Food & Beverage | Digital Commerce 360 https://www.digitalcommerce360.com/industry/food-beverage/ Your source for ecommerce news, analysis and research Wed, 14 Feb 2024 14:20:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png Food & Beverage | Digital Commerce 360 https://www.digitalcommerce360.com/industry/food-beverage/ 32 32 Hy-Vee will offer same-day delivery with Instacart https://www.digitalcommerce360.com/2024/02/14/hy-vee-will-offer-same-day-delivery-with-instacart/ Wed, 14 Feb 2024 14:20:35 +0000 https://www.digitalcommerce360.com/?p=1317342 Hy-Vee will partner with Instacart on same-day delivery, the retailer announced Feb. 8. The grocery chain will use Instacart’s fulfillment-as-a-service (FaaS) capability across its ecommerce channels, including Hy-Vee.com, WholeLotta.com, HyveeDeals.com, ShopPetShip.com and the Hy-Vee app. The relationship with Instacart will allow Hy-Vee to expand its delivery capacity to meet growing demand, it said. Hy-Vee will […]

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Hy-Vee will partner with Instacart on same-day delivery, the retailer announced Feb. 8. The grocery chain will use Instacart’s fulfillment-as-a-service (FaaS) capability across its ecommerce channels, including Hy-Vee.com, WholeLotta.com, HyveeDeals.com, ShopPetShip.com and the Hy-Vee app. The relationship with Instacart will allow Hy-Vee to expand its delivery capacity to meet growing demand, it said.

Hy-Vee will benefit from the nearly 600,000 shoppers in Instacart’s network that can pick up, pack and deliver orders, Instacart said.

The retailer is also able to accept EBT SNAP online payments through Instacart.

Instacart and Hy-Vee first worked together in 2018. At the time, Hy-Vee introduced same-day delivery through the Instacart app, with delivery in as little as an hour.

Hy-Vee ranks No. 199 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Instacart fulfillment as a service

Hy-Vee was able to integrate Instacart’s FaaS into its existing ecommerce operation using an API, the retailer said. Ecommerce operations platform company UpShop facilitated the integration between Hy-Vee and Instacart, the fulfillment operator said.

“We’re proud to strengthen our partnership with Hy-Vee and equip them with the technology and tools they need to meet customers’ needs,” Ryan Hamburger, vice president of retail partnerships at Instacart said in a press release. “Our goal is to empower our partners and offer seamless and personalized shopping experiences. We’ve spent more than a decade focusing on the care and craft of grocery and are continuing to push the envelope by creating even more fulfillment solutions that help our retail partners grow and meet the evolving needs of their customers and businesses.”

Instacart also just announced the addition of Whole Foods to the platform in 14 markets across Canada. Whole Foods is owned by Amazon, which ranks No. 1 in the Top 1000. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by 2023 third-party gross merchandise value (GMV).

Where does Hy-Vee operate?

Hy-Vee has more than 550 locations across eight states in the Midwest, with headquarters in West Des Moines, Iowa. It has 75,000 employees. The supermarket chain is employee-owned. 

Hy-Vee records $13 billion in annual sales, according to the grocer’s website.

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Kroger adds AI to its marketplace https://www.digitalcommerce360.com/2024/02/13/kroger-adds-ai-to-its-marketplace/ Tue, 13 Feb 2024 21:08:37 +0000 https://www.digitalcommerce360.com/?p=1317299 Kroger Co. is adding new artificial intelligence (AI) capabilities for sellers to its online marketplace. The grocery retailer will partner with retail analytics firm Intelligence Node on the new technology, it announced Feb. 8. AI will give Kroger customers a better experience through clearer and more informative product listings, the grocer said in a press […]

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Kroger Co. is adding new artificial intelligence (AI) capabilities for sellers to its online marketplace. The grocery retailer will partner with retail analytics firm Intelligence Node on the new technology, it announced Feb. 8.

AI will give Kroger customers a better experience through clearer and more informative product listings, the grocer said in a press release. Meanwhile, third-party sellers on the marketplace will be able to use AI for content management and copy optimizations to improve Search Engine Results Pages (SERPs).

