US grocery ecommerce sales will grow 17.4% in 2024 to total $219.04 billion, according to our forecast. Meanwhile, UK grocery ecommerce sales will grow only 5.1% to total $37.06 billion in 2024. “At the end of the day, consumers in the US enjoy the conveniences of delivery, but they’re not necessarily willing to pay an exorbitant fee,” said our analyst Blake Droesch, emphasizing the perceived value of Walmart+ and Amazon Prime memberships to these shoppers.

HomeGoods shut down its ecommerce business because in October it was unable to recreate the in-store treasure-hunting experience customers know and love online. Meanwhile, Amazon is struggling to master brick-and-mortar because it doesn’t know what in-store shoppers want.

Many advertisers see retail media solely as a performance marketing channel. But 7-Eleven’s retail media network, Gulp Media, is aiming higher up the funnel.

As the top two retailers in the US, Walmart and Amazon are battling for holiday success by rolling out the best deals, the fastest delivery, and the best in-store experience. Here’s who we expect will come out on top in each of those areas, plus a post-holiday outlook.

Retail media networks are rolling out more advanced targeting capabilities as advertisers seek to more accurately and effectively reach their audiences. Here are two recent examples.

Physical stores are a massive untapped opportunity for advertisers, and as retail media evolves, more networks are beginning to explore in-store media formats. Here are three recent examples.

Targeted, relevant advertising that motivates shoppers to buy is the goal of any retail marketer. But with retail media advertising sitting so close to the point of purchase, the potential upside is even greater.

Amazon Fresh, despite failing to gain traction with its brick-and-mortar endeavors, is trying to assert itself in the grocery space. Its customer base, though much smaller than competitors like Walmart and Target, is attractive to consumer packaged goods (CPG) advertisers because those shoppers are open to trying new products.

By sticking to its values, Trader Joe’s has maintained the feeling of a neighborhood store while scaling across the country, while H-E-B’s commitment to caring for its community has won it the heart of Texas. Erewhon has taken a different approach, leveraging its famous clientele and access to lifestyle brands to become a pop culture icon.

Nearly half (48.4%) of Amazon Fresh shoppers try new grocery products multiple times per month, according to an Insider Intelligence survey.

Although every app category will gain users in 2023, the average smartphone owner will install and open fewer individual apps as consumers settle on their favorites.

This year’s Groceryshop 2023 event in Las Vegas focused on marrying in-store and digital experiences, the growing retail media wave, and the benefits of personalizing messaging based on each consumer’s motivations, among many other takeaways. All of that comes as US food and beverage retail sales are expected to reach $1.378 trillion this year and surpass $1.578 trillion in 2026, according to our June forecast.

Grocery shoppers are omnichannel shoppers, our analyst Blake Droesch said on a recent “Behind the Numbers: Reimagining Retail” podcast. That means consumer packaged goods (CPG) brands should employ a mix of digital and in-store advertising strategies to engage customers where they shop.

ChatGPT use has declined over the past few months, but AI isn’t going anywhere. Retailers are innovating with their own homegrown and acquired AI tools to scale listings, improve search, and enhance personalizations.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss how younger Gen Z consumers are most likely to discover grocery products, whether this new wave of celebrity-backed brands is different from previous ones, and what social media's role in all of this is. Then, for "Pop-Up Rankings," we rank the four elements a celebrity- or creator-led consumer packaged goods (CPG) brand needs to succeed. Join our analyst Sara Lebow as she hosts analysts Blake Droesch and Carina Perkins.

Walmart has the largest audience of any digital grocery platform. But our survey found that Amazon Fresh customers were more active and willing to try new products.

Price matters to everyone, but ease and convenience play an even bigger role in purchase decisions. Plus, retailers should consider revamping their apps to garner more sales and use their target audience to guide in-store and online strategies.

Key stat: 28.0% of Gen Z consumers have discovered grocery products via search engines, compared with 16.7% that have discovered products while browsing store shelves, per our forecast.

Amazon’s advertising division ranked highest in our Power of Amazon in 2023 report. Its retail ecommerce division, Amazon’s biggest business by dollars, lost share between our initial rankings in 2021 and our current forecast.

Digital activity now plays a major role in product discovery, with younger generations driving sizable shifts in the way shoppers find new products.