Grocery Doppio Finds Grocers Support Instacart’s IPO as They Rely on Third-Party Apps Less to Scale

Grocery Doppio’s latest grocery industry survey reveals digital grocery sales plateau, but grocers’ confidence rises as they continue to grab market share from third-party apps

NEW YORK and MIAMI, Sept. 12, 2023 /PRNewswire/ — Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from their State of Digital Grocery Performance Scorecard for August, 2023. The Performance Scorecard reflects the latest analysis of shopper orders, plus grocers’ opinions about Instacart’s imminent IPO and their relationships with third-party grocery apps.

The August data found that the majority of grocers believe Instacart’s decision to go public is the right strategy, this includes 59% of all grocers and 72% of grocers that use Instacart. However, 84% of grocers also believe their own digital strategies will be able to compete with third-party apps. This is important, as 87% of grocers fear losing touch with customers who use third-party apps, 76% worry about media revenue competition from the apps, and 61% noted they compete with third-party apps for digital talent.

On the whole, grocery executives have grown more confident in their digital grocery businesses. After snatching a whopping 35% worth of market share from third parties between August 2022 and August 2023, just 53% of grocers now report that they need third-party apps like Instacart to scale, as compared to 66% who felt that way when Grocery Doppio asked them this question in 2021.

The monthly State of Digital Grocery Performance Scorecards are one of many resources available on the Grocery Doppio website. The latest report was built around data analysis of 1.9 million shopper orders and survey results from more than 35,407 shoppers and 3,376 U.S. grocery executives.

More key findings from the August 2023 Performance Scorecard include:

  • Grocers continue to grab market share amidst flat third-party growth, but apps retain larger basket sizes
    • Third-party apps gained just 0.1% in sales between July and August.
    • Grocers increased their share of the digital market from 81.9% to 83.6% YTD, while third-party apps’ share dropped from 18.1% to 16.4% over the same period.
    • Third parties retain the edge in average basket size, exceeding grocers’ own average basket size by $26.
  • Total grocery sales gained marginally in August, 2023, while digital’s market share remained flat
    • Total grocery sales were $78 billion in August, up slightly from the Q2 average of $75.3B.
    • Digital grocery sales were $10 billion in August, up slightly from the Q2 average of $9.8B.
    • Digital’s share of all grocery sales was 12.8% in August, up slightly from 12.7% in July, but down from the Q2 average of 13.1%

“Grocers have developed significant competitive strengths in the digital space since 2021,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “Although they remain wary of competition with Instacart and other third-party apps, they now have a confidence in their own digital capabilities that did not exist two years ago.”

“Instacart’s IPO will be good for the digital grocery ecosystem,” added Charlie Kaplan, Chief Revenue Officer at Wynshop. “We expect to see grocers and third-party apps alike up their digital game, investing more in personalization, inventory management, fulfillment efficiencies, and loyalty, to grow profitable digital grocery businesses.”

Grocery Doppio is a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth. The monthly State of Digital Grocery Performance Scorecards are one of many resources available on the Grocery Doppio website, along with rich, research-driven grocery content, fact-based observations, inspiring perspectives, and deep performance benchmarks that identify improvement opportunities for grocery retailers.

To download Grocery Doppio’s “State of Digital Grocery Performance Scorecard: August 2023,” click here.

About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at www.incisiv.com.

About Wynshop 
Wynshop is an ambitious team of digital innovators obsessed with a solitary mission—helping grocers and other local store-based retailers grow wildly successful online businesses. Its refreshingly easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and gives retailers the ability to control every facet of their customers’ digital shopping experience. This results in a more personalized customer journey and amplified shopper loyalty. Learn more at www.wynshop.com.

Media Contact:
Laurel Getz 
[email protected]
203.767.5963

SOURCE Wynshop

Originally published at https://www.prnewswire.com/news-releases/grocery-doppio-finds-grocers-support-instacarts-ipo-as-they-rely-on-third-party-apps-less-to-scale-301924947.html
Images courtesy of https://pixabay.com

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