“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.”
Formats like mass and hard discount experienced strong expansion in their respective MAU bases while supermarket format experienced a contraction. The average number of MAUs increased by 15 percent for mass and 12 percent for hard discount versus 2022, while the supermarket MAU base shrank by 4 percent. Cross-shopping rates between grocery and mass formats continued to increase in 2023.
"As Walmart grabs market share through its price leadership and omnichannel strategies, regional grocers find themselves in a precarious position. To remain competitive, they must intensify their efforts in improving customer engagement, offering tailored personalization and building loyalty. This strategic shift is not just about weathering the storm of price inflation and intense competition, but about thriving in it," said Mark Fairhurst, global chief growth officer at Mercatus. "By providing a shopping experience that is both seamless and highly personalized, grocery retailers can retain their existing customer base and gradually attract a wider audience."
