Grocery Delivery, 3rd-Party Sales See Lift in August
Digital grocery trends have been shifting throughout the summer, and delivery came out on top in August, according to a new report from industry insights firm Incisiv and digital commerce provider Wynshop. The share of third-party grocery delivery sales also saw a lift in August, rebounding by 21.2%.
The report is part of Incisiv and Wynshop’s Grocery Doppio platform, a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate and sustain digital growth.
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The “State of Digital Grocery Performance Scorecard” for August 2022 also found that digital grocery sales for the month represented 13.6% of total grocery sales, up from 12.9% in July. Pickup at stores, meanwhile, lost 2.6% from July to August, while the share of delivery increased and now represents 48.3% of all digital grocery fulfillment.
Pickup is still king, representing 51.7% of digital grocery sales, though third-party platforms' share of overall digital grocery sales increased in August.
Digital order size also rose in August, with shoppers increasing the items in their basket by one, after already adding two in July. Average digital basket size for August is now $80, which is 38% larger than the overall average grocery basket size, which stands at $58.
“Overall digital sales and digital basket sizes continue to grow post-pandemic,” said Charlie Kaplan, chief strategy officer of Miami-based Wynshop. “If we continue to see this kind of percent increase from month to month, we could be looking at a 20% digital grocery market share within the next couple of years.”
Additionally, average price per item in a digital basket increased by $0.10 in August.
“After initially reducing their spending in response to inflation, grocery shoppers seem to have regained a measure of confidence, and are now spending more on groceries, and even on delivery, than they were a month ago,” said Gaurav Pant, chief insights officer of both Incisv and Grocery Doppio. “Even though inflation is still high (8.3%), we expect this level of spending to continue, as we continue to keep an eye on consumer credit levels to understand if that will dampen growth.”
