May e-grocery sales up almost 2% compared to 2021

Total online grocery sales finished the month of May at $7.1 billion, which is 1.7% higher compared to this time in 2021, as inflation is motivating many customers to adapt where and how they shop online for groceries.

These are the other results of the Brick Meets Click and Mercatus Grocery Shopping Survey fielded May 28-29, according to a news release:

• The pickup method captured 45% of e-grocery sales in May, rising 9% versus last year, driven largely by more than 10% growth in its monthly active user base. A mid-single digit gain in its average order value was offset by a nominal drop in order frequency.
• The delivery method, with a dollar share of 36%, climbed 5% versus the prior year, experiencing more modest gains in monthly active users and average order value compared to those of pickup and a decrease in order frequency of about 5%.
• The ship-to-home method represented 19% of e-grocery sales in May and dropped 16% versus the prior year; a more than 10% pullback in average-order value and similar rate of decline in order frequency was countered by an over 9% gain in its monthly active user base.

As price inflation erodes purchasing power, the study shows consumers are looking to finding ways to pay no more than necessary when shopping online.

For mass retailers and grocery consumers using either pickup or delivery receiving methods, the percentage who cited costs as the most important selection criteria rose 6 points, from 37% in August 2020, when customers first responded to this question, to 43% in May 2022. What’s notable: The share of mass-retailer customers who cited costs as the top consideration remained relatively unchanged over this period, while the share of grocery customers who cited costs as their top consideration jumped more than 10 percentage points.

“Less than one-quarter of online grocery customers who shop with grocery or mass [retailers] online use both pickup and delivery services, so the increased cost consideration within this group may actually drive more demand toward pickup,” Brick Meets Click Partner David Bishop said in the release.  “Interestingly, for grocery customers, the importance of ‘getting the products you want’ has dropped from the top consideration to the bottom when ranked against the elements of cost and convenience, and this holds true for both pickup and delivery services.”

Although the mass-retailer channel isn’t immune to the effects of inflation, mass did see a surge of 20% in its monthly active user base versus last year. In contrast, grocery retailers contracted by more than 10%. A similar trend played out with order frequency.

And while average order value for both grocery and mass retailers grew during the month versus May 2021, both trailed the general rate of grocery inflation, suggesting fewer items in the basket.

“Customers appreciate the convenience of ordering online, but they are also becoming more cost conscious,” Mercatus President and CEo Sylvain Perrier said in the release. “So, to defend the base business, grocers can promote pickup to address both issues. Assuming the pickup experience aligns with customer expectations, showcasing the savings associated with pickup’s lower fees, no fuel surcharges or zero tips can better protect your online customers and sales by highlighting a more affordable alternative to home delivery.”

The likelihood for an online grocery shopper to use the same service again within the next month remained unchanged at 63% in May versus the prior month and was up 10 points compared to a year ago.