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

Excluding subsidiary Sam’s Club, the retailer rose 150 basis points from the same period last year, reaching its highest share price to date.

Walmart’s success is directly tied to consumers’ attempts to save money on grocery shopping. According to the report, the retailer’s increase in sales is due to rising inflation and interest rates as households face declining personal savings and rising credit card balances.

“Walmart’s low prices and efficient omnichannel strategy became increasingly attractive,” the report said. “Walmart’s ability to provide consistent, cost-effective online shopping experiences was critical to attracting and retaining customers.”

Walmart has deployed various strategies such as first-party delivery, which have significantly impacted the market dynamics. According to the report, mass retailers, led by Walmart, accounted for nearly half of all delivery sales in the second quarter, a year-over-year change.

Mass retailers also dominate self-collection orders, accounting for almost 58% of self-collection sales, while supermarkets account for only 28%.

Pickup remains the dominant method of receiving e-grocery sales in the U.S., although its share declined slightly by 110 basis points compared to the second quarter of 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 the second quarter of 2024, resulting in a market share of just 27.3%.

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

More and more supermarket customers are also shopping at mass retailers such as Walmart and Target. Over 32% of supermarket customers shopped at mass retailers in the second quarter of 2024, with one in five choosing Walmart.

The majority of dual customers are middle class, earning $50,000–$99,000 and $100,000–$199,000 respectively.

Target also made gains in the second quarter of this year. The retailer secured 100% share of e-grocery sales in the second quarter of 2024, up 120 basis points from the second quarter of 2021. According to the report, “Target’s balanced approach to pricing and strong execution, particularly in self-pickup fulfillment, has helped it carve out a niche between Walmart and traditional supermarkets.”