“The Kroger Marketplace involves a complex matrix of elements that need to be effectively managed to deliver a seamless customer experience online,” Michael Murphy, group vice president of analytics and execution at Kroger, said in a statement. “From product copy and ratings to reviews and taxonomy, customers are searching out more information than ever before and providing what they need, when they need it is important. We look forward to working with Intelligence Node to deliver an amazing customer experience while empowering our sellers to improve their business performance.”

Kroger ranks No. 8 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. 

Integrating AI with Kroger’s other tech providers

Intelligence Node’s technology will work with Mirakl, which provides the platform for Kroger’s marketplace. 

“We look forward to supporting Kroger’s growth plans with our ability to provide content audit, optimization, and execution directly within the Mirakl platform to help improve shopper conversion and seller recruitment and retention,” Intelligence Node cofounder and CEO Sanjeev Sularia said.

Mirakl also provides ecommerce platforms for Best Buy, Macy’s and Saks Fifth Avenue.

Best Buy, Macy’s and Saks rank No. 7, No. 17 and No. 28, respectively.

Kroger online marketplace

Kroger launched its marketplace in 2020 as a bid to compete with Amazon and Walmart. 

Walmart ranks No. 2 in the Top 1000. Amazon ranks No. 1 in the Top 1000. Walmart is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the top 100 online marketplaces. Amazon is No. 3 in marketplaces. Kroger does not rank in the marketplace database.

Kroger’s marketplace began as an extension of Kroger Ship, launched in 2018. Kroger Ship is an ecommerce platform for non-perishable grocery items from third-party sellers. The marketplace added an additional 50,000 items. Those were mostly non-grocery products across categories including specialty items, toys and housewares.

The online grocery retailer has reported digital sales growth for several quarters in a row. Most recently in its third fiscal quarter of 2023 ended Nov. 4, Kroger digital sales grew 11% year over year. Delivery sales grew 11% over the same period. Digital engaged households grew 13%, Kroger said. 

Kroger chief financial officer Rodney Millerchip called digital sales a “growth engine” for the grocery retailer. “Everything we continue to see gives us that belief it will continue to be an opportunity to drive deeper customer engagement and growth,” he told investors in November.

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Online grocery sales grow in January to start the year https://www.digitalcommerce360.com/2024/02/12/online-grocery-sales-january-positive-note/ Mon, 12 Feb 2024 22:30:26 +0000 https://www.digitalcommerce360.com/?p=1317257 Online grocery sales grew 2% year over year in January, but 2024 still began with mixed results, according to data from the monthly Brick Meets Click and Mercatus Grocery Shopping Survey. Survey data showed that the number of households that bought groceries online grew. However, there was a downward year-over-year trend in order frequency and […]

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Online grocery sales grew 2% year over year in January, but 2024 still began with mixed results, according to data from the monthly Brick Meets Click and Mercatus Grocery Shopping Survey.

Survey data showed that the number of households that bought groceries online grew. However, there was a downward year-over-year trend in order frequency and average order value (AOV), Brick Meets Clicks and Mercatus reported.

They conducted the survey at the end of January 2024 with 1,745 respondents who shop for groceries online. Results compare with those from a January 2023 survey of 1,735 online grocery shoppers.

January online grocery sales in the US

Brick Meets Click and Mercatus define the three receiving methods for online grocery sales as:

  • Delivery: Includes orders received from a first- or third-party provider like Instacart, Shipt or the retailer’s own employees.
  • Pickup: Includes orders received by customers either inside or outside a store or at a designated location/locker.
  • Ship-to-home: Includes orders that are received via common or contract carriers like FedEx, UPS, USPS, etc.

Ship-to-home online grocery sales grew 7.8% year over year to reach $1.5 billion in January. That makes it the only segment of the three to grow year over year, as delivery remained flat at $3 billion and pickup declined 1.9% to $4.0 billion. Ship-to-home also saw a larger order volume in January 2024 as well as a 7% AOV increase.

