Video: eGrocery Insights - July 2025

Welcome to the new episode of US eGrocery Sales Trends – July 2025, hosted by Mark Fairhurst, Chief Growth Marketing Officer at Mercatus, and David Bishop, Partner at Brick Meets Click. This month’s discussion opens with a deep dive into the structural shift shaping the U.S. online grocery market: The rise of the “free delivery era”.

David explains how Walmart’s aggressive membership strategy has effectively removed standard delivery fees for most customers, lowering a major barrier to adoption and driving continued growth in the delivery segment.

Mark and David then examine how this shift impacts Pickup service offered by regional grocers. David outlines why Pickup doesn’t have to become a loss leader and shares strategies (such as tiered time-slot pricing) to keep the service competitive while protecting margins.

The conversation shifts to operational levers like batching orders, as well as revenue offsets through retail media. Partnerships with CPG brands willing to spend for visibility on the digital real estate of grocers represent an enormous area for improvement amongst regionals. As David points out, Walmart currently earns over $4 per order through retail media while regionals lag far behind, typically earning less than $1.

Pivoting to July’s eGrocery results, where a record large monthly active user base was fueled by the return of infrequent and lapsed users, Mark asks David to break down where these returning customers are coming from, what motivates them, and why they represent an untapped opportunity for grocers to re-establish relationships and drive loyalty.

Focusing on the growing influence of “super users” who have placed four or more orders with the same service in the past three months, these high-value customers now make up more than 50% of all online grocery shoppers.

David emphasizes the importance of moving customers from their first to their fourth order through seamless digital experiences, targeted promotions, and loyalty-driving programs like Walmart does with its Walmart Cash initiative.

Watch the full episode for clear and practical insights on:

• What the “free delivery era” means for regional grocers
• How to keep Pickup competitive without sacrificing margins
• The role of retail media in offsetting online fulfillment costs
• Why returning infrequent and lapsed users are key to future growth
• Strategies for converting first-time customers into loyal super users

VIDEO CHAPTERS

0:00 – Introductions

0:55 – Is this the era of free delivery?

5:15 – How can regionals keep pickup competitive?

12:18 – The End of Search & the Beginning of Conversational Commerce

14:10 – Untapped Value: Getting Infrequent and Lapsed Shoppers Back

18:17 – The Super User: 4+ Orders in 3 Months

20:48 – The Importance of UX: Reduce the Shopper’s Learning Curve

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