INDUSTRY REPORT
Grocery market resilience in Q2 2025
The grocery ecommerce sector defied expectations in Q2 2025, showing remarkable resilience despite economic headwinds. Our data reveals that operational excellence and strategic cost management have become essential factors for success in this competitive space.
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Key takeaways
- Inventory surge continues but at slower pace: Q2 saw Grocery on-hand inventory increase 46.4% year-over-year, representing one of the largest inventory expansions across all categories
- Price sensitivity remains significant: Average selling prices declined 6% in June year-over-year as discounting remains relatively low, indicating consumers actively seek lower-priced options
- Sales growth outpaces traffic: While traffic grew only 2.5% year-over-year, ordered product sales increased 15.4%, demonstrating improved conversion rates
- Out-of-stock challenges persist: Despite declining out-of-stock percentages, revenue loss due to out-of-stock issues increased 18.5% year-over-year, highlighting ongoing supply chain and inventory allocation challenges
- Operational efficiency is key: With filled unit volume declining quarter-over-quarter, brands must focus on inventory management and fulfillment optimization to maximize sales opportunities
- Revenue loss due to OOS: Revenue Loss Due to OOS increased 18.5% in Q2 year over year as RepOOS% hits 18 month low
