Historically, online grocery offerings have found success in densely populated, urban areas. But Walmart’s growth, in particular, can be attributed to its highly suburban brick-and-mortar footprint. Having long ago established a physical presence and loyal consumer base, Walmart is now focused on steering these customers online.
“Walmart’s aggressive rollout of click-and-collect capabilities over the past year is paying dividends as customers take advantage of the service,” said Andrew Lipsman, principal analyst at eMarketer. “Meanwhile, Amazon is clinging to its leadership position as it leans on its fast delivery capabilities, but will clearly be looking to build out more click-and-collect operations over the next couple years.”
We forecast that food and beverage ecommerce is expected to reach $19.89 billion this year, representing just 3.3% of US ecommerce sales and 2.0% of total category spending. Food and beverage is the fastest-growing category (18.2%), despite being the least-penetrated retail ecommerce category. As US internet users acclimate to stocking their shelves this way, the market may be approaching a critical mass. We expect the category will continue to grow at above-average rates to reach $38.16 billion by 2023.