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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.

Though growth is slowing, digital grocery will continue to fuel overall ecommerce growth in the US. 鈥淕rowth is no longer driven by new adopters, but heavy digital grocery users,鈥� our analyst Blake Droesch said on a recent 鈥淩eimagining Retail鈥� podcast episode. Here鈥檚 how retailers like Instacart, Amazon, and Walmart can capitalize on frequent buyers.

How shoppers buy groceries online is changing: As consumers grow more cost-conscious, pickup鈥檚 share of digital grocery orders rises.

The future of ecommerce is grocery. Historically, three categories led the US ecommerce market: apparel and accessories, computer and consumer electronics, and furniture and home furnishings. But in recent years, growth has been fueled by essential goods, including food and beverage items, personal care products, and household supplies. This shift will take grocery to the top of the four major ecommerce categories by 2026.

Less than 19% of US digital grocery buyers used Amazon Fresh within the past year. Nearly all of them have also shopped on other digital grocery platforms.

Even the most frequent digital grocery buyers (defined as those who make more than one online purchase per month) purchase groceries both in stores and online. But they are more likely to purchase perishables online and forgo buying certain categories in stores.

Amazon rolls out US grocery subscription as it tries to halt Walmart鈥檚 momentum: But the offering鈥檚 high cost relative to those of competitors could limit its impact on Amazon鈥檚 grocery business.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss the differences between how US and UK consumers shop for groceries. Then, for "Pop-Up Rankings," we rank two grocery stores doing digital well, two taking an alternate approach, and why both can work. Join our analyst Sara Lebow as she hosts analysts Blake Droesch and Carina Perkins.

As retail media evolves, ad placements off-site and in-store will help grocery advertisers reach shoppers in new and more engaging ways, but consumers may not be in a spending mood as credit card balances grow and savings accounts shrink. If Amazon can get grocery right, it may be able to fight off losing share to Walmart. But if the Kroger-Albertsons merger goes through, it could change everything.

Aldi opened more US stores in 2022 and 2023 than any other grocery chain, according to February 2024 data from JLL and RetailStat.

Amazon takes the bells and whistles out of its brick-and-mortar grocery experience: Amazon Fresh stores will no longer feature Just Walk Out as the retailer focuses on making its stores more inviting.

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.

顿辞辞谤顿补蝉丑鈥檚 grocery business is booming, and Instacart is leaning on advertising to tide it over as its delivery volumes are down. Perhaps taking a cue from both, Uber Eats continues to add non-restaurant delivery partners while also building out its advertising platform.

Instacart will retain its status as grocery delivery king this year, capturing 73.0% of US digital grocery sales among third-party delivery services, per our forecast. However, competitors such as DoorDash and Uber will continue to eat away at its dominance.

Amazon will offer grocery delivery to non-Prime members nationwide: The retail giant also plans to resume opening Amazon Fresh stores next year.

Nearly half (48.4%) of Amazon Fresh shoppers try new grocery products multiple times per month, according to an Insider Intelligence survey.

Younger consumers and higher-income shoppers are powering Walmart鈥檚 grocery growth while its physical footprint gives it an edge in retail media. Its burgeoning logistics business could be the next big thing for the retailer鈥攁nd its bottom line.

Key stat: 28.0% of Gen Z consumers have discovered grocery products via search engines, compared with 16.7% that have discovered products while browsing store shelves, per our forecast.

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

The fight for grocery dollars is heating up. Retailers that offer shoppers the right assortment of products at the lowest prices are likely to win. In order to keep dollar and discount stores from stealing share, other retailers need to borrow their pricing and merchandising strategies to connect with cash-strapped consumers.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss how younger Gen Z consumers are most likely to discover grocery products, whether this new wave of celebrity-backed brands is different from previous ones, and what social media's role in all of this is. Then, for "Pop-Up Rankings," we rank the four elements a celebrity- or creator-led consumer packaged goods (CPG) brand needs to succeed. Join our analyst Sara Lebow as she hosts analysts Blake Droesch and Carina Perkins.

US ecommerce sales will grow 9.3% to reach $1.137 trillion in 2023, per our forecast, thanks to cost-conscious consumers looking for better deals and an increasing number of digital grocery buyers. As 2023 wraps up, ecommerce will go out on a high note, with online holiday sales growth outpacing brick-and-mortar sales.

US grocery store displays averaged 80.3 per store in 2023, a decline 10.2 from 2018, according to Q3 2023 data from Circana.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss points of tension around Trader Joe's and other cult grocery brands. Then for "Pop-Up Rankings," we rank the top four private label grocery brands people go out of their way for鈥攁nd why. Join our analyst Sara Lebow as she hosts vice president of content Suzy Davidkhanian and analyst Zak Stambor.