Digital Grocery Sales Increased 4% in 2024, Highlighting the Omnichannel Shift

FT. LAUDERDALE, FL, UNITED STATES, December 10, 2024 /EINPresswire.com/ -- Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from their 2024: Digital Grocery Year in Review report.

Omnichannel shopping proved to be the hero of 2024, as past volatility in digital grocery receded in favor of a new paradigm where grocery shoppers combine their interests in convenience, shopping experience, and savings.

After declining sharply in the wake of COVID-19 to just $121B (13.1% of all grocery sales) in 2023, digital grocery sales rose to $126B (13.4% of all grocery sales) in 2024. This 4.2% growth was driven by price inflation and shoppers’ evolving adoption of omnichannel capabilities.

While just 19% of shoppers regard themselves as “omnichannel shoppers,” their average monthly spend ($1,043) is higher than shoppers who shop either exclusively or mostly in a single channel like in-store or online.

Digital basket sizes rose as well, especially for larger retailers, with the average digital basket size reaching $169.7 overall (+0.8%), and $180 for large retailers (+3.5%), when compared with 2023.

Other highlights of the report include:

Digital spending increased, even as shoppers’ trips and spending reduced

—67% of shoppers said that they spent more with their preferred digital grocer than they did in 2023

—But 39% of shoppers said that they actually reduced the number of digital orders they made in 2024

—There was 7% less organic traffic to digital channels in 2024 as there was in 2023

Instacart recovered, even as third party growth slowed

—14.2% of digital grocery sales were through third parties in Q3 2024, down 12.88% from Q3, 2023, (when third party sales were 16.3%) and less than half of what they were in January, 2022 (31.3%)

—77% of shoppers who used third-party digital platforms in 2024 regarded Instacart as their preferred vendor. This was represented in a 2.3% increase in Instacart’s market share in Q3 2024 as compared to Q2 2024

The popularity of GLP-1 inhibitors has impacted grocery sales

—97% of those shoppers taking GLP-1 inhibitors reduced their grocery spending, by an average of 11%

—63% of grocers plan to change their merchandise assortments, directly in response to GLP-1 drugs in 2025

—GLP-1 inhibitors have created new winners including healthy choices like lean protein (+27%) and meal replacements (+19%) as well as losers like snacks and confectionary (-52%) and prepared baked goods (-47%)

"Rather than digital grocery taking over, or receding into the shadows, omnichannel shopping became the clear paradigm of choice in 2024," said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio.

“Although just one in five grocery shoppers currently utilize multiple channels evenly, they outspend their single channel peers by a significant amount. Grocers, therefore, can not afford to overlook the importance of omnichannel shoppers.”

"Large retailers are reaping the bounties of the investments they made in digital grocery," added Charlie Kaplan, Chief Product and Marketing Officer at Wynshop. "To maintain their market share amongst competition from large grocers and third-party digital grocery platforms, small and medium-sized grocers must learn to adapt their online merchandise and digital shopping experience according to the changing demands of omnichannel consumers.”

Grocery Doppio’s 2024: Digital Year in Review report is based on a cumulative analysis of 3 million shopper orders and surveys of 55,670 shoppers and 5,564 grocery executives between January 1, 2022 to December 2, 2024. It used over 250 attributes for prediction models.

The report is one of many resources available on Grocery Doppio, a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth. Grocery Doppio brings together research-driven grocery content, fact-based observations, and industry expert perspectives, to help identify improvement opportunities for grocery retailers.

On Thursday, December 12 at Noon ET Incisiv and Wynshop will host a webinar, State of Digital 2024: A Recap of Digital Grocery Spends and Trends to review the findings of Grocery Doppio’s “2024: Digital Year in Review” and discuss predictions for 2025. Register at grocerydoppio.com to attend.

To download the 2024: Digital Grocery Year in Review report, visit grocerydoppio.com.

About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at www.incisiv.com.

About Wynshop
Wynshop is an ambitious team of digital innovators helping grocers and other local store-based retailers grow wildly successful online businesses. Wynshop’s easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and uses advanced AI to help retailers personalize the entire digital shopping experience and remain profitable. Learn more at www.wynshop.com.

Laurel Getz
Wynshop Inc
+1 203-767-5963
email us here

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