Brick Meets Click and Mercatus define the three receiving methods for online grocery sales as:

• Delivery: Includes orders received from a first- or third-party provider like Instacart, Shipt or the retailer’s own employees.
• Pickup: Includes orders received by customers either inside or outside a store or at a designated location/locker.
• Ship-to-home: Includes orders that are received via common or contract carriers like FedEx, UPS, USPS, etc.

Pickup, the largest segment by sales, remained flat year over year, but delivery and ship-to-home both grew.

“Delivery’s strong performance in June likely benefited from the promotional offers made last month, first by Instacart and then by Walmart,” said David Bishop, partner at Brick Meets Click, in a statement. “These promotions focused on delivery and offered deep discounts on each service’s annual membership fees, which helped boost both MAUs [monthly average users] and order frequency for delivery and for Walmart.”

June 2024 data was based on a survey of 1,744 adults in the United States and a similar survey in June 2023 of 1,769 adults, Brick Meets Click said.

June online grocery sales

Online grocery sales in June 2024 grew compared to June 2023. They also grew compared to May 2024, which saw a year-over-year decline.

June online grocery sales hit $7.7 billion, according to Brick Meets Click and Mercatus. That’s an 8.0% increase from $7.1 billion in June 2023.

Online grocery delivery sales grew to $2.9 billion in June 2024. That’s up 18% from $2.5 billion in the prior-year period.

Similarly, ship-to-home sales grew to $1.3 billion in June 2024. That’s a nearly 10% increase from $1.2 billion in June 2023. That marked the fourth straight month of year-over-year sales gains for the segment. Brick Meets Click and Mercatus attributed that growth to an increase in average order value (AOV) despite a 1% reduction in MAUs and a decline in order frequency.

Impact of Mass Merchants on monthly online grocery sales

The overall online grocery MAU base grew nearly 4% year over year in June, driven almost entirely by reactivating lapsed users, Brick Meets Click and Mercatus said. The increase in customers in June 2024 is largely due to less-frequent users making another order or lapsed customers who are giving the service another chance, they said.

Nearly a third of customers bought online from both grocery stores and Mass Merchants — such as Walmart, Target or Costco — Brick Meets Click and Mercatus data showed. In June, 31.6% of online grocery store shoppers also received an online grocery order from a Mass Merchant. More specifically, the share of online grocery store shoppers who also ordered groceries online from Walmart reached 22%.

Walmart, Target and Costco each rank in the top 10 within Digital Commerce 360’s Top 1000 Database. The database ranks North America’s leading online retailers by their web sales.

In terms of where surveyed households report buying most of their groceries, whether in-store or online, Mass Merchants expanded their share to 42% in June 2024. Meanwhile, supermarket operators’ share dipped to 39%.

“Regional grocers need to stem the tide and regain market share by leveling the playing field against Mass Merchants, despite these rivals having a price advantage,” said Mark Fairhurst, chief growth officer at Mercatus, in a statement. “Integrating personalized and targeted promotions into their first-party platform experience will be key to re-engaging lapsed customers and improving repeat purchase rates. Additionally, incorporating high-level, in-store customer service into the digital experience — a strength that regionals are known for — will be crucial and can give them an advantage over their mass [merchant] competitors.”

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CEO Rodney McMullen said in an earnings call with investors that Kroger expects customer sentiment “to continue improving” as inflation moderates. But for now, many are “managing economic uncertainty.”

“As we’ve seen over recent quarters, customers continue to seek value and are shopping with us differently based on their financial situations,” McMullen said. “Spending from premium and mainstream customers continue to be strong.”

He added that Kroger is starting to see positive signs among its “most budget-conscious households.”

Kroger has moved up to No. 6 in the Top 1000, Digital Commerce 360’s database ranking the largest online retailers in North America. Kroger is first in the Top 1000’s Food/Beverage category. However, it competes with Mass Merchants that rank higher than it in the Top 1000 — Walmart and Target — for online grocery sales.

Kroger digital sales

In Q1, Kroger said, it accelerated its digital presence by increasing delivery sales 17% year over year. It also increased digitally engaged households 9% year over year.

Kroger digital sales increased more than 8% in Q1, said Todd Foley, interim chief financial officer, in the earnings call. For total Kroger sales, which increased to $45.3 billion in Q1, gross margin was 22.4% of sales. Whereas total sales increased slightly from $45.2 billion in the previous year’s Q1, gross margin decreased slightly (down seven basis points), he said.

