Bentonville, Arkansas, U.S.A.-based retail giant Walmart captured a record 37 percent of the U.S. online grocery market in the second quarter of 2024, according to a Brick Meets Click and Mercatus joint report.
Walmart’s share of the total e-grocery market climbed 150 basis points compared to the same quarter last year to mark its highest market share level to date, according to the U.S. eGrocery Market Share Report - 2Q24.
Walmart’s year-over-year gains made in Q2 2024 build on a multi-year upward trend for the retailer, fueled by economic conditions and key strategic moves that have delivered results, the report found.
“Walmart’s reputation for low prices helped to attract households that wanted both the convenience of shopping online and ways to save money in this market,” Brick Meets Click Partner David Bishop said. “The execution of its omnichannel strategy, plus the operational efficiencies aided by incredibly high order demand, has enabled Walmart to consistently deliver the type of experiences that customers expect and to lower its cost to serve online orders at the same time.”
Walmart competitor Target also gained market share – albeit more moderately – gaining 120 basis points to finish the second quarter of 2024 with 7 percent of total e-grocery sales.
“Strong execution – especially in fulfilling pickup orders – and a price gap halfway between supermarkets and Walmart likely offered Target a degree of defense for its online grocery business,” Brick Meets Click said.
Supermarkets, in contrast to mass merchandiser stores such as Walmart and Target, continued to lose their e-grocery sale shares, declining 250 basis points in the second quarter to 27.3 percent of the overall market.
A separate report, “The State of Fresh Foods,” from FMI - The Food Industry Association found that fresh seafood comprised 2 percent of online grocery sales in 2023.
Around 41 percent of all food retailers’ online sales came from fresh foods, according to the report, led by dairy and produce. Meat accounted for 10 percent of online sales, while deli items accounted for 4 percent and fresh prepared foods made up 1 percent of sales.
“Fresh foods represent a major share of online sales. In comparison, the share for dry grocery was reported to be 43 percent, and frozen was 8 percent,” the report said.
