Video: eGrocery Insights - November 2024

In this discussion hosted by Mark Fairhurst, Chief Growth Officer at Mercatus, and David Bishop, Partner at Brick Meets Click, he and David dive into November’s eGrocery sales, which reached $9.6 billion —thanks to increased demand combined with evolving shopping behaviors. This top-line sales figure for the month represents 18% YOY growth. 

How Walmart is winning in eGrocery

Get insights into the popularity of Walmart and its ability to win over customers through price, convenience, and innovation.

Mark and David explore Walmart’s growing market dominance, fueled by its aggressive delivery expansion and services like Walmart Plus, which are capturing both low- and high-income customers. 

Also with more than 50% of eGrocery customers now in the "4+ orders per 90 days" cohort, David explained that repeat intent rates are climbing to their highest levels since 2020. He speculates that this is driven largely by Walmart’s focus on customer experience and affordability. 

As Walmart continues to refine its value proposition and increase its first-party delivery service options, regional players are struggling to compete on both price and service.

Mark identifies how Walmart is able to use its customer data to retain customers and then use that increased shopping to collect more data and provide even more relevant offers to customers. 

To close, David came back to something he discussed earlier in the episode: Walmart’s success in shifting its appeal to higher-income households.

This shift, he points out, has been enabled by innovations like dynamic delivery up-selling, personalized app prompts, and Walmart Plus’s convenience-driven model which has led the retailer to offer its own delivery service in nearly 98% of its locations. 

Video Chapters

0:00 – Introductions and Opening Remarks

0:45 – November Grocery Sales Overview

1:25 – Comparison Shopping: Grocers vs. Walmart

5:20 – Walmart is Up-selling on Convenience/Time Slots

8:00 - Exceeding Customer Expectations in Fulfillment

14:05 – What's Up with the High Repeat Intent Rates?

18:20 – Walmart’s Appeal with Affluent Shoppers = Delivery

20:15 - Reduced Subscription Fees for Lower-Income Households