Still, pickup had the most sales of the three categories, finishing the month with nearly half (47.4%) of online grocery sales. Meanwhile, the 3% growth in AOV for online grocery sales opting for delivery did not offset the larger decline in order volume, Brick Meets Click said.

“When more than 10% of U.S. households have less money to spend on groceries this year than they did last year, changes in buying behavior are certainly expected,” said David Bishop, partner at Brick Meets Click. “The reduction in SNAP payments that took effect at the end of February 2023 is one of the factors driving the flight-to-value trend which we’ve observed and tracked since mid-2023.”

Amazon, Walmart and the online grocery sales arena

Walmart and other mass merchants continued to outperform the broader online grocery sales market, Brick Meets Click said. Mass merchants expanded their bass of monthly active users by almost 10%, according to Brick Meets Click data. They also grew AOV in January, helping to compensate for flat year-over-year order frequency.

At the same time, the number of monthly active users at supermarkets declined more than 5%, and the average number of orders fell at a larger rate, Brick Meets Click said without specifying that rate.

Amazon accounts for the largest share of ship-to-home online grocery sales, Brick Meets Click said. The retailer’s sales improved compared to 2023, “but those improvements need to be put into context,” Brick Meets Click added.

Amazon had lost a “large” number of monthly active users in January 2023, making the growth in January 2024 “driven partially by easier comparable results,” Brick Meets Click said.

“Overall, Amazon’s year-over-year MAU gains more than offset the drop in order frequency, and moderate AOV gains also helped drive its positive sales results,” Brick Meets Click said.

Amazon is No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Walmart ranks No. 2.

“Competing online is only getting more challenging for regional grocers as customer expectations continue to increase,” said Mark Fairhurst, global chief growth officer at Mercatus. “So, beyond improving key elements of the experience, like fill rates, wait times, and product quality, regional grocers also need to work even harder to identify additional ways to help their customers save money.”

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An alcoholic beverage distributor’s customers embrace B2B ecommerce https://www.digitalcommerce360.com/2024/02/01/republic-national-customers-embrace-b2b-ecommerce/ Thu, 01 Feb 2024 20:37:10 +0000 https://www.digitalcommerce360.com/?p=1316592 B2B customers of Republic National Distributing Co. are giving the company a reason to celebrate ecommerce. “A large and growing number of our customers are now embracing B2B ecommerce as a complementary vehicle to engage with us,” says Nick Mehall, president and CEO. He notes that the distributor’s ecommerce site, eRNDC, “has demonstrated significant market […]

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B2B customers of Republic National Distributing Co. are giving the company a reason to celebrate ecommerce.

Nick_Mehall_RNDC

Nick Mehall, president and CEO, Republic National Distributing Co.

“A large and growing number of our customers are now embracing B2B ecommerce as a complementary vehicle to engage with us,” says Nick Mehall, president and CEO. He notes that the distributor’s ecommerce site, eRNDC, “has demonstrated significant market adoption over the past twelve months.”

Mehall notes that 2023 sales transacted through the eRNDC ecommerce platform reached $800 million, spurred by a 32% year-over-year increase in the number of monthly active online customers.

RNDC says its online customers in 21 states can shop among 6,700 brands, using such features as AI-powered site search, product recommendations and product assortments curated for local markets.

And RNDC expects the good times to continue.

Emily Xu - RNDC

Emily Xu, senior vice president of ecommerce, Republic National Distributing Co.

“Looking ahead to 2024, we are anticipating more customers will leverage the platform to discover products and brands,” says Emily Xu, senior vice president of ecommerce. “We are also seeing more suppliers incorporate B2B platforms like eRNDC as building blocks of their commercial strategy.”

Republic National ecommerce investments pay off

Mehall says RNDC has invested in its proprietary ecommerce platform over the last few years to “meet the demands and the complexity of our industry, and our results indicate our strategy is firmly taking hold.”

He adds: “By directly providing 24/7 access and making product information easily accessible to customers and our sales reps, we are bringing brands closer to customers. By offering order dashboards, invoices, and online payments, we also free up our sales team from some of the administrative tasks and give them more time to spend with customers.”

RNDC says it is also using its ecommerce platform to better understand how different types of customers shop for products.

