The State of Ecommerce: Grocery
The only category that grew revenue without sacrificing margin
- Revenue grew 27% YoY with gross margin held flat, the healthiest P&L dynamic in the portfolio.
- OOS losses tripled and the OOS rate rose, unlike most categories where Prime Day timing explains more of the increase.
- Demand is outrunning replenishment. Get the data on where Grocery supply chain execution is breaking down.
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Key takeaways
Inventory surged ahead of demand.
On-hand inventory rose 37% YoY, suggesting aggressive forward stocking for continued volume growth.
Fulfillment capacity is lagging demand.
Fulfilled units grew 20% YoY while fill rate fell 8pp to 83%, with June fill rate down to 80%.
Pricing eased while discounts rose.
ASPs fell 4% YoY to $13.57 as discount rate increased 1pp to 7%, opposite the broader industry trend.
Grocery traffic expanded sharply.
Glance views rose 33% YoY while conversion held at 72%, confirming a high-intent audience.
Grocery delivered the healthiest P&L.
Revenue grew 27% YoY without sacrificing gross margin, driven by unit growth and cost efficiency.
Stockout losses reveal a real revenue gap.
OOS revenue loss more than tripled as high-turn ASIN replenishment failed to keep pace with demand.
