How 7 Key Trends in 2024 Drove a 4% Uptick in Digital Grocery Sales

Digital grocery sales witnessed a 4.2% increase in 2024 compared to 2023, with Grocery Doppio projecting an even stronger rise of 9.7% in 2025. With 37% of grocers optimistic about improved digital business in 2025, the digital grocery sector is primed for sustained growth.This growth has been fueled by strategic promotions, technological innovation, operational efficiencies and a shift in price-conscious consumer behavior, at the forefront.

Shoppers have become more selective, prioritizing deals, promotions, and price reductions. Retail media networks, fulfillment speed, and same-day delivery have also played a crucial role. Major players like Walmart, Amazon, Target, and Kroger have leveraged these drivers to boost digital sales, reflecting the shift toward faster, cheaper, and more personalized grocery shopping experiences. Here are the top 5 trends that shaped digital grocery sales in 2024.

Promotions and Discounts Shape Shopper Decisions

Promotions, deals, and discounts were the biggest drivers of digital grocery sales in 2024. With 93% of shoppers identifying price as a critical factor in their purchasing decisions, grocers focused on offering attractive deals and promotional offers. 57% of shoppers stated they were willing to switch grocers for better prices. In response, 59% of grocers extended their discounts until the end of the year to capture price-sensitive customers.

Digital coupons played a major role in driving growth, with 59% of shoppers indicating plans to increase their usage. This shift led to higher online engagement, as shoppers sought better prices online compared to in-store.

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Target, for instance, added over 10 million new transactions in Q3 2024 through price reductions on 10,000+ items and plans to cut prices on an additional 2,000 items during the holiday season.

Why It Matters

• Deals increase shopper loyalty and improve customer lifetime value.
• Discounts drive traffic to digital platforms, ensuring higher digital engagement.
• Grocers that fail to offer competitive pricing risk customer churn.

Grocer's Takeaway‍

Grocers should view promotions as a strategic lever to capture price-sensitive customers and boost digital sales.

Digital Coupons as a Strategic Driver of Digital Sales

Digital coupons have become a must-have tool for grocers looking to increase shopper engagement and boost basket sizes. According to Grocery Doppio's H1 2024 Digital Summary, 82% of grocers identified digital coupons as a key influence on both digitally influenced and digital sales. With 59% of shoppers planning to increase their use of digital coupons, the demand for this savings tool is higher than ever. The convenience of accessing coupons through mobile apps and online platforms has made them an essential part of the online shopping experience.

Grocers are leveraging digital coupons not only to boost engagement but also to increase customer retention and order frequency. Retailers like Target, Kroger, and Walmart have capitalized on this opportunity by integrating digital coupons into their loyalty programs and mobile apps. Personalized digital coupons encourage repeat visits, drive larger basket sizes, and enhance customer loyalty.

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Target Circle offers members access to exclusive digital coupons, boosting loyalty and increasing customer engagement. This strategy has led to larger basket sizes and higher order frequency.

Why It Matters

• Shoppers actively seek digital coupons to lower their online order costs, increasing basket sizes and purchase frequency.

Grocer'sTakeaway‍

Investing in digital coupon capabilities is essential for grocers aiming to drive digital engagement, boost basket sizes, and increase customer lifetime value.

Omnichannel Shopping Takes Center Stage

Omnichannel shopping is no longer a “nice-to-have”, it is a strategic necessity for grocers in 2024.The ability to serve customers in-store, online, and via curbside pickup simultaneously is driving engagement, increasing customer loyalty, and leading to larger basket sizes.

Data-Driven Insights

Omnichannel Shoppers Spend More: According to Grocery Doppio, omnichannel shoppers spend an average of $1,043 per month, far exceeding the average spend of $839 for in-store-only shoppers and $857 for digital-only shoppers.

Higher Loyalty: Omnichannel shoppers are 3x more loyal than digital-only customers, as they engage across multiple touchpoints, reinforcing brand connections.

