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Industry NewsGrocers prepare for omnichannel holiday season as digital regains lost momentum

Grocers prepare for omnichannel holiday season as digital regains lost momentum

Incisiv and Wynshop have released the findings from their “State of Digital Grocery Performance Scorecard for October 2023.” The report foretells a holiday grocery shopping season that will be more omnichannel than ever before, with 83 per cent of shoppers planning to use grocers’ online stores and apps, 78 per cent of shoppers reporting that they will buy both in-store and digitally for the upcoming holiday season, and 21 per cent planning to buy the majority of their holiday groceries online.

Meanwhile, here is how grocers are investing in preparedness for an omnichannel holiday season:

  • online stress testing/optimization (86 per cent)
  • increasing digital promotions and discounts (77 per cent)
  • expanding delivery and pickup options (74 per cent)
  • Improving inventory visibility options (69 per cent)
  • Personalized offers (47 per cent)
  • The monthly State of Digital Grocery Performance Scorecards are one of many resources available on the Grocery Doppio website. The latest report was built around data analysis of 2.1 million shopper orders and aggregated survey results from more than 38,113 shoppers and 3,611 U.S. grocery executives.

More key findings from the October 2023 Performance Scorecard include:

  • Pickup has emerged as the fulfillment channel of choice
  • 3 per cent of all digital grocery orders were fulfilled by pickup in October 2023, representing an 8.2 per cent increase over September pickup orders.
  • 62 per cent of shoppers intend to do even more pickup orders over the holidays than they normally do.
  • Digital grocery sales regained momentum, while third-party sales continued to slump
  • October digital grocery sales were $11 billion in October, representing 13.2 per cent of total grocery sales; This was a 6.8 per cent increase over September, and the highest level in six months that digital grocery has achieved.
  • Third party platform market share dropped to 15.6 per cent, the second time below 16 per cent in 2023, and the lowest level of market share in the past 48 months.

“It’s beginning to look a lot like an omnichannel Christmas,” said Gaurav Pant, chief insights officer of both Incisiv and Grocery Doppio. “As cold weather sets in, shoppers struggle with busy schedules, and grocers extend digital promotions and convenient fulfillment options, shoppers will utilize all the channels at their disposal.”

“This year grocers are more prepared than ever for digital grocery,” added Charlie Kaplan, chief revenue officer at Wynshop. “Industry leaders are using digital technology to amp up online traffic and ensure that they have the inventory transparency and fulfillment efficiency to maintain happy holiday customers.”

Grocery Doppio is a free, U.S.-based independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth. The monthly State of Digital Grocery Performance Scorecards are one of many resources available on the Grocery Doppio website, along with rich, research-driven grocery content, fact-based observations, inspiring perspectives, and deep performance benchmarks that identify improvement opportunities for grocery retailers.

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