Pickup also had a strong month, finishing October at $4.2 billion, up nearly 20 percent versus last year, even without the same level of promotional support. The number of pickup orders completed during October climbed 6 percent with most of the volume growth being driven by higher order frequency as opposed to household penetration. Pickup’s MAU base expanded by less than 1 percent as a contraction in the 45-60 age group compared to last year offset growth in other age groups. Pickup’s AOV increased by almost 13 percent, propelled by strong gains generated by mass retailers and favorable shifts in order frequency similar to delivery.
Ship-to-Home sales totaled $1.5 billion for October, up 6 percent versus 2023, with YOY gains aided by a larger customer base and higher AOVs. The ship-to-home MAU base grew just under 3 percent during the month driven by strong demand growth in the youngest (18-29 years old) and oldest (60-plus years old) households while its reach into the two middle age groups fell versus last year. Order volume declined 5 percent as MAUs completed fewer orders during October versus last year. Ship-to-home’s AOV was up almost 12 percent aided by strong results from Amazon’s pure-play segments, the largest sales contributor of the method, which posted a nearly 16 percent increase versus 2023.
The overall MAU base for eGrocery grew by 1.6 percent year over year as 54 percent of U.S. households completed at least one online grocery order during the month via Delivery, Pickup or Ship-to-Home. At the same time, the total pool of households that has ever shopped online for groceries expanded by just 0.6 percent in October, representing nearly 79 percent of U.S. households. The gap in expansion rates reveals that most of the MAU growth in October was the result of reactivating light or lapsed users.
“Delivery is riding its next growth curve, fueled not simply by subscriptions or membership offers, but by promotional pitches that incent the customer to commit for a year,” said David Bishop, partner at Brick Meets Click. “While firms occasionally revert to their standard ‘free trial’ offers, the surge of new discount tactics seem to have a broader appeal that extends beyond the existing customers of the retailer or provider offering it.”