Discounts Fuel Higher E-Grocery Sales in December
Perhaps not surprisingly in a hectic month when people are accustomed to buying holiday gifts and supplies online, new data shows that e-grocery sales rose 19% on a year-over-year basis in December.
According to the latest Brick Meets Click/Mercatus Grocery Shopper Survey, e-comm sales in this sector hit $9.6 billion in the final month of the calendar year. All three fulfillment models – pickup, delivery and ship-to-home – experienced sales lifts during that period. Delivery sales rose 24.6%, comprising 41.7% of all e-grocery sales. Pickup sales increased 5.3% compared to last year, and ship-to-home orders reversed previous trends and spiked nearly 40% in that 12-month window.
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Analysts at Brick Meets Click and Mercatus dug into the data from the entire 2024 year to determine some reasons for the positive performance. For example, the joint research indicates that overall e-comm sales in grocery were flat during the first half of the year but picked up steam in the second half, climbing by 17.7% over the last six months. The shift was attributed in large part to retailers’ launch of discounted promotions on subscriptions and membership programs; many of those incentives were launched midyear by a range of players, including regional grocers, mass retailers and marketplace providers.
“While subscriptions and memberships aren’t new, the deep discounts were new, and they resonated with customers by offering the opportunity for significant savings,” said David Bishop, partner at Brick Meets Click. “As a result, customers are more vested in their provider-of-choice, motivating many to place more orders which helps those providers to gain a larger share of the grocery wallet and improve engagement and retention rates.”
The deals also reflect intense competition in the omnichannel, as grocers work to fend off mass retailers. According to the survey, more than half of all monthly active users completed one or more online grocery order with a mass retailer in December. In addition, the data reveals that repeat intent rates for delivery and pickup service are stronger in the mass sector.
"Regional grocers looking to boost e-grocery sales should focus on delivering real savings and targeted loyalty perks,” observed Mark Fairhurst, chief growth marketing officer at Mercatus. “By leveraging AI-driven personalization and integrated loyalty solutions, grocers can convert occasional shoppers into loyal digital customers, driving repeat orders and larger baskets across both online and in-store channels, to fuel sustained growth.”
