Faster delivery speeds are helping to grow online grocery sales in the U.S., which have increased by more than 20% year over year in the six consecutive quarters through Q1 2026.
Fulfillment speeds are attracting a greater share of online grocery spending, according to data from Brick Meets Click. The firm’s grocery shopper survey tracks monthly online sales and trends in that industry.
Brick Meets Click data indicates that “ultra-fast delivery” (such as Amazon and Walmart guaranteeing arrival in less than an hour, in some situations) is “eroding the need for quick trips to the physical store.” Such innovations are allowing Amazon and Walmart to expand both their market share and share of wallet within their respective customer bases, Brick Meets Click said.
Brick Meets Click categorizes online grocery sales based on three receiving methods:
- Delivery: Includes orders received from a first- or third-party provider, such as Instacart, Shipt or one of the retailer’s own employees.
- Pickup: Includes orders received by customers either inside or outside a store or at a designated location/locker.
- Ship-to-home: Includes orders that consumers receive via common or contract carriers like FedEx, UPS, USPS, etc.
Online grocery sales through Q1 2026
In addition to growing more than 20% year over year in Q1 2026, online grocery sales have taken a larger share of total grocery spending in the U.S., according to Brick Meets Click.
During Q1, online grocery orders accounted for more than 19% of the category’s total sales. That’s an increase from having less than a 15% share of total grocery sales in Q3 2024, according to Brick Meets Click. It said that when excluding the Ship-to-Home segment, online’s share of total grocery sales increased to about 16% from 12% over the same period. Most regional grocers do not offer Ship-to-Home, Brick Meets Click said.
Brick Meets Click estimates that same-day online grocery purchases accounted for about 80% of Delivery orders during Q1 2026. They also accounted for more than 30% of Ship-to-Home orders across all retail formats, the firm said.
In addition, ultra-fast fulfillment (such as one hour or less) accounted for 18% of all Delivery orders. It also made up 10% of all Ship-to-Home orders.
“Given this competitive activity, the big question for traditional grocers — and especially regionals — is how they will accelerate growth and remain relevant while protecting profit margins and the customer experience,” said David Bishop, partner at Brick Meets Click, in a statement.
How Amazon and Walmart are gaining online grocery market share
Brick Meets Click said Walmart has achieved larger share gains than Amazon and is now approaching a 40% share of total U.S. online grocery sales. It said Delivery has propelled Walmart’s growth, specifically orders it has fulfilled in an hour or less.
After Walmart’s most recent fiscal quarter, chief financial officer John David Rainey said the retailer could now reach about 60% of the U.S. population through delivery in 30 minutes or less.
On the same call, the CEO of Walmart U.S., David Guggina, noted that consumers are using its AI agent, Sparky, for everyday essentials such as food and other consumables. Walmart noted that customers using the Sparky AI agent have an average order value (AOV) that’s about 35% higher than that of non-users.
Meanwhile, Brick Meets Click said Amazon captured its share gains by expanding the availability of fresh groceries within its same-day fulfillment network. In March, Amazon introduced options to fulfill orders in three hours or less.
Then, in May, it gave its B2B customers the same treatment through Amazon Business. Later that month, it announced delivery in 30 minutes or less in some areas through Amazon Now.
Amazon and Walmart are Nos. 1 and 2, respectively, in the Top 2000 Database. That market analysis tool ranks the largest online retailers in North America by their annual ecommerce sales. Both retailers fall under the Mass Merchant category within the database.
What grocery-focused retailers are doing to grow online sales
Kroger and Albertsons, the two largest Food & Beverage retailers in the Top 2000 Database, have each seen online sales grow at least 10% for the past eight quarters.
In Kroger’s most recent fiscal quarter, it announced that its ecommerce business (which includes its retail media network) turned profitable “ahead of schedule.”
And in Albertsons’ most recent fiscal quarter, it noted that AI-driven capabilities have led to “personalization that drives higher conversion, larger baskets and greater loyalty.”
Both retailers pointed to their loyalty programs as key online grocery sales drivers. Their loyalty programs provide data fueling their respective retail media networks. In turn, the retail media networks improve sales opportunities with specialized recommendations.
Additionally, both retailers have joined a trend of partnering with third parties on last-mile delivery. So, too, has Aldi in the U.S.
Instacart is now the exclusive fulfillment partner for Aldi U.S. across the retailer’s website and app. The news came months after Aldi joined the Uber Eats delivery platform in September. Aldi is still available via Uber Eats, but the retailer uses Instacart for its owned ecommerce channels.
Click here to read our last update on online grocery sales.
Do you rank in our databases?
Submit your data and we’ll see where you fit in our next ranking update.
Sign up
Stay on top of the latest developments in the online retail industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.