McMullen said delivery and pickup both grew in the quarter. Kroger’s delivery team has improved fill rates, he said. That refers to the number of orders Kroger can ship from its available stock. It also reduced wait times and improved on how many of its orders were delivered without error, he added.

“Through the power of machine learning and AI, we are developing new ways to elevate the pickup experience for customers and at the same time reduce costs,” McMullen said. “With dynamic batching of orders, these tools are providing associates the most effective pick routes, which is enabling us to dramatically reduce pick lead time in our highest volume stores.”

Additionally, he said customers love Kroger’s delivery experience for refrigerated products. The Kroger delivery network has nearly doubled sales year over year in Q1, he said.

Personalization and retail media at Kroger

Personalization has helped Kroger engage with more digital customers, McMullen said. As a result, Kroger customers clipped 18% more digital coupons than they did in the year-ago quarter.

“Capturing more digital households is a key to our long-term growth model as these households are more loyal, spend nearly three times as much with us and drive our alternative profit businesses,” McMullen said.

Meanwhile, McMullen said Kroger Precision Marketing, the company’s retail media network, is on pace to meet full-year expectations of more than 20% growth. Kroger Precision Marketing added new capabilities with Meta on June 19, he said. It continues to “broaden its reach by offering its custom audiences and ad measurement capabilities to advertisers on the Meta social media platforms.”

McMullen said this will create more opportunities for clients to reach relevant audiences in more places.

Possible Kroger merger with Albertsons

McMullen told investors that Kroger believes its updated divestiture plan meets regulators’ concerns and will put the company in a better position to complete its merger with Albertsons.

Kroger and Albertsons announced in April a plan to sell grocery stores to C&S Wholesale Grocers. This came in response to a statement the Federal Trade Commission had released in late February calling the proposed Kroger-Albertsons merger “anticompetitive” and suing to block the $24.6 billion acquisition.

McMullen said the proposed divestiture “positions C&S to be a strong and successful competitor.”

Albertsons ranks No. 24 in the Top 1000. C&S currently does not rank in the Top 1000.

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The drop resulted from fewer pickup sales — which include in-store, curbside, from lockers and drive-up — in May 2024 than in 2023. Pickup sales were also fewer than in April 2024 (and 2023, for that matter). May 2024 data was based on a survey of 1,724 adults in the United States, Brick Meets Click said.

Moreover, pickup sales dropped despite a 3% increase in overall monthly active users (MAUs), according to Brick Meets Click. The analytics firm attributed this to growth in MAUs to lapsed users buying online again in May.

“What pulled down monthly sales results was a 6% decline in order frequency combined with a slight decline in AOV,” Brick Meets Click said in a statement.

Brick Meets Click and Mercatus define the three receiving methods for online grocery sales as:

• Delivery: Includes orders received from a first- or third-party provider like Instacart, Shipt or the retailer’s own employees.
• Pickup: Includes orders received by customers either inside or outside a store or at a designated location/locker.
• Ship-to-home: Includes orders that are received via common or contract carriers like FedEx, UPS, USPS, etc.

What impacted May online grocery sales?

Online grocery sales in May fell slightly, to $6.8 billion in 2024 from $6.9 billion in 2023.

“Customers appreciate the convenience of online grocery shopping, but they are increasingly looking for ways to save money as inflation has taken a toll on the household wallet,” said Mark Fairhurst, chief growth officer at Mercatus, in a statement. “While digital deals are a good start, it’s crucial to focus on more targeted, personalized, contextual offers based on past purchases, shopper profiles, preferences, or search behavior to better engage and retain customers.”

The largest receiving method, pickup, accounted for fewer online sales this May: $3.3 billion. That’s a 3.9% drop from $3.5 billion in May 2023.

The next-largest method, delivery, drew in the same amount of sales in May 2024 and 2023: $2.2 billion. The only method to generate an increase in sales was ship-to-home. It brought in $1.3 billion in May 2024, compared to $1.2 billion in 2023. That’s 9% growth.

“During May, Delivery benefited from deep discounts related to annual memberships offered first by Instacart (80% off) and later in the month by Walmart (50% off),” said David Bishop, partner at Brick Meets Click, in the statement. “These promotions likely drove Delivery’s strong jump in MAUs and show how players like Instacart and Walmart are attempting to keep active customers engaged by getting them to commit to 12 months instead of just one.”

