Brick Meets Click has found that more people in the US are using eGrocery shopping despite the evolving cost pressures.
In the analytics firm’s latest survey, it found that the US online grocery industry experienced “robust growth” in the third quarter of 2024. Total sales rose by nearly 14% to a whopping $27.4 billion, compared to $24.0 billion for the same period in 2023.
Delivery showed a 25% increase
Researchers looked at three delivery options: same-day or next-day delivery, ship-to-home, and pickup.
Delivery through first- and third-party providers increased sales growth by a quarter (25%). Ship-to-home has also seen a growth of 15%, while pickup rose by about 5%.
Mass retailers grow with eGrocery deliveries
Mass stores like Walmart continue to grow their grocery delivery offering, especially with same-day and next-day delivery, as well as ship-to-home.
Researchers attribute this mainly to supermarkets “wrestling with ongoing declines.”
David Bishop, partner at Brick Meets Click, says the solid third-quarter results for eGrocery underscores the importance of strong customer value and evolving customer expectations associated with shopping online for groceries.
“Mass (Walmart in particular) has demonstrated the value of better understanding online shoppers’ preferences while also leveraging its vast store network and digital reach to grow faster than the overall market.”
Promising: Grocery spending increases
The share of the overall grocery spending is continuing to grow in an upward trend, now at 14.6%.
Researchers have found that there is a gap between customers intending to order again, and those who do. There is still ongoing financial pressure that is likely motivating many households to continue using mass retailers.
“Another causal factor may be related to the first-party delivery experience offered by mass retailers like Walmart,” notes the report.
If supermarkets want to compete effectively against giants like Walmart, Mark Fairhurst, chief growth officer at Mercatus advises they must “deepen their customer connections and enhance their service.”
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