Bigger Basket Sizes: By leveraging the flexibility of online, curbside, and in-store options, omnichannel buyers have higher basket sizes due to the ease of adding last-minute items during curbside pickup or store visits.

Major retailers like Walmart, Target, and Kroger have embraced omnichannel models, using store-fulfilled delivery and curbside pickup to offer customers more flexibility and convenience.

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• Walmart's store-fulfilled delivery strategy has contributed to a $2.5 billion monthly run rate. By offering curbside pickup, paid expedited delivery, and same-day fulfillment, Walmart has seen its Q3 2024 e-commerce growth surge by 22%, reflecting consumer demand for speed and flexibility.
• Over 40 million customers used Amazon's free same-day delivery in Q3 2024, a 25% increase year-over-year, showcasing the growing role of fast fulfillment in driving omnichannel adoption.

Why It Matters

1. Omnichannel shoppers spend more, increasing basket sizes and order frequency.
2. Store-fulfilled models reduce shipping times, cut costs, and enhance customer experience.

Grocer's Takeaway

‍Grocers that enable omnichannel shopping experiences are better positioned to capture higher-spending, high-loyalty customers who engage across multiple platforms.

Health-Conscious Shoppers Drive Growth in Healthy Foods

The demand for healthier food options surged in 2024, with shoppers becoming more mindful of the products they consume. 67% of shoppers indicated a desire to purchase healthier foods, and 23% wanted to increase their purchases of organic items. Additionally, 64% of shoppers said they planned to increase the frequency of family meals at home, driving demand for fresh, nutritious ingredients.

This shift prompted grocers to expand their offerings of healthier and organic products, leveraging data-driven personalization to target health-conscious consumers. Retailers like Amazon and Target have embraced this trend, offering healthier products through personalized recommendations. Grocery Doppio data reveals that grocers are focusing on healthy alternatives to boost basket sizes and cater to changing consumer needs.

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Target Circle leverages health-related consumer insights to create targeted marketing campaigns that promote healthy and organic product offerings.

Why It Matters

• Shoppers are willing to pay more for healthy products, increasing basket sizes.
• Healthy products drive customer engagement and brand loyalty, especially with the rise in GLP-1 medications.
• Grocers that cater to health-focused shoppers can differentiate themselves from competitors.

Grocer's Takeaway

Grocers that enable omnichannel shopping experiences are better positioned to capture higher-spending, high-loyalty customers who engage across multiple platforms.

Retail Media Networks Emerge as a Major Revenue Driver

Retail media networks have become one of the most significant growth drivers in 2024, with the grocery sector's retail media market projected to reach $8.5 billion by the end of the year. By offering advertisers access to shopper data, grocers have successfully converted their e-commerce platforms into profitable revenue streams. Retail media advertising now influences 17% of shopper decisions, as per Grocery Doppio's insights. This model allows grocers to attract CPG shopper marketing spend, as brands are drawn to platforms where they can engage directly with customers. Additionally, retail media enables grocers to build a competitive moat, reducing reliance on third-party platforms and strengthening partnerships with CPG brands. This strategic shift not only increases profitability but also solidifies grocers' control over the end-to-end customer journey.

Grocers like Walmart and Target have led this transformation by leveraging their customer loyalty platforms. Retail media also plays a pivotal role in the personalization of shopper experiences, offering customers ads and promotions that are relevant to their shopping habits.

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• Walmart's retail media network enables brand partners to showcase products to millions of Walmart shoppers, creating a revenue stream for the retailer and improving shopper engagement.
• Target Circle, with over 100 million members, provides a wealth of consumer data that fuels targeted advertising through Target’s Roundel ad business, which saw double-digit growth in Q2.

Why It Matters:

• Retail media offers grocers new revenue streams while reducing reliance on core grocery margins.
• Targeted advertising boosts sales volume, directly influencing purchase behaviour, driving higher conversion rates and increasing sales.
• In-store Retail media Improves Shopper Engagement by personalized promotions where 38% of grocers reported improved engagement.