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The retailer’s ecommerce penetration grew across all markets, CEO Doug McMillon said. That was partially due to growth among high-income customers, who turned to Walmart for convenience in the quarter.

Consolidated revenue grew 6.0% to $161.5 billion in Q1. Meanwhile, consolidated net income rose 179.9% to $5.31 billion.

Walmart is No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s online retailers by web sales. It is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of top such marketplaces by third-party gross merchandise value (GMV).

How much did Walmart make in Q1 online sales?

Ecommerce remained a source of high growth for Walmart in Q1 2025. The 22% year-over-year growth in the U.S. came on top of a 27% increase in Q1 of fiscal 2024.

Walmart said its pickup and delivery service was once again a significant driver of that ecommerce growth.

“It’s great to be in a position where our pickup business is growing and then, as we mentioned, our delivery business has now exceeded our pickup business in size and the run rate remains strong,” Walmart U.S. CEO John Furner told investors on May 16.

The mass merchant’s growing online business also represents an opportunity with more room to expand.

“While Walmart’s online business is still dominated by grocery — which is a key strength compared to Amazon — it is now gaining ground in categories like home and sporting goods, which underlines the fact it is becoming more of a destination for non-grocery shopping,” said Neil Saunders, managing director of retail analysis firm GlobalData. “In our view, Walmart has significant runway to expand this part of its business, especially as memberships of its Walmart+ program continue to increase.”

Meanwhile, Walmart’s ecommerce losses are decreasing.

“Ecommerce losses continue to narrow, most notably in the U.S. net delivery cost per order, improving nearly 40%,” chief financial officer John David Rainey said.

Sam’s Club and other Walmart online sales results

Sam’s Club, Walmart’s membership-based warehouse chain, reported ecommerce sales grew 18% in the quarter. Like Walmart, that growth was attributed to pickup and delivery sales. 

Sam Club’s net sales, meanwhile, grew 4.6% due to increases in transactions and unit volumes. Membership income grew 13%, thanks to “record total membership and Plus penetration at quarter end,” the retailer said.

“Walmart Plus continued to grow double-digits as members engage with us more frequently and spend more than other customers,” Rainey added.

54% of Sam’s Club members are also Walmart Plus members, the retailer said. One-third of Sam’s Club members are also using Walmart’s Scan and Go technology.

Walmart’s third-party online marketplace also grew significantly in the quarter, it said. Sales in the furniture, sporting goods, children’s apparel and home goods categories each grew more than 20%. Furner noted that all apparel categories are strong on the marketplace.

In the U.S., Walmart’s marketplace grew its seller count by 36% during the quarter. 28% of sellers also use Walmart’s fulfillment service, it said.

“We’ve picked up momentum in the marketplace,” Furner said. “Really, really pleased to see a number — a really large number — of new sellers come on board, and assortment’s well north of $400 million.”

Walmart Connect keeps growing

The company’s advertising arm grew 24% year over year, led by 26% growth from U.S. advertising side, Walmart Connect. U.S. ad sales from marketplace sellers grew more than 50%, it said. Overall advertiser count also grew nearly 19%. Sam’s Club’s ad business also grew, with a 30% increase in active advertisers.

In April, Walmart shared plans for growing Walmart Connect following its proposal to acquire Vizio. Walmart detailed plans to create more advertising options, expand them beyond Walmart.com, give advertisers better targeting and measuring abilities, and give them more creative tools.

Walmart appeals to higher-income consumers

The retailer attributed much of its growth in Q1 to higher-income consumers in the U.S.

Walmart breaks its customers into three tiers based on income, Rainey said:

• Below $50,000
• $50,000 to $100,000
• Above $100,000

Typically, about one-third of customers fall into each category. However, an emphasis on convenience rather than strictly value has brought in more customers from that high-earning tier, he explained. In addition, Rainey attributed growth in delivery among that cohort to their preference for convenience.

“Convenience matters to someone irrespective of what your payback is, irrespective of what your income level is,” Rainey said. “And we expect that to be durable. We don’t expect that to change.”

Walmart also invested in improving food quality to appeal to that customer segment, Furner said. He pointed to higher quality in the fruit and meat departments. 

