Grocery Delivery Sees Gains in August

Americans ordered more groceries through delivery and third-party services in the month of August, an increase from July.

First covered by Store Brands’ sister publication Progressive Grocer, a new report from industry insights firm Incisiv and digital commerce provider Wynshop showed the share of third-party grocery delivery sales also saw a lift in August, rebounding by 21.2%. 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 represented 51.7% of digital grocery sales in August, though third-party platforms' share of overall digital grocery sales increased in August.

In August, digital order size also rose. Average digital basket size for August was $80, 38% larger than the overall average grocery basket size, which stands at $58. Additionally, the 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.”