Third-party intermediaries haven’t caught up with grocers

Key stat: Third-party grocery intermediaries lost share to grocer platforms in 2023, securing 15.2% of US digital grocery sales in Q4, down from 18.3% in Q1, according to December 2023 data from Incisiv and Wynshop.

Beyond the chart:

• US grocery retail ecommerce sales will grow 17.4% to reach $219.04 billion this year, according to our November 2023 forecast.
• Much of retailers’ success in winning back digital share is due to Walmart’s growth of click and collect, as noted in our US Digital Grocery 2024 report.
• Ease and convenience was the top factor that influenced US adults’ decision on where to make their most recent grocery purchase, per a February 2023 PYMNTS.com survey.
• If third-party intermediaries want to gain back share, they need to focus on making the shopping experience as seamless as possible, whether it’s through search improvements, product recommendations, and/or simplifying the payment process. But they’ll continue to face challenges from retailers building their own tools.

Use this chart:

• Understand where to make digital grocery ad investments.
• Assess digital ad spend across grocery channels.

More like this:

• Grocery, in-store pickup drive click-and-collect growth
• How Amazon Fresh stacks up among the leading digital grocery players
• Grocery shoppers in search of convenience shift spending to online channels
• US Digital Grocery 2024

Methodology: Data is from the December 2023 Incisiv, "2023 Digital Grocery: Year in Review" in partnership with Wynshop. 2.2 million US shopper orders were analyzed during January 1, 2022-November 30, 2023. Additionally, 1,493 US grocery executives were surveyed during the same period.