US eGrocery Market Share Report with Brick Meets Click – Insights From Q4-2024
How to Compete in an eGrocery Market Dominated by Discounted Delivery Sales
Topline eGrocery sales reached nearly $30 billion in Q4 2024, marking a 20% year-over-year (YOY) increase.
For grocers, this impressive growth identified in the newly released Q4-2024 U.S. eGrocery Market Share Report from Brick Meets Click can be viewed in two ways:
- Focus on delivery’s continuing growth, which captured 41.5% of total orders and surpassed pickup for the first time this past quarter.
- Or, look at pickup’s quiet but significant sales, which rose more than 10% YOY without the benefit of costly promotions.
Delivery’s surge highlights how the industry’s biggest players—like Walmart and Amazon—continue to expand their market share by leveraging their greatest strengths. Armed with enormous budgets and retail media networks, they’re able to afford and offset the costs of deep discounts on memberships tied to reduced delivery fees. This allows them to communicate big savings to customers and deliver convenience.
For regional grocers, however, pickup’s organic growth represents a viable opportunity. As mass retailers’ delivery costs shrink and cross-shopping trends increase, pickup provides a cost-effective, sustainable way for regional grocers to keep customers coming back. Its organic growth this past quarter proves that the service is in demand and can be enhanced by grocers to better stand out in the current eGrocery market.
Our analysis below explores these numbers in depth, and reveals how grocers can use these insights to their advantage by enhancing pickup services, building loyalty through first-party strategies, and leaning on their unique strengths to compete.
For a deeper dive behind this analysis read the full Q4 2024 U.S. eGrocery Market Share Report—available now.
➡️ Download the Q4-2024 eGrocery Market Share Report
The 5 Most Important Takeaways from the Report
1. Mass Retailers Set New Records Through Delivery
Mass retailers are pulling further ahead in the eGrocery market, driven by their ongoing strategic investment in delivery.
In Q4 2024, mass retailers captured 48% of total eGrocery sales, widening the gap over the supermarket segment’s 27%. Their reduced delivery fees were the main contributor to overall eGrocery sales climbing to almost $30 billion, up more than 20% YOY.
This enormous fourth quarter growth also broke seasonal trends. Over the past several years, the fourth quarter has traditionally matched Q3 sales, but in 2024 we saw sequential YOY growth from third to fourth quarter.
2. Delivery Overtakes Pickup—But Pickup Remains Resilient
Delivery grabbed the spotlight in Q4 2024 by surpassing pickup in total sales for the first time, with $12.7 billion compared to pickup’s $11.9 billion.
However, the story doesn’t end there.
Pickup achieved an impressive 11.3% YOY growth, driven entirely by organic demand. In contrast, delivery’s surge—as mentioned—has been heavily supported by deep discounts tied to membership plans.
For the supermarket segment, the fulfillment mix continues to shift: Delivery accounted for 53% of orders, but pickup saw a notable rebound to 45%, bolstered by expanded availability across more locations.
3. Walmart Continues to Lead the Pack
Walmart continues to dominate eGrocery, capturing 38.6% of total sales in Q4 2024, compared to the entire supermarket segment, which held 26.9%.
The aggressive discounting on annual memberships like Walmart+ has effectively removed one of the biggest barriers to delivery adoption: the explicit delivery fee.
By eliminating this upfront cost for members (except for optional fees like expedited orders or tips), Walmart has significantly lowered the friction associated with delivery, making it more accessible and attractive to a broader range of customers.
4. Shoppers are Loyal to Fulfillment Methods
Customers are sticking with their favorite receiving methods.
Repeat intent rates for pickup stayed consistent over the past quarter for both mass retailers and supermarkets. For Delivery, repeat rates went up slightly for supermarkets but actually dropped for mass retailers.
Even with this dip, larger retailers still maintain a 13-point lead in repeat intent rates for both pickup and delivery, putting the onus on grocers to boost their shopping experience to better retain customers.
5. Cross-shopping Increases
Cross-shopping continues to rise with 34.1% of supermarket customers also shopping with a mass retailer in Q4 2024.
While Target contributed to this increase, it was predominantly driven by Walmart. Over the last quarter, nearly 25% of households that regularly purchase groceries online from the supermarket segment, also made a purchase from Walmart in the same month.