Walmart layoffs

Ahead of reporting financial results, Walmart announced it would cut hundreds of corporate jobs and ask remote workers to move to one of three offices. Workers at Dallas, Atlanta, and Toronto locations were also asked to relocate. Most workers will move to Walmart’s Bentonville, Arkansas headquarters, while some will go to the San Francisco Bay Area or Hoboken, New Jersey.

“Earlier this week, we also shared decisions to eliminate some home office roles and reduce the amount of remote work,” McMillon told investors. “The vast majority of our home office associates have been back together in offices since we came back from the pandemic, and we want to see even more of that. Being in person is important.”

Walmart earnings

For its fiscal first quarter ended Apr. 30, Walmart reported:

• Consolidated revenue grew 6.0% to $161.5 billion.
• Walmart online sales in the U.S. grew 22% in Q1 FY25.
• Consolidated net income grew 179.9% to 5.31 billion.

Check back for more earnings reports. See Walmart’s previous earnings release story here.

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In the 2024 Omnichannel Report from Digital Commerce 360, we began by tracking how the past few years have changed retail. However, we also saw signs of normalization starting to materialize. This could be seen as rates of retailers offering some omnichannel options plateaued. Elsewhere, spikes in some offerings began to recede.

What is important in retail omnichannel strategy?

This year’s report underscores how vital buy online, pick up in store (BOPIS) options (78.3% adoption rate) and in-store stock statuses (65.4%) have become for many retailers in the Top 1000. At the same time, curbside pickup is now offered by a dramatically reduced share (25.3%) of Top 1000 merchants than it was in each of the past three years.

The report digs into the numbers from Digital Commerce 360’s own data and research. Our reporting and analysis track what the most successful online retailers in North America are doing. In addition, it layers on reporting and insights from leaders such as Kroger, Lowe’s, Walmart and others. These insights show what is working and how those companies are innovating.  

After that, we turn to more than 1,000 omnichannel shoppers. You’ll find their perspectives in fresh survey results from Digital Commerce 360 and Bizrate Insights. There, consumers explain which omnichannel options make a difference for them. They also tell us what has convinced them to complete orders.

Retail omnichannel trends

Here are three major success stories we found in 2024:

1. Buy online, pickup in store (BOPIS) and in-stock store statuses are both still being offered at levels higher than we saw in 2020.
2. Curbside pickup, even as it declines among other categories, is still a big priority for major retail chains in the grocery space, as well as office supplies merchants.
3. Shoppable video is becoming more common on social and streaming platforms with implications for the largest online retailers and their retail media networks.

Altogether, this report’s data-driven assessment presents a landscape that has moved seismically over nearly half a decade. Though retailers were forced to adapt, the lessons they learned during the COVID-19 pandemic are still informing choices. As a result, a new era is emerging.

What else is in this year’s report?

The 2024 Omnichannel Report includes all of the following:  

• The latest data on omnichannel trends in the Top 1000  
• Conversion rates for Top 1000 retailers offering BOPIS and curbside pickup  
• How shoppable video on TikTok and streaming platforms is being used  
• How brands are leveraging their latest augmented and virtual reality experiences  
• What matters most in omnichannel for the grocery sector  
• Consumer survey data about their omnichannel habits, preferences and recent activity 

Key data from the report: 

• 78.3% of retail chains in the Top 1000 offered BOPIS in 2023, down from 80.0% in 2022.
• 65.4% of store-based retailers in the Top 1000 offered in-store stock statuses, roughly the same as the year before. 
• Only 25.3% of Top 1000 retail chains still offered curbside pickup in 2023, down for the third year in a row from a 2021 high of 55.1%. 
• Office Supplies merchants saw the highest rate of offering curbside pickup by category at 50.0%. 
• 62% of consumers surveyed said they checked product availability at a nearby store online before making a purchase, making it the most popular omnichannel activity. 
• 66% of consumers surveyed indicated that they had completed an in-store or curbside pickup order at Walmart within the past six months.

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Eli Lilly launched LillyDirect in January 2024 as a way to connect patients with telehealth providers, who can write prescriptions for medications that treat obesity, diabetes and migraines. Patients can also access the home delivery portion of LillyDirect without using its telehealth services.

The program initially launched with delivery from online pharmacy TruePill. Eli Lilly says medications may be delivered by either Amazon or TruePill, depending on the customer’s insurance coverage. Amazon says it will deliver the prescriptions in two days, which is the standard Prime delivery window.

