Grocers are offering more discounts while shoppers are interested in more value, with price as the most important factor in their purchase decision. % of digital sales have gone marginally down while % of in-store sales have marginally gone up.
H1 grocery sales were $458 billion, up 3.8% compared to H1 '23. Digital sales at $61 billion were up 2.4% compared to H1 '23. Prices are high, even as price increases have reduced, and the average digital shopper baskets have dropped.
Prepared food sales have risen, with 63% of grocers noting an increase over the past six months, and 69% of them view their prepared food options as a competitive differentiator. The primary drivers of these purchases are convenience and cost.
In Q1 2024, grocery sales remained strong at $230 billion, with digital sales increasing to $31.4 billion and 72% of grocers reporting improved inventory performance compared to the same period last year. Larger retailers, in particular, have seen better inventory availability.
81% of grocers prioritize personalization for competitiveness, yet 92% of shoppers find their grocery shopping experience lacking in personalization compared to their overall digital experience.
Digital sales were ~$11 billion in October 2023. Third-party platform sales dipped below 16% for the second time this year. Average digital grocery baskets dipped in October 2023.
Uncover essential strategies for grocers navigating the increasingly shopper-centric future, from the surge in digital sales to unlocking the potential of omnichannel shoppers.
Kroger's third-quarter sales hit $34 billion, driven by the "Leading with Fresh" initiative, certifying 2,053 stores and emphasizing fresh produce. Digital engagement rose by 13%, with 69% of 2023 grocery sales digitally influenced. Kroger adapted its full-year sales projection to a range of 0.6% to 1%, demonstrating strategic flexibility.