Video: eGrocery Insights - March 2025

Welcome to the March 2025 edition of US eGrocery Sales Trends, hosted by Mark Fairhurst, Chief Growth Marketing Officer at Mercatus, and David Bishop, Partner at Brick Meets Click.

Mark and David begin their conservation by recognizing the 5th anniversary of the start of the COVID-19 pandemic. They then dive into the biggest data point from March 2025’s eGrocery sales report: Online grocery sales have now exceeded $9.5 billion for the eighth consecutive month.

This historic streak signals a new baseline for online grocery shopping behavior. David attributes this surge primarily to continued momentum in delivery, which is overtaking pickup as the dominant fulfillment method in the U.S. With deep discounts on annual delivery memberships driving customer acquisition and retention, the two discuss how the economics of delivery are evolving, and what this means for both shoppers and grocers.

Next, the conversation shifts to the impact of inflation and tariffs on consumer behavior.

• Mark and David explore how these economic pressures are pushing shoppers toward value-driven choices, such as private labels, smaller pack sizes, and cashback incentive programs.
• David offers specific strategic advice to regional grocers feeling the impact of these challenges, including how to compete on pricing, leverage loyalty programs, reduce service friction, and make digital investments that help protect and grow their customer base.
• He emphasizes the importance of showing customers how they’re saving—not just enabling it—and uses the example of Walmart Cash as setting a new standard in shopper engagement.

Mark and David wrap up by reflecting on loyalty economics of membership plans from both Walmart and Costco and share personal stories that illustrate how distance and brand loyalty are becoming secondary to price and convenience.

Timestamps

0:00 – Introductions & Five-Year Anniversary

1:31 – March Headline: 8 Straight Months Over $9.5B

3:00 – Delivery vs. Pickup: A Market Shift in the Dominant Method

5:06 – Tariffs & Inflation: What Comes Next?

6:37 – Discounted Memberships & Shopper Retention

8:00 – How Shoppers Adapt to Higher Prices

10:58 – Can Regional Grocers Compete?

13:02 – Key Advice for Regional Grocers (aka Practical Next Steps)

15:48 – Market Shifts & Cashback Incentives

17:52 – Ginger Beer Economics & More Tariff Talk

19:40 – Final Thoughts