As shoppers flocked online and to stores during Black Friday and Cyber Monday, the grocery category stood out as a key battleground for retailers. With inflation affecting consumer spending, discounted groceries have become a critical driver for both shopper savings and retailer competitiveness.

In fact, according to the NRF, one of the top shopping destinations during Thanksgiving weekend were department stores (42%), online (42%),and grocery stores and supermarkets (40%). Clearly, consumers are looking to stock up in bulk on their groceries to maximize their savings.

To understand the pricing dynamics in the grocery category, DataWeave analyzed grocery discounts across leading grocers, uncovering significant trends that shaped consumer choices during this holiday shopping period.

Our research encompassed retailers like Amazon, Target, and Walmart, examining their discounting strategies across subcategories, alongside trends in share of search for leading CPG companies.

Also check out our detailed analysis of discounts and pricing for health & beauty and home & furniture this Black Friday.

Key Grocery Market Stats for Black Friday-Cyber Monday 2024

• Retailer Discounts: Walmart offered the highest average absolute discount at 27.6%, followed by Amazon at 20.4% and Target at 14.0%
• Subcategory Insights: Beverages Category at Walmart saw the deepest discounts, with an average of 33.4%
• Top Gaining Brands: Cesar experienced the largest increase in share of search during the sales period (+3.89%)

This blog will dive deeper into grocery discount trends and brand-level strategies, offering insights for retailers looking to stay competitive in the grocery sector.

Our Methodology

For this analysis, we tracked the average discounts offered by major U.S. grocery retailers during the Thanksgiving weekend, including Black Friday and Cyber Monday. We focused on key subcategories within the grocery segment, capturing trends in discounting strategies.

• Sample Size: 18,324 SKUs
• Retailers Tracked: Amazon, Walmart, Target
• Subcategories Reported On: Fresh Produce, Dairy & Eggs, Pantry Essentials, Snacks, Frozen Foods, Meat & Seafood, Household Essentials, Beverages, Pet Products, Baby Products
• Timeline of Analysis: November 10 to 29, 2024

In the following insights, the Absolute Discount represents the reduction of the selling price compared to the Manufacturer’s Suggested Retail Price (MSRP). The Additional Discount reflects how much lower the selling price is during Black Friday compared to its price a week before the sale. This metric reveals the actual or effective value of the sale event, beyond the standard discounts typically offered.

Key Findings

Retailer-Level Insights

• Walmart emerged as the leader in grocery discounting, offering the highest average absolute (27.6%) and additional (18%) discounts.
• Amazon adopted a mid-tier discounting strategy, with average absolute discounts of 20.4%.
• Target, while more conservative, maintained competitiveness in select subcategories like baby products.

Subcategory Insights

• Pantry Essentials saw Walmart leading with an average discount of 31.2%, appealing to budget-conscious consumers stocking up for the holidays.
• Fresh Produce showed consistent discounting across retailers, with Amazon slightly ahead at 27%.
• Beverages stood out for significant discounting at Walmart, with an impressive 33.4% average discount.

Brand-Level Insights

• Lay’s led in absolute discounts (37.52%) and additional discounts (26.23%) showcasing aggressive pricing in the snacks subcategory.
• Good & Gather maintained its competitive edge with strong discounts, appealing to price-conscious consumers seeking value.
• Brands like Blue Buffalo (pet food brand) offered significant absolute discounts, but with a low additional discount of just 2%, the overall impact of the sale event on effective value was limited.

Share of Search Insights

• Cesar (dog food brand), Tide (laundry staple) and Doritos saw significant gains in share of search, reflecting successful promotional strategies.
• Brands like Pampers (baby diapers brand), Healthy Choice, (frozen foods brand) and Pedigree (pet food brand) experienced a decline, indicating less effective engagement during the sale period.

Who offered the lowest prices?

In the previous analysis, we focused on the top 500 products within each subcategory for each retailer, showcasing the discount strategies for their highlighted or featured items. However, to identify which retailer offered the lowest or highest prices for the same set of products, it’s necessary to match items across retailers. For this, we analyzed a separate dataset of 1433 matched products across retailers to compare their pricing during Black Friday. This approach provides a clearer picture of price leadership and competitiveness across categories.

Here are the key takeaways from this analysis.

Category-Level Analysis

• Walmart is the lowest priced retailer overall for the grocery category, with an impressive average discount of 44.60%. This significant discount advantage makes Walmart a leading option for value-seeking consumers.
• Target follows with strong discounts of 36.73%, indicating solid pricing in comparison but less aggressive than Walmart.
• Interestingly, Amazon was the most expensive in Grocery, with an average discount of only 6.3%.

Subcategory-Level Analysis

• Walmart leads in various subcategories such as Pet Products (21.12%), Dairy & Eggs (13.79%), Household Essentials (13.05%), Frozen Foods (15.07%), and Meat & Seafood (17.60%), showcasing its extensive value across the board.
• Target excels in Beverages (14.58%) and Baby Products (15.00%) with competitive discounts, standing out in these specific subcategories.
• Kroger provides notable value in Pantry Essentials (20.04%) and Fresh Produce (15.85%), although its overall average discount is lower than Walmart’s.
• Amazon consistently ranks lower in terms of average discounts across most subcategories, highlighting it as less competitive for consumers seeking the lowest prices.

Brand-Level Analysis

• Walmart also holds the top position for several key brands like Cheetos (14.92%) and Dannon (8.81%), making it the best option for consumers looking for budget-friendly choices across popular brands.
• Target takes the lead for brands like Betty Crocker (25.20%) and Chobani (11.37%), showing that it can offer value for specific products.
• Kroger maintains strong discounts for brands such as Delmonte (9.19%), but it does not outpace Walmart in the overall grocery brand comparison.
• Amazon generally lags behind in average discounts for most brands, with Dannon (1.12%) and Chobani (2.43%) showing significantly lower discounts.

Walmart is the lowest priced retailer in the grocery category and provides substantial value across a wide range of subcategories and popular brands. This ties in with Walmart’s ELDP pricing strategy. The retailer leads in overall average discounts and maintains its position as the go-to for price-conscious consumers. Target offers strong value in certain subcategories and brands but falls short of Walmart’s broad value based pricing advantages.

What’s Next

For grocery retailers, competitive pricing and targeted promotions are critical to driving sales during key shopping events. As consumers continue to prioritize value, staying ahead in the discounting game can significantly impact market share.

For detailed insights into grocery discounting strategies and to explore how DataWeave’s solutions can help retailers optimize their pricing, contact us today!

Stay tuned to our blog for further analyses of other categories during Black Friday and Cyber Monday.