Pickup continues to build steam, online report says
According to the latest e-commerce report from Brick Meets Click, click-and-collect continues to see a growing share of online grocery purchases. The share of sales rose by five points between January and February.
“As a result, February pickup captured nearly half of all online grocery sales and is growing in importance as it continues to generate a larger proportion of sales,” the company wrote in its announcement.
According to Brick Meets Click, February pickup and delivery revenue was $ 6.1 billion, down $ 1 billion from January as both the number of online shoppers and the frequency of purchases decreased. Total online sales for the month were $ 8 billion, up from $ 9.3 billion in January.
Pickup continues to gain traction as shoppers turn to the lower fees of the service and the familiar routine of traveling to their local business.
The growth highlighted in Brick Meets Click’s latest report is due to grocers continuing to increase service availability, lower fees, and introduce improvements like pickup lockers that add convenience. Retailers appreciate the affordable economics of pickup in the face of a fundamental shift to margin-diluting online sales driven by the pandemic.
However, the latest data show worrying signs. Among the first-time collectors surveyed at the end of February, less than 30% said that they would “very” or “extremely” probably use the service again. This is comparable to the 40% of first-time delivery users who announced it.
“These results are worrying as collection is becoming increasingly important to brick-and-mortar retailers for both strategic and economic reasons,” said David Bishop, partner at Brick Meets Click, in the announcement.
While pickup has continued to gain in revenue share, this growth could flatten out in the coming months as delivery options – mostly third-party providers like Instacart, Shipt, and DoorDash – evolve. This gives grocers an opportunity to improve customer service for click-and-collect, as well as innovations that save time and add value. Albertsons and Ahold Delhaize are now dealing with pickup cabinets and kiosks, while Walmart is now offering product samples within pickup orders. US retailers are also adopting technology that will reduce roadside waiting times.
Courtesy of Brick Meets Click
Delivery and pick-up orders combined accounted for more than three-quarters of online grocery sales in the United States in February. a slight increase compared to the latter half of 2020, according to Brick Meets Click.
With the end of the pandemic, shoppers seem to be turning back to in-store shopping. The number of monthly active online shoppers decreased by 12% to 60.1 million between January and February, while the order frequency decreased by 6%. The average order value increased 4%, while the average pick-up and delivery order size reached $ 82, which is 55% higher than average orders via ship-to-home services.
Consumers over the age of 60 accounted for more than 40% of the reduction in active users, indicating that many seniors are returning to in-store shopping.