- 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 stepped up to keep up with this shift in consumer spending. And for the first time, we are publishing the top five grocery ecommerce retailers in 2021. Here they are ranked, from top to bottom by grocery ecommerce sales for this year.
Walmart ($30.96 billion)
Walmart leads the pack, generating nearly $31 billion in 2021—and making up 25% of the overall market. Last year, the big box retailer surpassed Amazon as the top grocery retailer. Grocery ecommerce sales for Walmart rose by 84% in 2020, while Amazon’s sales grew by 63%.
“Walmart has benefitted thanks to 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 ($29.12 billion)
Amazon has long been a key player in the online grocery space, and has benefitted from its acquisition of Whole Foods. However in comparison, the ecommerce giant’s click and collect offering is just a fraction of what Walmart offers.
That said, Amazon is expanding its brick-and-mortar presence with Amazon Fresh and Amazon Go stores.
Kroger ($15.02 billion)
Last year, Kroger broke into our top 10 US ecommerce companies, surpassing $13 billion in ecommerce sales in 2020. And Kroger is continuing to make a name for itself in the space thanks in large part to the many digital investments the company has made over the years, including building out its own logistics.
“Kroger is in fact one of the more advanced ecommerce players when compared to traditional supermarkets like Albertsons, Ahold Delhaize and Publix,” said Liu. “In fact, ecommerce represents 12.5% of total company sales (excluding fuel) in 2021—this is higher than the market average of 9.6%, and more advanced than the next supermarket chain in our list, Albertsons at 9.2%.”
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Target ($6.04 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.
In 2020, Target saw its grocery ecommerce sales increase by 156%. This substantial growth was due to the big-box retailer rolling out curbside pickup for its fresh and perishable items, which it started doing in July 2020.
Curbside pickup, as well as Target’s same-day delivery grocery offering via Shipt—which it acquired in 2018—will help the company continue growing in the space.
Albertsons Cos. ($6 billion)
Albertsons Cos. grocery ecommerce sales will reach $6 billion this year, a 13.7% increase from 2020. 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.