In the past year, the distributor analyzed shopping behavior data collected on eRNDC to learn that account customers tend to search by category, with top search terms of tequila, bourbon and champagne.

It also learned that other customers RNDC defines as “off-premise” tend to search first by brands.

Xu says RNDC expects more ecommerce improvements to come.

“With the fast development in AI and machine learning, we are very excited to partner with our sales team, our suppliers, and our customers to continue evolving our platform to be the best collaborative ecommerce platform that seamlessly connects three tiers of the beverage alcohol industry,” she says.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Grocery report shows best curbside pickup experience at Albertsons https://www.digitalcommerce360.com/2024/01/24/best-curbside-pickup-albertsons/ Wed, 24 Jan 2024 17:08:04 +0000 https://www.digitalcommerce360.com/?p=1316103 Retailers rethought curbside pickup in 2023, but it still plays a significant role in attracting customers — especially among grocers. A new report shows which stores are delivering the best curbside experiences, along with other pieces of the online ordering process for consumers. Who has the best curbside pickup experience? The study from the market […]

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Retailers rethought curbside pickup in 2023, but it still plays a significant role in attracting customers — especially among grocers. A new report shows which stores are delivering the best curbside experiences, along with other pieces of the online ordering process for consumers.

Who has the best curbside pickup experience?

The study from the market research firm Ipsos looked at customer satisfaction among shoppers at 17 major grocers in the U.S., including Albertsons, Aldi, Walmart and Whole Foods Market.

Albertsons ranked No. 1 for its curbside pickup service with a 97% rate of “very satisfied” responses, according to Ipsos. Amazon Fresh, meanwhile, received high marks as well, with the most respondents (76%) saying it was the brand they were most likely to use again.

Rise of curbside pickup in recent years

“From online ordering to meal delivery services, what started during COVID-19 as a necessity has morphed into a method of shopping that people didn’t realize they needed in their everyday lives,” said Silvana Daehn, vice president at Ipsos’ Channel Performance.

“Big-box retailers who sell groceries are making significant ecommerce and infrastructure investments to streamline the ordering and fulfillment processes, from signage and parking to staffing,” Daehn said. “Their goal is to make the buying of groceries and other household items a single, seamless transaction. Pure-play grocers need to invest to keep up.”

Other areas where grocers were evaluated

For customers choosing delivery, Amazon’s Whole Foods Market earned the No. 1 ranking with an 83% “very satisfied” response rate. Albertsons also showed up in that category with the highest rate of delivery customers (61%) saying they were “extremely likely” to use it again.

Overall, Target, Walmart and Albertsons received the best results, with each improving over 2022.

Albertsons is No. 26 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Amazon ranks No. 1, while Walmart is No. 2, and Target is No. 5. In addition, Albertsons ranks No. 2 in the Food & Beverage category of the Top 1000.

Two of the most determinant facts for customers in their responses were reliability and accuracy, according to Ipsos. The report drew from a survey in fall 2023 that included 1,200 Americans.

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Lawsuit threatens Kroger Albertsons merger https://www.digitalcommerce360.com/2024/01/19/lawsuit-threatens-kroger-albertsons-merger/ Fri, 19 Jan 2024 15:32:26 +0000 https://www.digitalcommerce360.com/?p=1315841 Washington’s state attorney general is trying to stand in the way of the proposed merger between Kroger Co. and Albertsons with a new lawsuit. State attorney general Bob Ferguson filed a lawsuit in King County Superior Court in an attempt to block the deal, The Seattle Times first reported. The two grocery retailers first proposed […]

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Washington’s state attorney general is trying to stand in the way of the proposed merger between Kroger Co. and Albertsons with a new lawsuit.

State attorney general Bob Ferguson filed a lawsuit in King County Superior Court in an attempt to block the deal, The Seattle Times first reported.

The two grocery retailers first proposed the deal in 2022. Kroger was slated to buy Albertsons for $24.6 billion, pending regulatory approval. The merger would allow the chains to create a “premier omnichannel food retailer,” Kroger said in a statement at the time.

