Walmart and Amazon lead consumers’ online grocers of choice
Walmart is well ahead of Amazon as the top consumer destination for online groceries, according to new research from CPG/grocery digital commerce platform Chicory.
Of more than 1,000 U.S. adults surveyed in January, more than 35% named Walmart as the retailer they use most often to buy groceries online, according to the third annual Chicory Online Grocery User Survey. . Online retail giant Amazon finished a distant second, cited by around 23% of respondents as their most used online grocer. Third-party online grocery provider Instacart was the only other company to reach double digits, named by 10% of survey participants.
Target (9%), Kroger (7%), Albertsons/Safeway (3%), Stop & Shop/Giant Food (2%) and Target’s delivery subsidiary Shipt (1%) are also cited by consumers as leading online grocery destinations. About 8% of respondents named other retailers. (*Note: percentages are approximate.)
“Walmart and Amazon topped online grocery stores for the third year in a row,” New York-based Chicory said in the study. “Instacart, notably, has retained its position at #3. Considering that Instacart has no physical locations and is solely focused on grocery delivery, its #3 spot is impressive and reflects the increase global popularity of digital. grocery solutions.
By age, Target attracts a large percentage of 18-44 year olds as the online grocer of choice, but Walmart and Amazon respectively top all generational groups as the most chosen online grocers. Amazon was the top choice for people aged 60 and over, while Walmart had the most traction among those aged 45 to 60. The conventional supermarket chain Kroger also had its largest share of online grocery users in this age group. Instacart, meanwhile, had its highest number of online grocery users in the 18-29 age segment.
“Given that Walmart is a household name with physical stores and Instacart is a younger, digital-focused retailer, this demographic difference follows,” Chicory noted. “As our younger generation of respondents matures, we are likely to see more households adopting and trusting digital retailers like Instacart or Shipt.”
In January, 72% of shoppers surveyed by Chicory said they had shopped online in the past 90 days. This percentage reflects the increase in online grocery usage since before the pandemic, as just over 70% of consumers shopped online in the previous 60 days in January 2021 and over 50% did so in January 2020.
“Digital grocery adoption has steadily increased over the past two years, with the biggest jump in adoption occurring between January 2020 and April 2020, of course,” observed Chicory. “Respondents to the January 2021 survey purchased groceries online the most over a 60-day period, at 70.27%.”
Fifty-two percent of January 2022 respondents placed grocery orders online at least once a week, with 10% doing so more than once a week. About 33% order groceries online once a month and about 14% buy groceries online for special occasions or holidays.
Half of those polled by Chicory said they typically spend between $50 and $100 on online grocery orders, with nearly 60% doing so at least once a week. Thirty-five percent of consumers surveyed said they spend more than $100 on online grocery orders, up nearly 16% from 2021. About 15% of respondents typically spend less than $50 for online grocery shopping.
“For 33% of shoppers, staples and pantry supplies drive the majority of their spend. This suggests shoppers are relying on online ordering for the most part, not just impulse cravings, like snacks. These items also hold up well during transit, making them a no-brainer to add to cart,” Chicory explained in its report. “Surprising to some, dairy or meat are the second most popular items to make up an online shopper’s shopping cart. Again, this may be a nod to shoppers using digital solutions to quickly get must-have items, like milk, cheese and eggs. As online grocery adoption increases, we expect the convenience of shoppers ordering perishable items, such as dairy or fresh produce, to increase. »
What drives online grocery shopping? Mainly practical, the discoveries of Chicory show it. Forty-six percent of respondents cited convenience/time constraints as the primary reason for ordering groceries online. Consumers also cited product availability/accessibility (19%), price (14%), health/safety concerns (10%), and preference for a digital experience over an in-store experience (close to 10%), according to the study (approximate percentages).
The fact that only 10% of shoppers mentioned health/safety concerns indicates that high online grocery usage “isn’t just a byproduct of the pandemic,” Chicory added.
“The results of this latest survey reaffirm that digital grocery is here to stay as consumers continue to prioritize convenience and simplicity,” Chicory CEO and co-founder Yuni Sameshima said in a statement. a statement. “Brands looking to reach today’s grocery shopper in high-intent moments need to invest in solutions that will extend the on-premises experience to off-platform locations like digital recipes.”