Interestingly, this trend is evident across all income groups except those earning less than $50K annually, confirming Walmart’s growing appeal among wealthier demographics.
To learn more about these and other takeaways, read the full report for free.
➡️ Download the Q4-2024 eGrocery Market Share Report
5 Recommendations Based on Q4-2024 Market Share Data
1. Capitalize on Pickup’s Organic Growth
Pickup’s 11.3% YOY growth in Q4 2024 was entirely driven by organic demand, compared to delivery’s rise which has been achieved through reduced fees tied to membership discounts.
Pickup has always been the more cost-effective, sustainable fulfillment option for grocers, and yet, this advantage hasn’t been fully exploited.
Grocers should consider what the bigger retailers are doing with delivery and connect pickup services to a loyalty program or membership plan that rewards pickup customers and drives more sales.
Combining this with enhanced services like improved speed and availability while promoting its advantages over delivery—like more control and no hidden fees—can also help increase adoption and build customer loyalty.
2. Leverage Community Connections for Differentiation
One of the many reasons enhanced pickup works for grocers is because it differentiates their service from that of the bigger retailers.
Mass retailers like Walmart dominate eGrocery with their scale, but grocers need to find more ways to set themselves apart that don’t put them in the middle of an unaffordable price war. A great way to do this is by offering personalized, community-focused experiences.
That means a greater focus on locally sourced products, personalized promotions based on shopping habits, and unique in-store events that foster loyalty. Pairing these efforts with convenient pickup options—which has the added benefit of bringing the customer to the store—allows regional grocers to create an experience that’s difficult for larger retailers to replicate.
3. Develop First-party Strategies to Strengthen Customer Experience
In addition to big retailers like Walmart and Amazon using membership plans to grow delivery sales, big third-party delivery partners like Instacart and Door Dash are also employing similar strategies.
While this may lead to short-term gains for some grocers, it’s not without a cost. With third-party platforms, grocers have no control over the customer experience or the means to preserve customer data.
That’s why grocers should invest in direct-to-customer fulfillment options, offering exclusive deals for first-party services and emphasizing loyalty perks unavailable through third-party platforms. This shift not only builds a stronger one-to-one connection with customers, but also creates a more sustainable and profitable business model that isn’t dependent on the whims of a third-party marketplace.
4. Foster Customer Loyalty Through Subscription Programs
We already mentioned the potential benefits of attaching pickup services to a subscription program, but there’s even more reason to consider this strategy.
Again, look to the success of Walmart+ and the power of memberships to drive frequent orders and improve customer retention. Regional grocers can replicate this strategy by creating their own subscription models tailored to their unique customer base.
In addition to offering benefits such as discounted or free pickup, these plans could also include exclusive deals on fresh and local products, or early access to promotions. These incentives encourage repeat orders and differentiate regional grocers in a crowded market.
A well-designed subscription program not only boosts loyalty but also makes price-conscious shoppers feel like they’re getting extra value.
5. Adapt to Cross-shopping Trends with Personalized Promotions and Loyalty Programs
A lot of the recommendations above could come together in the form of personalized promotions and loyalty programs.
In Q4 2024, 34.1% of supermarket customers also shopped with mass retailers, predominantly Walmart. To counteract this trend, grocers should design loyalty programs that reward repeat customers, use personalized engagement, and target high-frequency shoppers with exclusive benefits.
This could include targeted discounts, tailored promotions, and rewards points that can be redeemed for in-store purchases or other unique perks. By combining these strategies with enhanced pickup services and community-focused initiatives, grocers can give their customers compelling reasons to stay loyal—while minimizing the draw of mass retailers.
Drive Sustainable Growth for Your Grocery Business
The overarching theme of the Q4 2024 U.S. eGrocery Market Share Report is that while delivery sales might dominate headlines, pickup presents a significant opportunity for grocers to differentiate and compete effectively.
Mass retailers like Walmart are continuing to grow their market share through their delivery promotions, but regional grocers can leverage pickup’s organic growth by incorporating it into membership plans and personalized loyalty programs to retain customers and stand out.
This report provides all of the sales data necessary—from shifting fulfillment trends to cross-shopping dynamics— to help grocers make the informed decisions that will drive sustainable growth in this highly competitive market.
Download the Q4 2024 Market Share Report to prepare your grocery business for the road ahead.