Kroger is No. 8 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Albertsons ranks No. 26. The two chains also make up the first and second largest retailers in the food and beverage category of the Top 1000.

Why is the attorney general suing to stop the merger?

Ferguson says the merger would give Kroger a near-monopoly in Washington.

“The Proposed Transaction would combine the two largest — and, in some areas, the only — supermarkets in many communities across Washington, which is likely to lead to higher prices, lower quality, and less variety in many local markets throughout Washington,” the lawsuit reads. 

Kroger and Albertsons are the two largest grocery chains in Washington. With more than 300 combined locations in the state, together they account for more than 50% of total grocery sales. 

“This merger is bad for Washington shoppers and workers,” Ferguson said. “Free enterprise is built on companies competing, and that competition benefits consumers. Shoppers will have fewer choices and less competition, and, without a competitive marketplace, they will pay higher prices at the grocery store. That’s not right, and this lawsuit seeks to stop this harmful merger.”

Kroger and Albertsons previously agreed to sell 100 stores in Washington in hopes of gaining regulatory approval. That’s not enough to offset the impact of the merger on Washington consumers, the lawsuit says, calling the move “woefully inadequate.”

Kroger and Albertsons respond to the lawsuit

The two retailers released a joint statement regarding the lawsuit.

“We are disappointed in Attorney General Ferguson’s premature decision to file a lawsuit while the merger is still under regulatory review. We remain in active and ongoing dialogue with the FTC and the other state Attorneys General,” they said in an emailed statement.

“The merging parties will vigorously defend this in court because we care deeply about our customers and the communities we serve, and this merger will result in the best outcomes for Washington consumers,” the statement continues. Kroger CEO Roger McMullen previously promised to fight for the merger in court if necessary.  

“Blocking this merger would only serve to strengthen larger, non-unionized retailers like Walmart, Costco and Amazon, by allowing them to maintain and increase their overwhelming and growing dominance of the grocery industry. In contrast, Kroger and Albertsons Companies merging will bring lower prices to more customers, strengthen and create good-paying union jobs, and bring more fresh, affordable food to more communities” Kroger and Albertsons said.

Amazon, Walmart and Costco and rank No. 1, No. 2, and No. 6, respectively, in the Top 1000. Digital Commerce 360 categorizes them as mass merchants, rather than food and beverage retailers.

Workers at Kroger and Albertsons are unionized with The United Food and Commercial Workers International Union (UFCW). The UFCW voted in May to oppose the merger.

The state of online grocery sales

U.S. online grocery sales declined slightly in 2023, according to annualized results from the monthly Brick Meets Click/Mercatus Grocery Shopper Survey. Sales totaled $95.8 billion, $97.0 billion in 2022 and $97.6 billion in 2021.

Meanwhile, Kroger and Albertsons both grew digital sales in their most recent fiscal quarters. Kroger grew online sales 11% year over year in its third quarter ended Nov. 4, 2023. Albertsons grew its online sales 19% in its second quarter ended Sept. 9.

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US online grocery sales decrease in 2023 https://www.digitalcommerce360.com/2024/01/18/us-online-grocery-sales-decrease-in-2023/ Thu, 18 Jan 2024 15:41:03 +0000 https://www.digitalcommerce360.com/?p=1315744 U.S. online grocery sales in 2023 reached $95.8 billion, according to annualized results from the monthly Brick Meets Click/Mercatus Grocery Shopper Survey. That’s a 1.2% decline from 2022, which Brick Meets Click and Mercatus attributed primarily to a decline in order frequency among online grocery shoppers. The data shows that U.S. online grocery sales decreased […]

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U.S. online grocery sales in 2023 reached $95.8 billion, according to annualized results from the monthly Brick Meets Click/Mercatus Grocery Shopper Survey.

That’s a 1.2% decline from 2022, which Brick Meets Click and Mercatus attributed primarily to a decline in order frequency among online grocery shoppers. The data shows that U.S. online grocery sales decreased from 2021 to 2022, then again from 2022 to 2023. Online grocery sales had dropped to $97.0 billion in 2022 from $97.6 billion in 2021.