Grocer's Takeaway

‍Retail media networks present a lucrative opportunity for grocers to diversify their revenue streams beyond traditional grocery margins. By leveraging shopper data for targeted advertising, grocers can offer personalized shopping experiences, boost customer engagement, and increase conversion rates.

Personalized Offers and Inventory Visibility Build Shopper Loyalty

Personalization has become a cornerstone of grocery e-commerce. 93% of shoppers prefer personalized promotions for products they want to buy, while 72% of grocers reported improved inventory performance in Q1 2024 compared to Q1 2023. Grocers are now using AI-driven tools to enhance personalization, deliver relevant offers, and ensure accurate inventory availability.

With better visibility into inventory, grocers have been able to reduce substitutions by 1.7%. As a result, customer satisfaction has increased. Retailers like Target, Kroger, and Walmart use personalized promotions to increase customer engagement. 

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Target Circle, for example, sends personalized offers to its 100 million+ members, increasing basket sizes and driving repeat purchases.

Why It Matters

• Personalization builds shopper loyalty by providing customized experiences that increase basket sizes.
• Grocers reduce the operational cost of substitutions and increase shopper satisfaction.
• Real-time inventory visibility improves the overall customer experience.

Grocer's Takeaway‍

Personalization can drive higher conversion rates and larger basket sizes. By personalizing promotions and product recommendations, grocers can increase engagement and customer satisfaction.

AI: The Next Big Game-Changer in Grocery Operations

AI is redefining grocery operations, unlocking an estimated $135 billion in business value by 2030. From supply chain optimization to customer service enhancement, AI-driven innovations are transforming key areas of grocery retail. According to Grocery Doppio, 71% of grocery C-suite executives believe AI is essential for achieving operational efficiency.

Where AI is Delivering Value:

Supply Chain & Logistics: $67.7 billion in value through AI-enabled inventory management, automation, and optimized logistics.

Merchandising: $25.7 billion impact by leveraging AI for assortment planning, dynamic pricing, and predictive demand forecasting.

Marketing: $19.3 billion in value from AI-powered personalization, content creation, and targeted advertising.

Store Operations: $15.8 billion in value via AI-driven process automation, labor optimization, and enhanced in-store experience.

Customer Service: $2.5 billion in value, as AI chatbots and virtual assistants enhance customer interactions.

IT/Technology: $2.3 billion in savings from AI-driven process automation, system optimization, and technology support.

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• Walmart has taken AI innovation to the next level with its proprietary Wallaby Large Language Models (LLMs), trained on decades of internal data. These models power highly contextualized product recommendations, personalized customer support interactions, and improved product discovery. 
• Walmart’s AI-driven search engine analyzes customer intent, going beyond keyword searches to deliver personalized product groupings. Shoppers can describe their needs in broad terms, and Walmart's AI will generate relevant product lists, enhancing the shopping experience.
• Kroger uses AI-driven personalization to offer tailored product recommendations, personalized offers, and custom shopping lists through its app and website. This approach increases basket sizes and encourages repeat purchases by predicting customer preferences and recommending relevant products.

Why It Matters

• Shoppers prefer intuitive search engines that understand broader queries, enhancing their online shopping experience.

Grocer's Takeaway

Grocers that fail to adopt AI risk being left behind as Walmart, Kroger, and Amazon set new standards for personalized search, product discovery, and operational excellence.

Conclusion

Digital grocery sales increased by 4% in 2024, driven by a mix of deals, promotions, and personalization. The push toward faster fulfillment and same-day delivery also played a pivotal role, with major players like Walmart, Target, and Amazon leading the charge. As grocery e-commerce continues to evolve, personalization, retail media, and omnichannel experiences are becoming essential tools to engage price-conscious consumers.

To explore these trends in greater depth, don't miss the "State of Digital 2024: A Recap of Digital Grocery Spends and Trends" webinar, where industry leaders and experts will discuss the key drivers of digital grocery growth and the emerging opportunities for 2025.