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Trendspotting: Online grocery sales reach new heights, October tops $10.5 billion

By
Craig Levitt

It was a record month for online grocery sales. October totaled $10.5 billion in monthly sales, an increase of 27.9 percent compared to last year according to the most recent Brick Meets Click/Mercatus Grocery Shopper Survey. October was also the second straight month in which year-over-year eGrocery sales gains exceeded 20 percent.

Delivery experienced another strong month with YOY sales climbing 46 percent to $4.8 billion, a record-setting high for the segment. The monthly average user (MAU) base for delivery expanded much faster than for either pickup or ship-to-home, growing 16 percent versus 2023 with most of the gains coming from households between the ages of 30 and 60. Combined with increased order frequency, this user base growth drove delivery’s order volume up 24 percent versus October 2023 and widened delivery’s order share lead over pickup for the second consecutive year in large metro areas, which represent roughly 60 percent of U.S. households. In addition, delivery’s average order value (AOV) climbed by over 15 percent, partly due to a growing share of customers who use the services more frequently and tend to spend more as their usage increases.

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.”

Craig Levitt

Craig Levitt

About Craig Levitt  |  email

When his dreams of becoming a professional hockey player came crashing down due to lack of talent, Craig Levitt turned to journalism. He graduated from Hofstra University in 1992 and has covered various areas of the retail food trade since 1996. Craig joined The Produce News in 2017 and is now managing editor. In his spare time, Craig still plays men’s league hockey (poorly) and enjoys walking the aisles of his favorite supermarket with his wife and two daughters.

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