Online grocery sales accounted for 12.5% of total weekly grocery spending in the last week of the month, up 90 basis points year over year. / Photo provided by: Shutterstock
U.S. online grocery sales reached $8.2 billion in October, up 5% from a year earlier, according to the monthly Brick Meets Click/Mercatus Grocery Shopping Survey released Monday.
Although total order volumes slowed during the month, the decline was offset by higher average order values and longer delivery times, the report noted. Meanwhile, mass retailers continued to see increases in their monthly active user base, average order value, and order frequency compared to October 2022.
Shoppers increased their purchases for pickup and delivery by 6% and 2%, respectively, in October compared to a year ago, but the delivery-to-home method decreased by 6%.
The mass retailer’s monthly active user (MAU) base grew 29% year over year, indicating a flight to value in shopping behavior seen in the past few months, the report said.
Grocery stores also saw a 6% year-over-year increase in MAUs in October, with people 60 and older contributing the most to this trend.
“Mass formats, particularly Walmart, continue to attract a significant share of MAUs as American households look for ways to save money,” David Bishop, partner at Brick Meets Click, said in a statement. “The share of MAUs from bulk purchases increased by over 11 percentage points from last year and ended October of this year at over 50%.”
Total e-grocery orders decreased by about 3%, due to a decline in home delivery orders and a drop in pickup orders, according to the report.
Spend per order increased nearly 9% year-over-year in top-line average order value, with delivery AOV increasing 10%, pickup 6%, and home shipping 5%.
The percentage of shoppers who purchased groceries both online and in stores hit an all-time high of more than 34%, jumping 680 basis points over the month.
In October, overall repeat intent among online grocery shoppers rose 390 basis points year over year to 62%, with mass retailers increasing their lead by 220 basis points and leading grocery stores by nearly 10 points. did.
“Today’s local grocers are focused on improving the operational aspects of their online grocery services, but due to economic and competitive pressures, “We continue to face severe headwinds.” “To alleviate these challenges, grocers are increasing their online efforts by highlighting private label products, increasing personalization efforts, and offering unique offers and promotions, including product sampling. We need to identify ways to differentiate the shopping experience.”
In the segment’s performance, pickups outperformed deliveries, but sales declined by 130 basis points to 42.7%. By comparison, pickup sales share increased 260 basis points to 40%. On the other hand, courier services decreased by 140 basis points to 17.3% compared to the same period last year.
Online grocery sales accounted for 12.5% of total weekly grocery spending in the last week of the month, up 90 basis points year over year. The combined share of pickup and delivery was 10.3%, an increase of 90 basis points compared to the same period in 2022.