TOP TAKEAWAYS
- Walmart captured nearly 36% of all U.S. online grocery sales in Q2 2023
- Pickup captured a 48% share of the U.S. market
- Total online grocery sales were down 1.1% in Q2 2023 versus the prior year
Walmart’s share of U.S. online grocery sales has reached a record high in Q2 2023, surpassing supermarkets for the third consecutive quarter reports according to the latest monthly Brick Meets Click/Mercatus Grocery Shopping Survey, compiled since March 2020.
The retailer captured nearly 36% of all U.S. online grocery sales in Q2, up more than five percentage points from the prior year and the highest share to date. Additionally, pickup offers helped to drive Walmart’s share increase, finishing at 48% for the quarter (almost two points higher than last year).
Walmart’s share (excluding Sam’s Club) first surpassed supermarkets in Q3 2022, when good-at-home inflation prices were at their peak. The retailer has gradually continued holding the top spot since then.
“The combined effect of price inflation and the expiration of COVID financial supports has triggered a flight-to-value as purchasing power remains under pressure,” said David Bishop, partner at Brick Meets Click. “This means it’s vital for grocers to offer customers more ways to save money while also providing the experience that online shoppers expect, as cost considerations will weigh more heavily than convenience for cash-strapped households in the second half of this year.”
The report also looks at related independent analyses of consumer price index data from the Bureau of Labor Statistics, which documents that the purchasing power of U.S. households dropped over 7% during the first half of 2023 versus a year ago.
With pickup being the lower cost-to-use service to receive online grocery orders compared to delivery, pickup options have steadily expanded in share for online grocery sales over the last several years. Pickup ended the second quarter with a nearly 48% share of the total U.S. market. Additionally, supermarkets and mass contributed to that share growth as grocers continued to introduce pickup services at more store locations.
Mass rival Target has also seen moderate growth in online grocery sales over the last two years finishing Q2 2023 with approximately 7% of online grocery sales. The report notes “strong and consistent execution — especially in fulfilling pickup orders — and a price gap that is halfway between supermarkets and Walmart likely offered a degree of defense for its online grocery business.”
Other key highlights from the report include:
- Total online grocery sales were down 1.1% in Q2 2023 versus the prior year
- The main driver of the sales decline was fewer orders completed per household, down 5% year-over-year
- While repeat intent rates during Q2 2023 were down slightly versus last year across pickup and delivery and for core formats (mass, supermarkets, and hard discount), the gap between mass and supermarkets for both receiving methods continued to widen