Eli Lilly currently offers 14 medications through LillyDirect, and it says it will add more regularly. So far, the list includes the company’s recently approved weight-loss drug, Zepbound. It has seen “significant interest in the platform” so far, Eli Lilly said in a statement without revealing how many members have signed up.

Amazon ranks No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by 2023 third-party GMV. 

Eli Lilly and demand for weight-loss drugs

Eli Lilly is just one pharmaceutical company to sell a new class of weight-loss drugs in 2023. Novo Nordisk’s Wegovy and Ozempic also gained popularity. J.P. Morgan predicted that the market for these GLP-1 drugs, which are used to treat Type 2 diabetes and obesity, could exceed $100 billion in 2030. The firm also anticipates there will be 30 million U.S. users by that point.

Manufacturers have struggled to keep the medications in stock as demand skyrocketed.

Amazon’s history in health care

Amazon first launched its online pharmacy in 2020. That was two years after the retailer spent $753 million to acquire online pharmacy PillPack.

In 2023, Amazon delved further into health care by completing its $3.49 billion acquisition of primary care provider One Medical.

“As we continue to make it easier for people to get and stay healthy, we have identified areas where we can reposition resources so we can invest in invention and experiences that have a direct impact on our customers and members of all ages,” Neil Lindsay, head of Amazon Health Services, wrote in an internal memo at the time. “Unfortunately, these changes will result in the elimination of a few hundred roles across One Medical and Amazon Pharmacy.”

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In a March 7 earnings call with investors, CEO Rodney McMullen said a “strong and growing store network is important.”

“Many of the ways we go to market in digital still comes through the store channel,” McMullen said. “We know that our most profitable customers shop both in-store and online. So it’s important to be there for our customers in a way they choose to shop with us.”

Kroger is No. 8 in the Top 1000, Digital Commerce 360’s database ranking the largest online retailers in North America. Furthermore, Kroger is first in the Top 1000’s Food/Beverage category.

Kroger digital sales in Q4 2023

In its fiscal Q4, Kroger digital sales grew more than 10%. Meanwhile, Kroger’s total sales grew to $37.1 billion in Q4 2023, up from $34.8 billion in Q4 2022.

Customers who shop both in-store and online spend three to four times more than in-store-only shoppers, McMullen said.

“Moving promotions online allowed Kroger to take personalization to a new level, targeting customers more efficiently and increasing the breadth and depth of promotions,” McMullen said.

That led to an 18% increase in digitally engaged households in Q4, he added.

In fiscal 2023, Kroger digital sales grew 12% to reach $12 billion. The retailer also increased delivery sales 24% year over year. Total Kroger sales in fiscal 2023 were $150.0 billion, up from $148.3 billion in 2022.

Kroger customers clipped 4 billion digital coupons in 2023, which is 1 billion more than in 2022, McMullen said.

“Digital is an important growth accelerator in our business,” McMullen said. “And in 2024, we expect to deliver another year of double-digit sales growth.”

Neil Saunders, managing director at retail analysis firm GlobalData, said trends for many of Kroger’s metrics point to wider problems for the company and the grocery sector overall.

“While Kroger’s operating profit and net income numbers were both elevated and strong during the final quarter, the sales line is looking a lot shabbier,” Saunders said. “Total growth of 6.4% looks robust, but it is flattered by the addition of $2.7 billion from an extra week of trade. When this is removed, total sales declined by 1.3%.”

Possible merger with Albertsons

The Federal Trade Commission (FTC) is suing to block Kroger’s proposed $24.6 billion acquisition of Albertsons. The FTC called the deal “anticompetitive” in a statement released Feb. 26.

The two grocery retailers first proposed the deal in 2022. Kroger was slated to buy Albertsons at the time, pending regulatory approval. The merger would allow the chains to create a “premier omnichannel food retailer,” Kroger said in a statement at the time. Together, the retailers would operate more than 5,000 stores across 48 states, with nearly 700,000 employees.

Albertsons is No. 26 in the Top 1000, and second in the Top 1000’s Food/Beverage category.

Data from Placer.ai shows that Kroger was the nation’s most-visited grocery store chain in 2023. It captured 18.8% of annual foot traffic to the 10 most-frequented grocery chains. Safeway, under the Albertsons umbrella, took 10.5% of foot traffic. Aldi had the fourth-most foot traffic (9.4%) among the top 10.

