The Dynamic Grocery Market

A Market Research Report

The grocery market is continuously evolving as the traditional grocer competes against more and different types of retailers, changing consumer preferences and technology investments for efficiency improvements.

Coresight, a retail and technology research firm, estimates total US grocery retail sales to increase 5.6% to $1.5 trillion this year, down from a 9.2% increase to $1.42 trillion in 2022. Easing inflationary pressures on food and beverage prices is part of the lower rise in expected sales this year and is expected to continue this year. Indeed, according to the US Census Bureau, grocery stores’ retail sales are up 3.5% year-to-date through July.

While the overall growth rate remains strong, the traditional grocer’s sales share declined from 69.7% in 2017 to 66.6% in 2022. Grocery share rose from 18.4% to 19% for mass merchants and from 3.1% to 3.4% for dollar/discount stores, Coresight reported. In addition, warehouse clubs’ grocery percentage increased from 8.7% to 10.9% during the same period.

Several factors are contributing to this shift, according to Coresight. 

“Mass merchandisers and warehouse clubs typically offer goods at lower prices than conventional supermarkets, making them more attractive to value-oriented shoppers. Additionally, they offer a comprehensive product selection - including grocery, clothing, electronics, and home offerings—creating one stop shops that appeal to consumers who want to save time and money by consolidating their shopping trips.”

A brief overview of what is in the report:

• Shifts to Online
• Importance of Fast and Accurate Fulfillment
• Technology Investments
• Speed Matters

Download the Report to see the current grocery market in numbers as well as solutions to help last mile delivery strategies.