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Online Grocery Pricing Research 2023

Pricing’s Potential Roles for Improving Online Grocery Performance for Regional Grocers

Mercatus, a leading provider of grocery eCommerce solutions, has sponsored a comprehensive research initiative in coordination with Brick Meets Click, a Grocery analytics and strategic insight firm, which highlights the challenging realities and critical choices ahead for regional grocers in the online market.

Introduction to the Research

The custom research report is based on a recent pricing study that analyzed how eight banners in one market implemented online pricing strategies versus in-store. The banners researched included Aldi, Costco, HEB, Kroger, Market Street, Target, Tom Thumb, and Walmart.

The following research and content is specially created for regional grocers that want to improve their profitability and customer experience of their eGrocery offering.

The report is broken down into four sections:

  1. Realities and Reminders
  2. Roadmap for Online Grocery Pricing Strategy
  3. Recommendations for Pricing Strategy
  4. Closing the Online Pricing Research Loop

The research reveals that regional grocers face a tougher fight online against low-price market leaders like Walmart, who enjoy significant advantages in terms of price, service fees, and retail media revenues. The research and report provide a landscape and roadmap for regional grocers who are looking to adapt their online pricing strategy.

The report proposes a Three C’s Framework that focuses on owning the customer connection, offering greater control over choices made, and more effectively managing costs. The report suggests that grocers should consider reorienting their fee structure to help customers save more money and realigning activities to lower costs in smarter ways.

By employing a variable fee structure, protecting advertised items, and offering a “free” pickup option, regional grocers can create a more customer-centric online shopping experience, realize labor savings, and ultimately, achieve a more sustainable path to competing online.

Let’s dive in!

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Headshot of Mark Fairhurst

Mark develops global growth strategies for Mercatus and leads the Marketing, Sales, and Customer Experience teams.