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These companies are growing faster than Amazon in digital grocery, which comprises these two categories. Temu and Shein aren鈥檛 serious threats to Amazon at the moment, but they are on track to become future competitors. The explosive popularity of these apps with US consumers of all ages is already on Amazon鈥檚 radar.

Almost three-fourths (74%) of consumers prefer to shop in-store for alcoholic beverages versus only buying them online (7%), according to March data from ThinkNow Research.

Yeah, and I think one thing that I heard, which was not new this year, but just in the whole conversation about grocery, talking about how there will be cultural issues that will get in the way of digital grocery adoption. And I think it's pretty uniform in every country that there's going to be that tactile component of grocery, people who want to go in and touch and feel.

With rapid deliveries projected to account for 70% of India's online grocery market by 2030, up from 45% today, Amazon faced a clear choice: Jump into the fray or risk falling behind. Our take: Amazon sees a massive opportunity in India, a country where we expect ecommerce sales to soar 18% this year to $115.76 billion.

The Digital Grocery Opportunity (蘑菇AV subscription required).

Starbucks is taking a different approach to its much-hyped Pumpkin Spice Latte this year. Rather than pulling the launch forward, as it has done for the past several years, the drink will make its debut on August 26鈥攆our days later than in 2024, and the PSL鈥檚 latest launch date since 2022. Delaying the launch slightly could build excitement over Starbucks鈥� fall menu, and encourage customers to visit more often once the PSL hits stores. The move might also lift sales for Starbucks鈥� grocery assortment鈥攅specially given the current popularity of at-home coffee brewing鈥攚hich could in turn help offset the company鈥檚 in-store softness. Still, the enduring popularity of the PSL alone won鈥檛 be enough to lift Starbucks out of its slump.

On today's podcast episode, we discuss the unofficial list of the most interesting retailers for the month of January. Each month, our analysts Arielle Feger, Becky Schilling, and Sara Lebow (aka The Committee) put together a very unofficial list of the top eight retailers they're watching based on which are making the most interesting moves: Who's launching new initiatives? Which partnerships are moving the needle? Which standout marketing campaigns are being created? In this month's episode, Committee members Analyst Arielle Feger and Senior Analyst Sara Lebow will defend their list against Senior Analyst Zak Stambor and Analyst Rachel Wolff, who will dispute the power rankings by attempting to move retailers up, down, on, or off the list.

Both BEVH and our projections forecast an acceleration in online sales this year. Zooming in: Three essential goods categories鈥攎edication (+6.3%), groceries (+5.5%), and pet supplies (+5.4%)鈥攑osted the largest YoY sales increases, while more discretionary categories like shoes (+0.8%) and clothing (+0.1%) saw modest gains. Electronics and telecommunications sales declined by -2.4%.

Despite room for expansion, online alcohol delivery will never be essential like online grocery. Alcohol buying is rising in popularity. An April 2023 survey from PowerReviews found 23% of digital grocery buyers typically purchased alcohol via digital grocery platforms. This is an increase from the same survey鈥檚 responses on alcohol buying in 2021 (17%) and 2022 (20%).

Online shopping is popular across all demographics, but the where and how differs by age, culture, and interests. Current purchasing behaviors can help retailers and brands target digital shoppers and anticipate new trends.

Amazon bets that Prime members will pay extra for free grocery delivery: The retailer is testing a grocery subscription add-on for $9.99 per month in its latest attempt to boost the appeal of its grocery business.

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

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.

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.

Amazon鈥檚 inability to take full advantage in the grocery space gives Walmart and other digital grocery players a chance to gain ecommerce market share in the category. It will remain difficult for competing retailers to capitalize on Amazon鈥檚 stagnant overall ecommerce market share. Outside of food and beverage, the only other maturing ecommerce category where Amazon is missing out is auto and parts.