Dive Brief:
- Loyalty memberships may be the key for small and mid-sized grocery players to win back Walmart e-grocery shoppers, according to the Brick Meets Click April 2025 report sponsored by Mercatus.
- Around two-thirds of households ordering groceries online from Walmart last month were Walmart+ members, according to Brick Meets Click Partner David Bishop
- Walmart+ has not only garnered more repeat shoppers for the mass retailer, but also seen its members spend more on online orders than non-members by over 40%.
Dive Insight:
As grocery e-commerce keeps steadily growing, Walmart continues to reap the benefits over traditional grocers — and it has its Walmart+ program to thank for that.
Walmart+ members are nearly 10% more likely to “express intent” to reuse e-commerce services compared to Walmart customers who aren’t members, per Brick Meets Click’s findings.
“Historically, membership and subscriptions were considered more effective at building loyalty with regular customers, however, today we see that these programs are also attracting shoppers from rivals as households search for more savings,” Bishop added. The report noted that loyalty memberships also boost repeat customers month-to-month.
Mass retailers continue to threaten conventional grocers with their online services. Over the past two years, mass retailers’ household penetration grew from 46% to 50% while order frequency has “increased steadily,” according to Brick Meets Click.
Grocery e-commerce recorded its ninth consecutive month of sales in April, totaling $9.8 billion, a 15.2% increase compared to this period last year. Delivery led the growth, posting a 29% year-over-year increase to $4.2 billion in sales and contributing nearly three-quarters of the sales lift for the month, according to the press release. Ship-to-home also saw some growth, accumulating $1.9 billion in sales, an increase of just over 22%.
Meanwhile, pickup sales remained flat at $3.7 billion as shoppers continue opting for delivery and the promotions companies offer in that channel, per Brick Meets Click.
“Discounted memberships have put Delivery in the spotlight, but lasting loyalty forms where speed, control, and value meet,” Mark Fairhurst, chief growth marketing officer for Mercatus, said in a statement. “Regional grocers who combine fast, free Pickup with a compelling subscription program, data-driven rewards, and timely outreach to lapsed shoppers can turn trial orders into repeat business while protecting margins.
