The 5 top performers in grocery ecommerce

The 2023 Ipsos Ecommerce Experience Report highlights the leaders in the grocery eCommerce sector, showcasing how they are meeting consumer demands.

Key Insights from the Ipsos Report

The Ipsos report reveals that Walmart and Target lead the way in both delivery and curbside pickup. Traditional supermarket operators, including Albertsons, Food Lion, and H-E-B, are also excelling in specific aspects of their eCommerce services.

“Ecommerce is really about convenience, communication, and completeness,” said Brad Christian, head of strategic growth, U.S. channel performance at Ipsos, listing what he called the “three C’s” of eCommerce. “If this isn’t a convenient and flexible way of conducting business with your brand, then I’m less inclined to want to use it.”

The report is based on a fall 2023 survey of 1,200 Americans, a series of mystery shops, and an analysis and ranking of key purchase consideration drivers across online shopping, buy-online/pick-up in store, and curbside pick-up.

1. Walmart

Walmart achieved the top score in both delivery (tied with Target) and curbside pickup in the Ipsos report, making significant gains from the previous year. Its investments in technology aimed at driving efficiency and streamlining processes have yielded positive results.

“In early 2023, we saw that brands like Walmart and Target were making substantial investments in their eCommerce offers, with Walmart focusing heavily on store automation,” said Christian. Automation helps monitor inventory levels and out-of-stocks in real time, improving order completeness and accuracy.

Walmart scored 75% for ease of delivery, coming in second only to Aldi, which scored 78%. For curbside pickup, Walmart and Kroger tied for second place at 77%, just behind Amazon Fresh at 79%.

2. Target

Target has also significantly invested in its eCommerce capabilities, adeptly driving efficiency by leveraging its stores to fulfill online orders.

“At any given time, Target may fulfill 96.8% of their online orders through their actual stores, not necessarily distribution centers,” Christian noted.

An Insider Intelligence report last year explained that Target has expanded its network of “sortation centers,” which collect orders from as many as 40 different stores and group them by delivery routes using Shipt, its in-house delivery network.

3. Albertsons

Albertsons was identified as a “Brand to Watch” in the Ipsos report, citing improvements in both delivery and curbside pickup. The retailer shared Brand to Watch honors for its delivery service with Target and Walmart, and was named alongside Walmart for curbside pickup.

Albertsons excelled in customer intent to reuse its service, with 61% indicating they would use it again, far surpassing the industry average of 44%. They also ranked highest for communication regarding curbside pickup, achieving a remarkable 97%.

4. Food Lion

Food Lion stood out for its excellent communication during both delivery and pickup services. It scored 83% for satisfaction with communication regarding delivery, tying with Whole Foods for the top spot, while its 95% rating for curbside pickup was second only to Albertsons.

“There is a sweet spot around how you communicate with the consumer,” Christian explained, emphasizing that too much communication can detract from the experience.

5. H-E-B

H-E-B performed well across nearly all metrics in both delivery and curbside pickup, tying with Albertsons for delivery performance. It ranked second for curbside pickup performance, trailing only Walmart.

Seventy-six percent of consumers expressed satisfaction with their communication with H-E-B, exceeding the overall industry score of 72%. Additionally, 63% indicated they would likely use H-E-B’s curbside pickup again, compared to an industry average of 58%.

Conclusion

The Ipsos report underscores the competitive landscape of grocery eCommerce, highlighting the top performers who are setting benchmarks for convenience, communication, and completeness. As these retailers continue to innovate and enhance their services, the overall customer experience is poised to improve even further.