According to Brick Meets Click and Mercatus, the data is based on more than 21,000 survey responses collected in each of those years from adults, 18 years and older, who participated in the household’s grocery shopping. They define the term “grocery” as product categories commonly found in a conventional grocery store across fresh and packaged products.

“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click. “Despite the challenges, Pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotions that aided Delivery in 2023.”

US online grocery sales by channel in 2023

Online grocery sales that customers opted to pick up — in stores, curbside, at lockers or via drive-up — remained flat in 2023 compared to 2022. Pickup sales were also the largest among three categories, the other two being ship-to-home and delivery.

Brick Meets Click and Mercatus define delivery as including those from first- and third-party providers. Ship-to-home includes common and other parcel carriers.

In 2023, online grocery sales designated for pickup brought in $44.1 billion. That’s flat compared to 2022 and growth over 2021, when it was $43.9 billion.

Meanwhile, online grocery sales for delivery decreased to $35.4 billion in 2023. That’s down from $35.8 billion in 2022 but up compared with $32.5 billion in 2021.

The largest contraction in online grocery sales was among ship-to-home orders, which dipped to $16.3 billion in 2023. That continues a downward trend from $17.1 billion in 2022 sales and $21.2 billion in 2021 sales.

Key findings compared with 2022

Average order value increased 3% year over year in 2023 when aggregating results from all three fulfillment methods. Although that does not account for price-inflation adjustments, each receiving method had year-over-year increases.

Average order value increases

  • Delivery: 3.0%
  • Pickup: 2.6%
  • Ship-to-home: 1.7%

However, order frequency contracted, Brick Meets Click and Mercatus found. So although the price per order increased, the average number of monthly online grocery orders fell 6% year over year. That follows a 4% decline from 2021 to 2022.

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Ecommerce and retail stories to watch at CES https://www.digitalcommerce360.com/2024/01/08/ecommerce-retail-stories-to-watch-at-ces/ Mon, 08 Jan 2024 22:13:09 +0000 https://www.digitalcommerce360.com/?p=1315212 Technology companies are gathering in Las Vegas this week for the annual Consumer Electronics Show (CES). Executives from these companies will discuss topics that are essential to ecommerce in 2024, including artificial intelligence (AI), cyber security, augmented reality (AR) and other retail technologies.  CES 2024 is put on by the Consumer Technology Association from Jan. […]

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Technology companies are gathering in Las Vegas this week for the annual Consumer Electronics Show (CES). Executives from these companies will discuss topics that are essential to ecommerce in 2024, including artificial intelligence (AI), cyber security, augmented reality (AR) and other retail technologies. 

CES 2024 is put on by the Consumer Technology Association from Jan. 9 through Jan. 12.

These are the key stories to take note of.

Walmart CEO’s keynote

Walmart CEO Doug McMillon will give the keynote speech on the first day of the technology conference. McMillon will  “share Walmart’s vision to design and build technology that will usher in the next generation of retail,” CES says of the speech. 

He is slated to discuss new ways Walmart will use technology in 2024 and beyond, both in stores and online. 

The talk will be watchable via livestream at 2 p.m. PST.

Walmart ranks No. 2 in the 2023 Digital Commerce 360 Top 1000, a ranking of North America’s leading retailers by online sales. It also ranks No. 9 among marketplaces by gross merchandise value.

Newegg’s TikTok Shop

Newegg is using CES to further test and grow its presence on TikTok Shop. The technology retailer will be part of a shopping event titled “TikTok Shop: Live from CES 2024.” A host from Newegg will share deals on retail products through TikTok’s ecommerce platform at 3:30 p.m. PST on Jan. 11.

The retailer was an early participant when TikTok launched ecommerce in the U.S. earlier this year. Newegg ranks No. 57 in the Top 1000.

Ecommerce customer loyalty

Another panel for Wednesday will cover the future of ecommerce, “focusing on the importance of authenticity, trust, and security in a world where these values are fleeting — and increasingly sought after,” according to a press release.

