Delivery Scores a Comeback in E-Grocery Channel
If grocery orders are on the move, so are methods of fulfillment. According to the latest e-grocery report from Brick Meets Click and Mercatus, there has been a shift in the way shoppers receive digital orders, with the delivery mode rebounding.
The new data shows that delivery sales rose 25% during the third quarter of 2024 on a year-over-year (YoY) basis. That is a reversal from the prior year, when delivery sales dropped 6%.
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Meanwhile, pickup sales edged up 5% YoY during the quarter, a slower pace than the third quarter of 2023. In another signal that consumers appreciate the convenience of having groceries at their doorstep, ship-to-home orders climbed 15% in that time frame.
Total e-grocery sales reached $27.4 billion in the three-month period, up 13.8% versus the previous year. The share of total online grocery spending hit 14.6% during Q3, moving in a positive direction compared to dips in 2023. Brick Meets Click/Mercatus researchers attributed the lift to the strength in delivery, which came as delivery service providers have been heavily promoting their membership or subscription programs.
Delivery and ship-to-home methods are proving to be especially popular options at mass retailers, the report noted. Those services helped drive e-grocery sales gains in the mass channel, while some traditional grocers continue to experience digital declines.
“The strong 3Q24 results for e-grocery underscore the importance of strengthening the customer value proposition to align better with the evolving expectations associated with shopping online for groceries,” remarked David Bishop, partner at Brick Meets Click. “Mass, and Walmart in particular, have demonstrated the value of better understanding online shoppers’ preferences while also leveraging its vast store network and digital reach to grow faster than the overall market.”
Mark Fairhurst, chief growth officer at Mercatus, also underscored the competitive climate in e-grocery. “To compete effectively against giants like Walmart, supermarkets must deepen their customer connections and enhance their service,” he said. “Leveraging customer insights is crucial for creating personalized experiences and offering targeted savings to customers – but that's only possible when retailers can effectively operationalize the data."
