Video: eGrocery Insights - August 2024

In this new episode of US eGrocery Sales Trends video series, Mark Fairhurst, Chief Growth Officer at Mercatus, and David Bishop, Partner at Brick Meets Click, dive deep into the latest developments in the eGrocery market using August 2024 sales data as a foundation. 

For the third consecutive month, Delivery has fueled remarkable growth in the sector, driven by fierce competition among industry giants like Walmart, Instacart, Amazon, and DoorDash. These companies are aggressively pushing subscription and membership deals in a bid to lock in customers.

• Mark and David break down how these “free Delivery”  promotions are redefining the competitive landscape, sparking questions about their long-term viability. They debate whether these deep discounts are sustainable, not only for major retailers but also for third-party service providers who rely on this evolving ecosystem.
• Much of the episode is dedicated to the challenges regional grocers face as they navigate growing pressure from big-name players offering steep delivery discounts. With consumers increasingly focused on value, many regional grocers are feeling the heat. Adding to the complexity, August saw a notable drop in eGrocery customer repeat intent, as more shoppers signaled their uncertainty about sticking with the same service in the upcoming month.
• As the conversation concludes, Mark and David offer practical strategies to help regional grocery retailers to carve out their own competitive edge. They highlight the importance of focusing on perimeter departments, especially fresh produce, which could become a key differentiator in a market heavily dominated by center aisle product deliveries.

Video Chapters

0:00 - Introductions and Overview 

0:55 - Who is providing the deep discounts on Delivery? 

2:59 - How do Big Retailers offset Delivery discounts? 

7:31 - How are Instacart’s discounts affecting Regional Grocers 

10:07 - Pressure on lower-income households and Dollar Stores 

11:37 - Why are fewer eGrocery Customers saying they will reuse the last service used? 

13:28 - How will the upcoming 3 months of eGrocery sales likely unfold? 

16:07 - Importance of Perimeter departments to Regional Grocers 

18:05 - Wrap-up & Conclusion