The July Brick Meets Click/Mercatus Grocery Shopping Survey is out, reporting that ” the U.S. online grocery market posted $7.2 billion in total sales, down 7.0% compared to last year … This month’s downtrend was seen across all three receiving methods and was driven by a pullback in order frequency plus constrained spending per order, despite a larger base of monthly active users (MAUs) than the prior year.”
The report goes on:
“For July 2023, the overall MAU base continued to grow as the total number of U.S. HHs that bought groceries online increased nearly 5% versus last year. This growth was driven by a more than 7% increase in the Pickup MAU base, while Ship-to-Home’s base remained flat and Delivery’s contracted 1% compared to July 2022.
“Order frequency, which dropped 10% versus last year, was the main contributor to the monthly sales decline, reducing the total number of online orders by nearly 6% for July 2023. Delivery, which plummeted 13% versus the prior year, accounted for almost three-quarters of the drop in online orders, while Pickup dipped by 3% and Ship-to-Home by 2%.
“Constrained spending in July was the other major factor impacting overall sales results. The average order value (AOV) slipped approximately 1.5% versus July 2022. Delivery climbed less than one-half a percent, and Ship-to-Home, with the smallest AOV, posted a 1% gain year-over-year; however, neither of these gains was large enough to significantly offset the 2% dip in Pickup’s AOV.”
Brick Meets Click also reports that “the share of sales shifted versus last year. Pickup and Ship-to-Home expanded, while Delivery contracted. Pickup finished the month with a 45% share of eGrocery sales, up more than one point compared to July 2022 as its sales slipped 4.5%. Ship-to-Home gained over one share point in July, ending with a 19% sales share and a 1.0% dip in sales. And Delivery ceded nearly 2 and one-half points, completing the month with just under a 36% share as its sales fell 12.8%.
“The Mass and Grocery formats continue to perform very differently. Mass experienced a surge in customers while Grocery experienced only a modest gain in MAUs during July, similar to the trend observed last month. Order frequency also declined for both formats, although the drop for Grocery was much greater than for Mass. In addition, the average order value for Grocery dipped by more than 5% while Mass finished up very slightly.”
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