- Walmart takes the lead for grocery ecommerce sales.
- Other retail giants, including Kroger, are investing in digital and building out their own logistics.
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Demand for online grocery accelerated last year, and many retailers were forced to adapt their marketing strategies to meet evolving spending behaviors. More than half the US population will make at least one digital grocery purchase this year, according to our latest Grocery Ecommerce Sales Forecast.
To offer insight on how the top retail companies are successfully meeting consumer demands and staying competitive in the market, we are publishing the top five grocery ecommerce retailers in 2022, based on our estimates. Here they are ranked, from top to bottom by grocery ecommerce sales for this year.
Walmart ($37.62 billion)
Walmart leads the pack, and will generate over $37 billion in 2022 according to our estimates—making up 25% of the overall market. The retailer first surpassed Amazon’s grocery ecommerce sales (63%) in 2020—when Walmart’s digital grocery sales rose by 84% in a single year.
Walmart continued to beat out Amazon as the top grocery retailer in 2021—increasing by 14% in ecommerce sales, while Amazon’s sales grew by just under 13%,” per Insider Intelligence’s Grocery Ecommerce Sales Forecast.
Walmart has benefitted from “its growing same-day offerings such as click-and-collect, which is available in more than 3,800 stores, as well as Express Delivery, which more than 3,200 of its locations offer,” said Cindy Liu, eMarketer director of forecasting at Insider Intelligence.
Amazon ($35.10 billion)
Amazon has been a key player in the online grocery space for some time, and has profited from its $13.7 billion acquisition of Whole Foods. “Combined, amazon.com and Whole Foods account for 2.4% of the grocery market, per data from Numerator,” said Rachel Wolff, analyst at Insider Intelligence.
“While this is a relatively strong showing, Amazon’s grocery share is still significantly below that of market leader Walmart (18%),” added Wolff.
As customer expectations for online grocery shopping grow, and as other ecommerce retailers increase their digital capabilities, Amazon will have to add to its suite of digital grocery features to avoid losing shoppers. Furthermore, the retail giant will have to build out its brick-and-mortar presence to rival existing retailers, and have a real shot at dominating the market.
Kroger ($18.37 billion)
Kroger broke into our top 10 US ecommerce companies in 2020, surpassing $13 billion in ecommerce sales that year, and has leveraged its many investments, such as building out its own logistics, to continue to make a name for itself over the last couple years. The grocer’s sales are showing no sign of slowing, as they are poised to grow 22% in 2022.
“Kroger is in fact one of the more advanced ecommerce players when compared to traditional supermarkets like Albertsons, Ahold Delhaize and Publix,” said Liu.
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Target ($7.57 billion)
Compared to others on this list, Target may not be considered a traditional grocer, but the advancements the big-box retailer has made over the years has propelled its growth in the ecommerce grocery arena.
Target saw its grocery ecommerce sales increase by 156% in 2020, due to its roll-out of curbside pickup for its fresh and perishable items amid the pandemic. According to our latest forecast,the retailer’s ecommerce sales grew by 14% last year, and are set to increase by 25% in 2022.
Target’s same-day delivery grocery offering via Shipt—which it acquired in 2018—are expected to help the company to continue to grow in the space.
Albertsons Cos. ($7.48 billion)
Albertsons Cos. grocery ecommerce sales will reach $7 billion this year, a 24.6% increase from 2021. Albertsons has been working to ramp up its same-day services, but the company has some catching up to do to be at the same level as its closest direct competitor, Kroger.
While the company has pulled back on its own end-to-end delivery in some markets, Albertsons is making significant pushes, through partnerships with Uber and DoorDash, in addition to its existing same-day services with Instacart.