Pickup, delivery growth spurs March online grocery sales

According to the latest survey by Brick Meets Click / Mercatus Grocery Shopping, a continued shift towards pickup and delivery orders helped US online grocery sales recover in March, peaking for the past year.

Brick Meets Click announced Thursday that online grocery sales were $ 9.3 billion in March, up 16.3% from $ 8 billion in February and a record high of 9.3 billion US dollars in January. Month to month, March pickup and delivery revenue grew 16.4% to $ 7.1 billion, while home shipping revenue – delivered by regular or contracted parcel carriers – grew 16.7% to $ 7.1 billion. $ 1 billion soared.

The growth meant a 43% increase in online grocery sales from the one-year COVID-19 pandemic mark of $ 6.5 billion in March 2020, Brick Meets Click said. Specifically, pickup and delivery revenue increased nearly 78% over the period from $ 4 billion to $ 7.1 billion, while home shipping revenue increased 16% from $ 2.5 billion to $ 2.1 billion Billion dollars. The change quantifies the disruptive effects of the pandemic, which has further transformed the way people buy their groceries, the Barrington, Illinois-based strategic consultancy noted.

“A year since COVID-19 changed the way we live, work and shop, the online grocery store has shown continued strength and impressive endurance,” said David Bishop, partner at Brick Meets Click, who specializes in the impact of digital technology on sales and food marketing focused. “The monthly active user base remains robust, the average order values ​​are at a similarly high level and the order frequency has increased.”

The Brick Meets Click / Mercatus study, conducted March 26-28, interviewed 1,811 US adults who participated in their household grocery shopping and who had made an online grocery purchase in the past 30 days.

Brick Meets Click

In March, monthly active users placed an average of 2.8 online orders, up from 2.7 orders in February and 2.5 orders in March 2020. The 12% increase in order frequency over the previous year reflects the fact that households are always Still primarily shopping physically, according to Brick Meets Click, California was the first to take home stay orders on March 19, 2020, with California doing so for the first time on March 19, 2020.

The average value for delivery and collection orders increased from $ 82 in February to $ 84 in March, and was practically unchanged from March 2020. However, March ship-to-home orders were down 6% year over year to $ 49. Brick Meets Click pointed out that average order values ​​in all segments had already increased by 16% to 18% in March 2020 compared to the prepandemic when households bought more groceries online.

In terms of order share, Ship-to-Home captured the largest proportion of orders prior to the pandemic, and in March 2020 Brick Meets Click reported. In the past year, however, this segment gave up almost 19% of the order share for delivery and collection. The latter service is the dominant way online grocery orders come in in the U.S. today, according to the consultancy.

A total of 69.3 million households placed one or more online orders in March 2021, a 7% decrease from 74.5 million last year when home stay orders and shopping restrictions first went into effect. According to Brick Meets Click, the decline reflects fewer households making ship-to-home transactions. The ship-to-home segment of the online grocery market lost 27% of its monthly users year on year, while pickup increased 12% and delivery increased 23%.

“In the past 12 months, the dramatic consumer shift to shopping for groceries online has solidified. Roadside pickup has the largest share of monthly shoppers at 53% compared to home shipping and delivery, ”said Sylvain Perrier, president and CEO of Toronto-based grocery e-commerce provider Mercatus, said in a statement.

The leading satisfaction indicator for online groceries, “Likelihood of using a particular service again,” rose to 62% in March from 58% in February and 56% in January. The gains underscore the retailers’ ability to resolve issues preoccupied online grocery shoppers in March 2020 in the wake of the pandemic, including stock shortages and a lack of capacity for order spaces, which degrade the overall experience and reduced repeat intent rates to less than 1% 43% according to Brick Meets Click.

“Pickup continues to have stronger consumer demand across all market types compared to delivery,” added Perrier. “Those brick and mortar chains that have invested in optimizing their pick-up services are likely to continue to benefit from the high repeat intent rate, as indicated in the data.”

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