eGrocery sales reach $7.2 billion, up 6 percent versus prior year
The most recent Brick Meets Click/Mercatus Grocery Shopping Survey revealed that total online grocery sales in June climbed 6 percent year over year to $7.2 billion. For the second quarter, eGrocery posted $22.4 billion in sales, a gain of 1 percent compared to Q2 in 2021.
“Inflation and COVID-19 are creating cross-currents in the market as higher prices motivate customers to look for ways to avoid paying more than necessary, and ongoing concerns about contracting the virus motivate shoppers to use online grocery as a way to stay healthy,” said David Bishop, partner at Brick Meets Click. “This is especially true as new variants of the virus triggered surges in infection and rising illness rates during May and June.”
Pickup, the largest segment of eGrocery, performed well; its June and second quarter sales rose 3 percent respectively versus a year ago. For the second quarter of 2022, pickup contributed 45.7 percent of total eGrocery sales, up 80 basis points versus 2021.
Delivery’s monthly sales jumped over 20 percent, and it finished the quarter 6 percent higher than year-ago results. Delivery reported mixed results relative to order frequency as frequency increased during June but declined for the quarter. Delivery captured 34.2 percent of the online grocery dollar share for the second quarter, up 1.7 percent from 2021.
Ship-to-home continues a long-term decline that started at the onset of the pandemic in March 2020 when online grocery shopping began to evolve rapidly to meet new needs. Year over year, ship-to-home sales fell over 14 percent in June and by more than 10 percent for the second quarter. Ship-to-home dollar share for the quarter was 20 percent, down 2.6 percent versus last year.
“Despite the current inflationary environment, a significant number of grocery customers continue to shop using online channels,” said Sylvain Perrier, president and CEO of Mercatus. “Customers crave convenience, but they also want to find ways to save money. Encouraging customers to use lower priced pickup services is one opportunity. Elevating and showcasing private label products online is another. Also consider integrating digital coupons into your first-party web and mobile experiences.”
In terms of share of wallet, total eGrocery finished the quarter at 13.6 percent, up 1.5 percent versus last year.