Walmart, Target and Kroger compete on grocery delivery

As retailers compete for grocery shoppers, some of the big names in the business have zeroed in on the same strategy: get deliveries to customers’ doors quickly.

This week, Target announced a new paid membership program with free same-day home deliveries as a key perk. Walmart expanded its same-day delivery offering to allow shoppers to get online purchases dropped off earlier in the morning.

And Kroger said Thursday that home deliveries helped propel its more than 10% year-over-year growth in digital sales and 24% year-over-year jump in delivery sales in the most recent quarter.

With same-day deliveries, the three retailers are not only trying to outmatch one another on convenience. They’re also turning brick-and-mortar locations — and the short distance to customers’ homes — into their biggest advantage over Amazon and other e-commerce players, said Michael Baker, a retail analyst for D.A. Davidson.

“This, over the last few years, has completely flipped the switch and turned stores into an asset,” he said.

Walmart is the largest grocer in the U.S., with 23.6% of market share in 2023, according to Numerator, a market research firm. Kroger is second, with 10.1% of market share. Target is the ninth largest grocer by market share, with 2.7%, the firm estimated.

With Target’s announcement this week, Walmart, Target and Kroger will all have paid membership programs with home deliveries as one of the benefits. The subscription services have similar price points and minimums, such as requiring customers to spend at least $35, to get goods dropped at their homes.

Target Circle 360, which launches in early April, will cost $99 per year, but will be $49 for customers who have the retailer’s credit card and for those who sign up during a promotion timed for the program’s launch.

Walmart+ costs $98 per year or $12.95 on a monthly basis, with perks like gas discounts along with free shipping and free grocery deliveries. And Kroger has a program called Boost, which has a $59 per…