Online delivery and pickup sales rise to $5.9B in November but remain well off their peak

Diving letter:

  • U.S. grocery shoppers spent $ 5.9 billion on delivery and pick-up jobs in November, up 3.6% from $ 5.7 billion they spent on these services in August. This is the result of a recent survey by Brick Meets Click and Mercatus on grocery shopping.
  • These services account for 73% of the $ 8.1 billion spent on ecommerce grocery orders each month. The number of monthly households using online grocery services rose 3% to 38.7 million in November from August, and the average number of orders they placed during the month reached 1.62 – – an increase of 2%.
  • Online grocery sales have plateaued in recent months after a rapid surge that began in March and March Reached its peak in the middle of the year due to the novel coronavirus pandemic.

Dive Insight:

Consumers quickly switched to online grocery channels when the pandemic broke out, and while orders for delivery or pick-up have slowed somewhat, recent numbers make it clear that interest in e-grocery shopping has continued to surge.

Brick Meets Click and Mercatus reported that grocery delivery and collection was only $ 1.2 billion in sales in August 2019. Even when counting orders from delivery services like FedEx, United Parcel Service, and the United States Postal Service, grocery e-commerce was only $ 2 billion at the time.

The increase in pick-up and delivery sales between August and November of this year is mainly due to a 5% increase in order volume, according to the survey. In total, consumers placed 62.7 million monthly orders to either pick them up at a store or to receive them through a grocer’s own delivery service or a third-party e-commerce provider like Instacart or Shipt.

The continued high level of consumer interest in buying groceries online is reflected in grocers’ financial results. Retailers like Kroger and Albertsons continued to see rapid growth in digital sales, although overall sales growth is gradually slowing.

Consumer satisfaction with food e-commerce is also increasing. The proportion of monthly active online grocery shoppers who said they were extremely or very likely to be extremely or very likely to patronize the service they last used within 30 days rose eight points in November from August to 83%, the data said demonstrate. The number rose 40 points from March when widespread stock shortages and a shortage of delivery locations tested grocers’ ability to deal with booming online demand.

The survey, which summarized the responses from 2,067 adults collected between November 11-14, also shows that the percentage of first-time online grocery shoppers is declining. In November, 17% of the research participants were new to grocery e-commerce, compared to 23% in August.

“As the online customer mix tends towards the more experienced users, retailers will face headwinds for their delivery and pick-up offerings to grow,” said David Bishop, partner of Brick Meets Click, in a statement. “This challenge underscores the importance of leveraging tactics to increase usage and spend per order with existing customers.”

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