Who Are the Largest Online Grocery Retailers?

As of November 2017, six of the ten largest online grocery retailers experienced sales growth in double digits. According to Edge by Ascential, online grocery sales include items typically sold at supermarkets, purchases made via a retailer’s website, app or third-party service. Walmart and Amazon saw sales growth of double digits, too. So, who are the largest online grocery retailers? And why should you choose them?

Instacart

Instacart is one of the largest and most popular grocery delivery services in the country, with over 25,000 stores in its service area. It provides personal shopper service, and its grocery delivery service works with various supermarket chains including Wegman’s, Whole Foods, Stop & Shop, CVS, and even Petco. Instacart delivers for a fee, unless you’ve signed up for

Instacart Express.

Instacart has had a wild year, raising $265 million at a valuation of $39 billion. Its business model has evolved from a niche service to an industry necessity, with 85% of US households now able to order groceries from their favorite online grocery stores. Its growth in e-commerce has given it the ability to leverage its physical stores for inventory and personal shopper services.

Walmart

Although Amazon may be the king of the mountain when it comes to online grocery sales, Walmart has been crushing Amazon in recent quarters. Walmart’s grocery business has been one of its strongest areas in recent quarters, with sales up by 14%. This has contributed to the company’s growth in recent years, and its food business is poised to continue expanding. In this article, we’ll explore Walmart’s recent omnichannel strategy and why it’s making such a big play in the industry.

With pickup services available in nearly every U.S. state, Walmart is the undisputed king of the U.S. online grocery market. As of June 2018, Walmart had 62% more customers than its nearest competitor. The next closest competitor isn’t Amazon, but Instacart, which operates across the U.S., while Amazon has its own delivery service, Prime Now. Other online grocery retailers include Peapod, FreshDirect, and AmazonFresh.

Amazon

Walmart has taken the lead in online grocery sales, but Amazon is disputing this study. As of August 2017, Amazon’s online grocery business grew by nearly two-fold. Sales have tripled since the first quarter, and it is now the fastest-growing business category online. Amazon has become the number one choice for consumers who want to shop without having to leave their home. But how do you judge whether Amazon is truly taking the grocery market by storm?

The company’s recent acquisitions have made its strategy for the grocery market much more complex than it had previously been. Whole Foods was acquired for $13.7 billion, more than twice the cost of Amazon’s previous deals. Despite the hefty price tag, Whole Foods isn’t losing too many customers to Amazon. Instead, it’s gaining a loyal clientele and a huge market share.

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