Foot traffic at Kroger grew in three of the last four months. Kroger foot traffic grew 4.9% year over year in February 2024, according to Placer. In January, it decreased 1.2% year over year. It grew 2.7% in December 2023 and 0.4% in November, Placer data shows.

Aldi US expansion

The same day that Kroger announced its earnings, competitor Aldi announced plans to add 800 stores throughout the U.S. by 2028. Aldi also announced that it completed its acquisition of Southeastern Grocers Inc. and its Winn-Dixie and Harveys Supermarket banners.

Southeastern Grocers is an omnichannel retailer with brick-and-mortar grocery stores and liquor stores. It has an online presence, too, with grocery delivery and curbside pickup throughout Alabama, Florida, Georgia, Louisiana and Mississippi.

Aldi said it will invest more than $9 billion over the next five years in its U.S. expansion. The grocer said it will add new locations throughout the country and said it will enter new cities including Las Vegas.

Kroger earnings

For the fiscal fourth quarter ended Feb. 3, 2024, Kroger reported:

• Total sales excluding fuel dipped slightly to $37.1 billion. That’s down 0.5% from $34.8 billion in Q4 2022.
• Comparable sales excluding fuel decreased 0.8%.
• Operating profit grew to $1.19 billion from $826 million in the prior-year period.
• Kroger digital sales grew more than 10%.

For the 12 months ended Feb. 3, 2024, Kroger reported:

• Total sales excluding fuel grew to $150.0 billion. That’s up 1.1% from $148.3 billion in 2022.
• Comparable sales excluding fuel increased 0.9%.
• Operating profit decreased to about $3.09 billion from $4.12 billion the prior year.
• Kroger digital sales grew to $12 billion.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. 

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The retailer’s ecommerce sales surpassed $100 billion for the year, CEO Doug McMillon said in a statement.

“We crossed $100 billion in ecommerce sales and drove share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays,” he said.

Consolidated revenue grew 5.7% in the quarter to $173.4 billion, beating analyst expectations. For the full year, revenue grew 6.0% to $648.1 billion.

Walmart is No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s online retailers by web sales. It is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of top online marketplaces.

How much does Walmart make in online sales?

Ecommerce was a high-growth area for Walmart again in the fourth quarter. That made for a year of strong U.S. online sales, which increased 27% year over year in Q1, 24% in Q2, and 24% in Q3.

Online sales accounted for more than 13% of total sales in fiscal 2024. 

Pickup and delivery drove the online sales growth, chief financial officer John David Rainey told investors. That echoed comments from earlier this year citing the omnichannel service’s role in bolstering ecommerce.

“Ecommerce sales were led by continued strong growth in store-fulfilled pickup and delivery in Q4. Over the last two years, store-fulfilled delivery sales have nearly tripled, and we’re now doing over $1 billion a month, which gives you an indication of why we’re so excited about the progress here,” Rainey said.

Sam’s Club and other Walmart online sales results

Sam’s Club, Walmart’s membership-based warehouse chain, reported ecommerce sales grew 17% in the quarter. The growth was mostly driven by curbside and delivery orders, Walmart said. Omnichannel sales led to online sales growth in Q3, too, when Walmart reported a 16% increase.

Net sales for Sam’s Club grew 2.0% to $21.9 million. Growth was largely driven by food and other consumable products, Walmart said, in addition to an increase in the number of transactions and higher unit volumes. 

Sam’s Club reported “strong growth” in membership income, with total membership increasing 10%.

Walmart didn’t share specific information about Walmart+, its membership program. However, it did finish Q4 with record Walmart+ membership penetration, the retailer reported. 

Its online marketplace also grew, Walmart said. Rainey called Walmart’s marketplace the “linchpin” of the business for its ability to sell third-party products, as well as first-party products, and bring in customers who will see advertisements on the website. There are now more than 400 million SKUs on Walmart’s marketplace, he said, and a “significant portion” of sellers use Walmart Fulfillment Services.

Walmart Connect and Vizio

The retailer also agreed to acquire smart TV manufacturer Vizio for $2.3 billion. More than 70% of Vizio’s TVs are already sold at Walmart. The deal will give Walmart control over more than 20% of the U.S. TV market and further accelerate Walmart Connect’s U.S. growth, the retailer said.

