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Younger generations are more likely to discover new grocery products via social media and search engines.

The ecommerce boom in Canada means many product categories now sell a significant percentage online. This includes grocery, which we forecast for the first time this year.

Grocery spending is slowly shifting online as consumers seek convenience: More shoppers are leveraging grocers鈥� ecommerce options as well as delivery platforms like DoorDash and Uber Eats.

Tesco鈥檚 newest venture takes aim at Ocado: The UK grocer鈥檚 Transcend Retail Solutions division aims to help international supermarket chains develop their ecommerce operations.

More than 181 million people in the US will be Amazon Prime members this year, representing nearly 7 in 10 (73.7%) US internet users, according to our July 2024 forecast. Many of them turn to influencers before checking out; others can be won over by better discounts from competitor retailers; while some favor Amazon for fashion over groceries.

On today's episode, we discuss a part of digital ad spending that will overperform this year, why some countries will see a dip in online shopping, what will happen to time spent on social platforms, and more. Tune in to the discussion with our forecasting writer Ethan Cramer-Flood, analyst Zach Goldner, and director of forecasting Oscar Orozco.

Since the pandemic, online ordering and delivery have become table stakes for the grocery industry. Retailers like Albertsons have begun to develop tools and capabilities that provide added value for customers, focusing on creating a more convenient experience. 鈥淐onsumers think about food 226 times a day, that鈥檚 a lot of cognitive load,鈥� said Jill Pavlovich, senior vice president of digital shopping experiences at Albertsons Cos. 鈥淪o we want to take the experience from a transactional one to a helpful set of tools that can help people manage this.鈥� Albertsons leveraged customer data to identify areas for improvement across its website and mobile app.

On today's episode, we discuss how we should feel about Amazon's online sales being flat, how its ad business was able to have such a good quarter, and why the company has yet to find a mass grocery format worth expanding. "In Other News," we talk about how Pinterest has been doing and just how popular self-checkout is. Tune in to the discussion with our analyst Blake Droesch.

Gen Z spends significantly on beauty products online while favoring in-store shopping for apparel. For groceries, this tech-savvy generation relies heavily on search engines and social media to discover new products. Additionally, the trend toward low- and no-alcohol beverages is gaining momentum, as many Gen Zers embrace initiatives like Dry January.

The hope is that consumers will get used to the convenience and savings offered by Amazon and turn to the retailer to fulfill more of their needs鈥攁 reasonable assumption given that long-term growth in the digital grocery space will come from existing buyers spending more of their grocery budgets online.

That would be really interesting because there is a lot more of the pharmacy side of these stores is moving online and moving to other channels as well, like supermarkets.

Amazon tests yet another grocery format: Amazon Grocery, which is located next to a Whole Foods Market, aims to fill the hole left by the sister brand鈥檚 restrictions on certain ingredients.

So we talk about prices, but food prices, I think, are one significant bellwether. 86% of consumers are frustrated with the rising cost of grocery shopping, according to an R. R. Donnelley & Sons survey. And food price is something we look at every day, so we're hyper aware of prices going up. They're up 28% since 2019, so they're up significantly.

Marketplaces play a major role in beauty and clothing, while grocery shoppers rely on in-store visits. Retailers must balance both online and in-store strategies, leveraging loyalty programs and fast delivery to stay competitive.

The retailer has spent years testing physical stores across books, apparel, groceries, and convenience items. But aside from Whole Foods, which it acquired, Amazon has struggled to find a winning formula because it has often failed to recognize the differences between online and offline shopping habits.

The double-digit growth in US consumer packaged goods (CPG) digital ad spend will come to a halt next year and hover around just 6% through 2026, per our forecast.

Online sales are back in growth in the UK, but the fortunes of key ecommerce retailers have been mixed, with some suffering a greater blow from the cost-of-living crisis than others.

If Amazon wants to make a serious dent in the grocery landscape beyond Whole Foods and the 50-some Amazon Fresh locations, it will likely need to acquire a company with a larger footprint.

Digital activity now plays a major role in product discovery, with younger generations driving sizable shifts in the way shoppers find new products.

Shoppable media is any form of digital media that includes a 鈥渟hoppable鈥� call to action. Prominent examples of shoppable media include social commerce, connected TV (CTV) ads with QR codes, livestream shopping, and online recipes that include links to purchase sites. Social commerce is a growing market, but adoption hasn鈥檛 caught on elsewhere.

UK ecommerce sales have bounced back to steady growth as consumer spending remains resilient despite inflationary pressures. Most major categories will see a further shift online by 2027, bringing opportunities for ecommerce retailers.