As Walmart and Amazon continued their battle for supremacy in online grocery, other companies have muscled their way to a larger share of the category. Smaller firms like FreshDirect and NetGrocer now account for more than 16% of the grocery e-commerce market, more than double the portion they commanded just a year ago. On the other hand, these secondary players have relatively low levels of repeat customers, suggesting that they may not be able to sustain their momentum, according to TABS Analytics.
The study found that retailers are having a hard time convincing shoppers to increase their use of online platforms. Just 29% of shoppers said they make online grocery purchases regularly — which the study defined as at least six times per year — compared with 35% last year.
In-store purchases at traditional grocery stores continue to dominate people’s shopping habits, with 76% of the shoppers TABS surveyed indicating they visit these merchants on a regular basis, down from 80% in 2019. Value-focused retailers like Aldi raised their share from 23% to 30%.