The pandemic also caused a spike in grocery app downloads, likely aiding CPG’s mcommerce growth. For example, the Walmart Grocery app held the No. 1 position in the retail app category on April 5, 2020, up 460% from its daily average in January 2020, according to mobile app analytics firm App Annie. As mobile spending grows, CPG ad spending on desktops/laptops will decrease 8.7% to $5.20 billion.
Leaning into the rapidly growing onlinegrocery space with this partnership could put Klarna a step ahead of the competition: US grocery retail ecommerce sales are projected to reach $112.89 billion, according to our forecasts. And it could help Klarna break into in-store grocery, which is even more lucrative.
It said Walmart’s share of the onlinegrocery market dropped from 40% before the pandemic to 31% in February, while Instacart’s share jumped from roughly 20% to 30%. The pandemic put a spotlight on onlinegrocery services, Instacart’s specialty, but Walmart’s market share growth could mean its online offerings are helping fend off competition.
Onlinegrocery took off in 2020, and the influx of new visitors, coupled with supply chain uncertainties, made customer experience more crucial than ever for these retailers. Thrive Market, a membership-based digital grocer, embraced the challenge.