Online Grocery Sales Fall 3.4% in May
Overall online grocery sales fell 3.4% year-over-year this past May, totaling $6.9 billion according to the latest monthly Brick Meets Click/Mercatus Grocery Shopping Survey.
Fielded May 30-31, the monthly survey attributed the dip in overall sales to a combination of fewer households buying groceries online during the month and a decline in the average number of orders placed by active shoppers. The overall base of monthly active users (MAUs) for online grocery contracted 5% as all three segments (Ship-to-Home, Delivery and Pickup) saw decreases from their MAU bases.
“The decline in order frequency is the result of the growing number of MAUs who placed only one eGrocery order during the month,” said David Bishop, partner at Brick Meets Click. “This accounted for one-third of all active customers and caused headwinds across all the segments.”
Pickup grocery sales recorded the only year-over-year growth and captured its largest share of sales to date, rising 9.1% and contributing 50.7% of total online grocery sales. Ship-to-Home fell 17.0% versus last year and accounted for 16.8% of sales during the month, continuing to post weaker results each year since 2020 at the height of the COVID-19 pandemic. Delivery declined 11.7% compared to last year, and its dollar share dropped nearly two points to 32.5% for the month.
The share of MAUs who used only one receiving method in May rose nearly 6 percentage points to 72%. Most formats also experienced declines in their MAU bases during May. Grocery fell nearly 2% and mass shrank by more than 5% compared to a year ago although the mass MAU base remained more than 40% larger than grocery’s.
Online’s share of total grocery spending dropped in May 2023, falling 270 basis points to 12.1% versus last year. Overall repeat intent rates declined 270 basis points in May versus last year, marking the third straight month of decreases.
"Given the decreasing number of online customers and the decline in repeat intent rates, it is imperative for regional grocers to gain a deeper understanding of their customers' evolving needs and effectively adapt," said Sylvain Perrier, president and CEO of Mercatus. "As customer expectations continue to rise, it is crucial for grocers to reassess their current service standards and ensure that the shopping experience aligns closely with these elevated expectations."