2024 May Board Book

• In February, e-commerce sales were down 10% versus year ago, driven by lower average order values (people buying less in each order). Digging into the methods within e-commerce, ship-to-home and pick-up contracted while delivery just over 4%. The expansion of delivery was driven by more monthly active users. Kroger’s heavy promotion of their delivery service with an annual fee ranging from $59-99 was likely a factor. Also noteworthy, during February there was a clear contraction in low-income households using pick-up or delivery services, even at Walmart. • In March, e-commerce sales were flat to the same period in 2023. Pick-up and delivery methods grew share, while ship-to-home continued its contraction. As of March, 78% of all US households have tried some form of e-commerce, while active monthly users as a percent of total households hovers around 50%. About 27% monthly active users are shopping online via mass (Walmart, Target) and traditional supermarkets.

Innovation

We are in the middle of planning for both the 2024 Excelerator and our new “Innovation Sprint.” The theme for the Excelerator will be focused on Health and Wellness and Innovation Sprint will have a focus on performance of lactose-free milk in coffee shops. We look forward to sharing more information with the board as the plans progress.