U.S eGrocery Market Share Report, Q1-2024 Edition
The #1 challenge facing grocers is the increasing market share being taken by Mass Merchants. Competing on price alone isn’t an option. Grocers need detailed insights into consumer behavior to make better strategic decisions.
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Grocers using the insights and recommendations from the quarterly U.S eGrocery Market Share reports are winning back their market share from Mass Merchants.
The highest eGrocery sales levels were posted in the first quarter of each of the past three years. In Q1 of 2024, eGrocery sales fell 3.1% versus 2023.
Pickup, while still the receiving method of choice for eGrocery, was the the only segment to post a year-over-year sales decline in Q1 of 2024, dropping more than 7%. Delivery was flat while Ship-to-Home inched up 1% versus Q1 of 2023.
Pickup lost 200 bps of sales share this quarter with Delivery capturing most of the decline and Ship-to-Home posting a rare gain from its Q1 of 2023.
Average weekly grocery spending per household increased by less than 1% versus Q1 of 2023, while online’s share of grocery spending climbed 120 bps.
While Q1 2024 price inflation remains above 2021 levels, it is lower than its peak at the end of the second quarter of 2022. Meanwhile, Food-at-Home (FAH) is at one-third of 2021 levels, having topped out in Q3 of 2022.
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