Q3 2024 U.S. eGrocery Market Share: Video Update

The 3Q24 U.S. eGrocery Market Share Report has just been released and identifies several trends that are shaping the grocery industry, filled with data and insights that grocers need to remain competitive.

To discuss these trends and offer their insights, Mark Fairhurst, Chief Growth Officer at Mercatus, is joined by David Bishop, Partner at Brick Meets Click.

Their conversation begins by looking at how major players like Walmart are driving online grocery sales with discounted delivery subscriptions. While these promotions have boosted eGrocery numbers over the last three months, Mark and David examine what that means for regional grocers specifically: How can smaller and regional grocers compete in a world where free delivery is becoming the norm?

Mark and David emphasize several strategies that grocery retailers can adopt, including:

• Maximizing Pickup services, an often-underutilized resource that larger chains haven’t fully tapped into.
• Developing creative subscription models to foster loyalty and provide a unique offer that fits their customer base.
• Enhancing the in-store experience, leveraging the personal touch that larger competitors struggle to replicate.

Throughout the episode, Mark and David discuss how subscriptions like Walmart+ make delivery fees feel avoidable and incentivize higher order frequency, leading to interesting debate on whether this consumer trend toward delivery is sustainable and what regional grocers can do to compete in the long term.

The conversation also touches on the broader economic pressures, including how food-at-home inflation continues to outpace HH income growth for many Americans. This has put added pressure on grocers to find ways to support value-driven customers.

As we move into 4Q24 approaches, Mark and David predict continued growth in online grocery sales driven by the subscription models, though they caution that much of this growth may disproportionately benefit larger retailers unless smaller grocers take proactive steps.

The video wraps up with a data-backed discussion on how regional grocers can differentiate themselves by focusing on enhanced Pickup services, innovative subscription packages, and leveraging their local market knowledge.

Video Chapters

0:00 - Introductions and Overview of the Results

1:48 - How Should Grocers Respond to Free Delivery Promotions?

3:39 - Subscription Discounts: What’s their impact on consumer behavior?

6:04 - Understanding the Economic Pressures Today’s Households Face

10:32 - Sustainability of Deep Delivery Discounts: What Happens when these annual subscriptions expire?

14:20 - Advice for Regional Grocers: Focus on Pickup services

18:06 - How to Differentiate in a Competitive Market: Hint – Think multi-prong strategy

19:55 - Predictions for Q4: What’s next for eGrocery?