📈 Walmart's Market Share Soars
In Q2 2024, Walmart secured 37% of U.S. online grocery sales, rising from 28.2% in Q2 2021. This data, provided by Brick Meets Click and Mercatus, shows how Walmart’s commitment to low prices and efficient online shopping boosted its market position.
🏪 Supermarkets Lose Ground
While Walmart gained ground, supermarkets saw a decline in their share of online grocery sales, dropping from 34.3% in Q2 2021 to 27.3% in Q2 2024. Supermarkets now trail behind mass merchants, who captured nearly 50% of all delivery sales.
🚚 The Power of Delivery and Pickup
Walmart's focus on expanding its first-party delivery services led to significant changes. Mass merchants, including Walmart, controlled 58% of pickup sales, despite a slight loss in share. Supermarkets, aided by services like Instacart, managed to maintain a foothold in delivery sales.
💡 Strategies for Regional Grocers
To compete, regional grocers are urged to target budget-conscious shoppers by enhancing their digital experience, offering loyalty programs, and running promotional campaigns. "Boosting loyalty with points, discounts, and exclusive deals is key," said Mark Fairhurst, Chief Growth Officer at Mercatus.
Is Walmart's growth in online groceries unstoppable?
