥淲hen we think of crossovers, we know our customers are shoppers at Costco. And where else do they look? They go to Target,鈥� said Pawlowski. 鈥淎s the rotation ended at Costco, we had a whole new community of consumers saying 鈥淗ey, I like this product. And we heard from a number of them saying that [Heckova!]

Number two, Costco for That's right. Launching a retAIl media network. This is huge for those of us who have repeatedly sat in meetings with our retAIl team asking why Costco doesn't yet have a retAIl media network. They have one now it's launching, and I think that's a pretty big deal. Suzy Davidkhanian (10:14):.

Both Target and Costco are testing larger-format stores with more ecommerce fulfillment space as they look to bolster their delivery capabilities and save money. Target鈥檚 Stores as Hubs strategy allowed the retailer to cut costs by 40% compared with fulfillment from traditional distribution centers.

This puts it leagues ahead of closest rival Costco, whose share will be just 9.5%. Walmart-owned Sam鈥檚 Club and Walmart+ will account for 5.9% and 1.5%, respectively. Beyond the chart: As much as Walmart wants to be an alternative to Amazon, it isn鈥檛 there. Walmart+鈥檚 deals and media offerings can鈥檛 compete with Prime鈥檚 selection, speed, and shows.

Yeah, so I insisted that we go to Sam's Club instead of Costco, specifically because of Scan and Go, we could get in and out quickly when the lines and everyone was going crazy.

A significant share also pays for membership clubs, including 28.1% who belong to Sam鈥檚 Club, and 24.9% who belong to Costco. Only 2.3% pay for Shipt, which offers free grocery deliveries on orders of at least $35, as well as free delivery from Target, Petco, Walgreens, and other national chains.

The other companies cracking the top five鈥�Costco Wholesale, The Kroger Co., and The Home Depot鈥攁ll benefit from in-store sales. As in-store retail media takes off, those businesses will be at an advantage. Use this chart:. Budget retail media ad spend. Evaluate wholesale retail strategy. Weigh in-store versus ecommerce. More like this:.

However, over the long term it needs to find ways to improve the experience it delivers to shoppers to avoid losing sales to mass merchants like Amazon, Walmart, and Costco.

For example, both Target and Costco are testing supersized stores that dedicate large spaces for ecommerce fulfillment. The big takeaway: Instacart has two key strengths: its exclusive agreements with grocers and its high-margin advertising business. As its agreements expire, grocers could shift to another provider or work with multiple partners.

Not many retailers are explicitly leaning into community buying, but it鈥檚 not unlikely we鈥檒l see wholesale retailers like Costco or Sam鈥檚 Club incorporate that messaging into their marketing strategies. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

Kroger faces strong headwinds as value-oriented retailers ranging from Walmart to Aldi to Costco chip away at Kroger鈥檚 share of food spend. The net result is that Walmart鈥檚 share of grocery dollars rose 1.1 percentage points over the past year to 25.2%, while second-place Kroger saw its share fall 0.5 percentage points to 10.7%.

The growing emphasis on price explains why Costco and Sam鈥檚 Club, two companies known for providing value, are now ranked among dunnhumby鈥檚 top five grocery retailers. Amazon, Trader Joe鈥檚, and BJ鈥檚 Wholesale Club also made the top ten. The big picture: There鈥檚 a clear disconnect between grocers鈥� priorities, and those of CPG companies and other suppliers.

The figures are largely in line with the trends major retailers like Costco and Walmart have noticed. Costco customers are growing more value-conscious, leading to lower sales for jewelry and expensive appliances, while Walmart shoppers are waiting for big sales events to purchase pricey items and buying less clothing and home goods.

While the company would still trail Walmart, Amazon, and Costco in terms of grocery market share, its expanded footprint would give it a huge in-store retail media advantage. That said, given the weight of public opinion against the deal and vocal opposition from lawmakers on both sides of the aisle, it seems increasingly unlikely the merger will take place.

Costco CEO Craig Jelinek said sales of expensive items such as jewelry and high-end TVs had slowed earlier this month. Ecommerce kept gaining share. Online sales accounted for 21.6% of total retail sales, up from 20.9% in 2021 and 20.6% in 2020, per Mastercard. Economic uncertainty drove many to alternative payment methods.

This is where I'll do a shameless plug for the Costco episode that we did a few weeks ago with Susie and Zach where we talked more about Costco and more about their hot dogs.

We expect Carvana鈥檚 sales to continue to grow and its share to surpass Best Buy and Costco in 2024 to reach the No. 7 slot. Lowe鈥檚 will maintain its share as Wayfair falters. The home improvement retailer will solidify its position in the No. 12 slot in 2024, while struggling furniture retailer Wayfair loses share and falls to No. 13. Already-dominant Amazon will gain most market share.

Costco Wholesale tested curbside pickup in 2021 but ultimately decided not to move forward. And Kohl鈥檚 recently discontinued its curbside option, instead focusing on automated in-store pickup.

Sam鈥檚 Club, Costco, and BJ鈥檚 Wholesale Club all reported strong鈥攁nd in some cases, record鈥攎embership growth throughout the year as shoppers took advantage of lower gas prices and bulk-buying discounts. Despite not being strictly a discount retailer, Walmart鈥檚 ability to keep grocery prices low helped it win market share and attract more affluent shoppers.

Its share of recent digital grocery buyers is similar to Instacart鈥檚 and larger than those of leading US grocery chains like Costco Wholesale and The Kroger Co. Amazon Fresh also has a larger online audience than Whole Foods Market. The most popular method of ordering grocery products from Amazon is via the core Amazon site, using ship-to-home fulfillment.

Gen Z beauty buyers are price-conscious, but less so than older consumers. 3 ways retailers like Walmart, Target, and Costco use private label to keep costs down, build brand loyalty. How retailers like Sephora, Nike, and Amazon bridge the digital-physical gap. Back-to-school lessons from Walmart, Target, and Amazon.

Walmart鈥檚 strengths lie in grocery, retail media, but fulfillment spells an opportunity. 3 ways retailers like Walmart, Target, and Costco use private label to keep costs down, build brand loyalty. TikTok bets big on livestream commerce, aims for $20B in global sales. How Ikea innovates to keep up with an expanding ecommerce market.

And then of course, we go into Costco and spend a lot more on things we didn't know we needed and then we get a hot dog and pizza and feel better about it all because we're saving so much on that. Sara Lebow:. Love the Costco hotdogs. You're saying that your dog food, switching to private label alone paid for your Costco membership? Sky Canaves:. Yeah. I think we save about $30 a month. Sara Lebow:.