Speakers from Target, Microsoft, and Adobe will address how retailers can pursue relationships with customers that keep them coming back for the long term. They will also discuss retail media networks and how they impact both B2B and B2C commerce. The CEO of video commerce platform Firework will also discuss the implications of live shopping.

L’Oreal keynote

L’Oreal is the first beauty company to have a keynote speaker at CES this year with Nicolas Hieronimus. He will discuss how technology is transforming the business, which is now physical, digital and virtual. For example, Hieronimus will discuss ways L’Oreal is already using technology to better reach customers, like AI-powered mobile applications that provide skin care guidance and augmented reality makeup try-on capabilities. 

Instacart announces AI-powered advertisements

Instacart announced new technology capabilities on its smart carts at CES.

The grocery delivery company debuted ads on Caper Carts. Instacart describes them as AI-powered smart carts that will make personalized recommendations through advertisements. Recommendations will be based on the time of year, ongoing promotions, and other products already in the customer’s cart, Instacart says. For example, shoppers might receive advertisements for candy ahead of Valentine’s Day, or see an ad for ice cream if they purchase ice cream cones.

“We’re excited to introduce the next phase of this work with a new advertising solution that will further enable thousands of CPG brands to connect with high-intent customers with measurable results — in all the ways people choose to shop,” said Fidji Simo, CEO and Chair of Instacart, in a press release. The first carts with these ads will launch soon, Instacart says. The delivery company plans to have thousands of carts working by the end of the year.

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Online holiday spending beat expectations: Signifyd https://www.digitalcommerce360.com/2024/01/04/online-holiday-spending-beat-expectations-signifyd/ Thu, 04 Jan 2024 22:08:06 +0000 https://www.digitalcommerce360.com/?p=1315074 Retailers had a happy holiday season, according to new holiday spending data from Signifyd. The fraud prevention vendor says U.S. holiday sales increased 7% in 2023 over 2022. Signifyd classifies Oct. 1 through Dec. 31 as the holiday season. The security company previously predicted that sales would grow 5%. Signifyd provides fraud prevention services to […]

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Retailers had a happy holiday season, according to new holiday spending data from Signifyd. The fraud prevention vendor says U.S. holiday sales increased 7% in 2023 over 2022. Signifyd classifies Oct. 1 through Dec. 31 as the holiday season. The security company previously predicted that sales would grow 5%.

Signifyd provides fraud prevention services to web merchants. Its network includes 115 retailers in the 2023 Digital Commerce 360 Top 1000 ranking of North America’s leading online retailers. The vendor’s data comes from transactions across thousands of ecommerce websites and 600 million unique shoppers.

Average order value grew 3% year over year for the three-month holiday season, Signifyd found. Meanwhile, fraud attempts declined slightly, down 1%.

Online holiday spending habits

Online holiday shopping started early this year and continued strong through the end of the season, Signifyd found. That’s contrary to some predictions that early season sales would pull spending forward and December sales numbers would be modest. 

“Both we and our merchants were pleasantly surprised by the staying power of the consumer throughout what has typically been the peak holiday period,” Signifyd chief customer officer J. Bennett said in a statement. “This felt like a return to normalcy, with consumers waiting for better deals later in the season. When retailers ultimately offered those deals, consumers responded in a big way.” 

Spending resembled pre-COVID shopping patterns, peaking from mid-November to Dec. 20, Bennett said. 

Growth increased over the three months Signifyd counted as part of the holidays. October sales grew 4% year over year, November sales grew 8%, and December sales were up 11%, it found. That’s the opposite of the trajectory of Signifyd’s predictions of 7%, 5% and 3%, respectively.

Some of the December growth was due to late-season discounts, according to Siginifyd. 23% of all online sales in December used a discount code, a 14% increase from December 2022. 

Online sales by category

Online grocery sales recorded the largest year-over-year change in Q4, Signifyd found. They increased 24% over 2022 levels. Alcohol, tobacco and cannabis sales also showed a significant increase, up 19%. Leisure and outdoor sales grew 11% and electronics sales grew 9%. 

Signifyd also shared sales growth by category in December, the month with the largest year-over-year increase in online sales. Grocery again led growth, up 27% from online grocery sales in December 2022. Electronics were the next-highest category, growing 19% year over year. Leisure and outdoor and luxury sales grew 14% and 12%, respectively.

