Sep 12th 2018
Key Takeaways
• Kroger’s online sales in 2018 have managed to remain fairly constant, with dips in both February and June.
• While 2018 revenue from online sales is steady, Kroger’s growth in revenue for the first six months of this year is -10% compared to the staggering 140% growth in revenue they saw in the first six months of 2017.
As online orders and delivery quickly become common practice, more traditional brick and mortar stores are finding that in order to compete, they must do the same. Edison Trends analyzed this year’s sales from Kroger, the nation’s largest supermarket chain, whose foray into online sales resulted in solid revenue growth in 2017. The research indicates that the company, while sustaining its 2018 sales traction, has yet to reach the same degree of revenue growth it experienced last year.
Looking at monthly revenue and order volume, Kroger’s 2018 online sales remained constant for most of the year, fluctuating only marginally within +/- 3% by the end of this period. The biggest dips in sales were found in February, June, and July, while the highs were in January, March, and August.
Figure 1: According to Edison Trends research, from January to August 2018, monthly revenue and order volume of online Kroger purchases had little overall change.
During the first six months of 2017, Kroger saw incredible growth fueled by online purchases — growing its online sales by a staggering 140% between January and June. In the first six months of 2018 however, growth in online sales fell to -10%.
Figure 2: Comparing the first half of this year to last, Edison Trends research found that growth from January to June was approximately 140% in 2017 and approximately -10% in 2018.
Compared to the week of June 11-17, weekly values of revenue and order volume grew around 25%-30% by the first week of September.
It’s still too early to tell whether or not the recent uptick in online sales this past quarter will be enough to help Kroger grow beyond its first 6 months of steady sales.
Figure 3a: Edison Trends' analysis found that from June 11 to September 3, 2018, weekly revenue and order volume of online Kroger purchases saw growth. Values are in relation to the week of June 11-17. For example, "1x" means "1x the Kroger sales on June 11-17."
Even without the same growth, Kroger’s online sales in August were approximately 50% higher compared to last year at this time.
Figure 3b: Comparing year over year daily data, Edison Trends research found that revenue due to online Kroger purchases was higher in August 2018 than in August 2017. Values are in relation to August 01, 2017. For example, "1x" means "1x the Kroger sales on August 1, 2017."
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*The data shown is based on a sample of anonymized and aggregated e-receipts from millions of consumers in the United States.