Walmart Connect is the retailer’s U.S. advertising business, which grew 22% in Q4. Global advertising grew 33%. 

The Vizio acquisition gives Walmart registered users, data and in-store ad capabilities. Walmart will gain access to Vizio’s nearly 18 million active users, ad viewership data, and potentially the ability to track purchases to those ad views.

“The combination would be expected to further accelerate Walmart’s media business in the U.S., Walmart Connect, bringing together Vizio’s advertising solutions business with Walmart’s reach and capabilities. These benefits would be further strengthened by the growth of connected TV platforms and Walmart’s industry-leading TV panel sales,” Walmart said in a press release.

Walmart sales results by category

The retailer reported December 2023 was the largest sales month in Walmart U.S. history. It recorded some of its highest volume days ahead of the holidays, and Walmart Marketplace also recorded sales records during the Cyber 5.

Despite a successful holiday season, sales of toys, electronics, home goods and apparel were soft, Rainey said. General merchandise sales also saw a mid-single-digit decrease. At the same time, food sales increased in the high teens. The changes negatively impacted Walmart’s profit margins, he said.

Grocery and health and wellness sales together increased their portion of total sales by 3.3% in fiscal 2024, Rainey said. He noted that they have lower margins than general merchandise.

Nearly half of the growth in grocery sales came from higher-income households, he said. Walmart’s private label brands also grew penetration 1.6% in the quarter, indicating consumers continue to seek out deals. Customers who opt for delivery and prioritize convenience tend to be younger, more tech-savvy and have a higher income than the average Walmart customer, said John Furner, CEO of Walmart U.S.

“When we think about our business today compared to what it was during prior economic downturns, we now have a more compelling offer, a true omnichannel experience that makes us optimistic that more higher-income families will continue shopping with us across categories because we have pickup, delivery, and membership,” Rainey said. 

Walmart earnings

For its fiscal fourth quarter ended Jan. 31, Walmart reported:

• Consolidated revenue grew 5.7% to $173.4 billion.
• Walmart online sales in the U.S. grew 17%.
• Consolidated net income declined 2.3% to $5.7 billion.

For the 12 months ended Jan. 31, Walmart reported:

• Consolidated revenue grew 6.0% to $648.1 billion.
• Consolidated net income grew 44.1% to $16.3 billion.
• Walmart online sales surpassed $100 billion for the year.

Check back for more earnings reports. See Walmart’s previous earnings release story here.

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Amazon’s Whole Foods working with Instacart in Canada

Instacart announced the new addition to its app and website on Feb. 7, including delivery availability for 14 Whole Foods Market stores in the Vancouver, Victoria, Toronto and Ottawa metro areas.

Amazon ranks No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by 2023 third-party gross merchandise value (GMV).

“Our mission at Instacart is to create a world where everyone has access to the food they love, and working with beloved retailers like Whole Foods Market helps us make that mission a reality,” said Chris Rogers, chief business officer at Instacart, in a released statement. “With this launch, we’re proud to welcome Whole Foods Market Canada to the Instacart marketplace, making same-day delivery in as fast as 30 minutes available to their loyal Canadian customers.”

Whole Foods on Instacart availability

Whole Foods, meanwhile embraced the delivery option, framing it as a win for customers.

“We strive to create the best shopping experience for our customers both in stores and online, including finding ways to provide convenience without sacrificing quality,” said Rick Bonin, senior vice president of operations at Whole Foods Market. “We’re excited to work with Instacart in Canada to provide our shoppers with a quick and easy way to get their favorite high-quality foods and products delivered directly to their doorstep.”

The chain will look to benefit from access to tens of thousands of Instacart users in Canada as the deliveries begin, according to Instacart’s press release.

“Both companies are incredibly passionate about providing an exceptional experience to customers, and we’re excited to help Whole Foods Market make its fresh produce, pantry staples, and so much more available to millions of Canadians through Instacart,” said Rogers.

Participating locations

Initially, 11 Whole Foods stores will participate, and three more will follow. Instacart promotes delivery in as little as 30 minutes in some circumstances. Delivery for Whole Foods orders over 35 Canadian dollars will be free for Instacart+ subscribers.

In addition, Instacart touted the use of its recently announced artificial intelligence-based features for order recommendations, recently announced at CES. The app serves orders for groceries, as well as alcohol and prescriptions.

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