Walmart captured 37% of the U.S. e-grocery market in the second quarter of 2024, according to data from the monthly Brick Meets Click/Mercatus Grocery Shopping Survey.

Excluding its subsidiary, Sam's Club, the retailer climbed 150 basis points compared to the same period last year, reaching its highest share level to date.

Walmart's success is directly linked to consumers trying to save money on groceries. According to the report, the retailer's increase in sales is attributed to rising inflation and interest rates, as households face declining personal savings and growing credit card balances.

"Walmart's low prices and efficient omnichannel strategy became increasingly appealing," the report states. "Walmart's ability to deliver consistent, cost-effective online shopping experiences has been pivotal in attracting and retaining customers." 

Walmart has employed various strategies, such as first-party delivery, which have significantly influenced market dynamics. According to the report, mass retailers, led by Walmart, captured nearly half of all delivery sales in the second quarter, a shift from the previous year.

Mass retailers also dominate pickup orders, holding nearly 58% of pickup sales, while supermarkets account for only 28%.

Pickup remains the dominant method for receiving e-grocery sales in the U.S., although its share has slightly decreased by 110 basis points compared to Q2 2023.

Other supermarkets are struggling to keep up with Walmart. While Walmart's sales soared, other supermarkets experienced a decline, losing 150 basis points by the end of Q2 2024, resulting in only a 27.3% market share.

The decline began in early 2022, after the expanded chid tax credit—a supplemental fund given to low-income U.S. households during the pandemic—expired, and housing costs rose.

An increasing number of supermarket customers also shop at mass retailers like Walmart and Target. Over 32% of supermarket customers shopped with mass retailers in Q2 2024, with one in five choosing Walmart.

The majority of dual customers are middle-income groups earning $50,000–$99,000 and $100,000–$199,000.

Target also made gains in this year's second quarter. The retailer secured a % share of e-grocery sales in Q2 2024, up 120 basis points since Q2 2021. According to the report, "Target's balanced approach to pricing and strong execution, particularly in Pickup order fulfillment, has helped it carve out a niche between Walmart and traditional supermarkets."