How do Signifyd’s results compare to other data?

Signifyd reported a larger increase in U.S. online holiday sales than Adobe Analytics. Adobe, however, measures a shorter holiday season encompassing November and December. It found that sales grew 4.9% year over year, based on 1 trillion visits to U.S. retail sites, 100 million SKUs and 18 categories. 

Signifyd’s findings aren’t far off from Adobe’s. Signifyd found that November online sales grew 8% year over year, while Adobe recorded a 6% increase.

Despite slightly different numbers, the technology companies noted many of the same categories driving growth. Signifyd names grocery as the top-growing category during its holiday period. Adobe found that grocery was the fourth-largest of its 18 categories, accounting for $19.1 billion in sales in November and December. Electronics sales also grew significantly in December, per Signifyd. Adobe found electronics were the largest single category over the holidays, responsible for $50.8 billion in sales.

Mastercard SpendingPulse reported a figure in the middle of Adobe’s and Signifyd’s. Online sales grew 6.3% between Nov. 1 and Dec. 24, the credit card company found.

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GrubMarket acquires another produce supplier https://www.digitalcommerce360.com/2023/12/29/grubmarket-acquires-another-produce-supplier/ Fri, 29 Dec 2023 16:59:15 +0000 https://www.digitalcommerce360.com/?p=1314863 Online grocery seller and software-as-a-service platform GrubMarket announced its acquisition of A&B Tropical Produce on Dec. 20. A&B Tropical Produce is based in Miami and provides Central and South American fruits and vegetables to the U.S. It specializes in plantains, yellow yams, yuca, avocados and dragon fruit from 11 countries in the region. The acquisition […]

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Online grocery seller and software-as-a-service platform GrubMarket announced its acquisition of A&B Tropical Produce on Dec. 20.

A&B Tropical Produce is based in Miami and provides Central and South American fruits and vegetables to the U.S. It specializes in plantains, yellow yams, yuca, avocados and dragon fruit from 11 countries in the region. The acquisition will allow GrubMarket to expand its East Coast presence and gain better standing in the food supply chain industry, it says. A&B currently sells 50 different commodities to 100 wholesale customers across North America, according to a statement. 

“A&B is also strategically located near key Florida ports at the crossroads of North and South America, which will enable GrubMarket to strengthen our position not only on the East Coast but also in the global food supply chain,” GrubMarket CEO Mike Xu said in a written statement. “We are thrilled to welcome the A&B team to the GrubMarket family.”

What is GrubMarket?

GrubMarket connects farmers with consumers for home delivery. It also sells food to grocery retailers and restaurants. Walmart, Costco and Whole Foods are among its customers. GrubMarket operates in all 50 U.S. states along with parts of Canada, South America, Asia and Africa.

In 2021, it reached $1 billion in annual revenue and became one of the largest suppliers of South American produce to the U.S.

Other GrubMarket acquisitions

A&B became the latest in a string of acquisitions by Grubmarket in 2023. In October, GrubMarket acquired another produce wholesale business based in Philadelphia, PA China Farm. The business specializes in produce from Asia including black cabbage, baby bok choy, napa cabbage, papaya and durian, GrubMarket said in a press release at the time. It also imports yogurt, tofu and other products from Spain, Morocco, Thailand and other countries. Xu called the acquisition a way to reinforce GrubMArket’s presence in the Northeast.

One month earlier, GrubMarket announced the acquisition of Mendez International, a wholesale distributor of produce to greater New York City grocery stores and supermarkets. Mendez International supplies those retailers with avocados, limes, mangos and other produce from Costa Rica, Ecuador, the Dominican Republic and Jamaica. 

Grubmarket made more than a dozen acquisitions in 2022, and more than 60 in the last four years, CNBC reported. It raised $499 million in funding since it was founded in 2014, according to Crunchbase.

Additions to GrubMarket’s portfolio of distributors also gain access to the firm’s SaaS platform, with online ordering features and shipping and logistics management technology.

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