Online grocery sales in the US had a tough year in 2023, though pickup proved to be a bright spot, according to a report from Brick Meets Click and Mercatus.
E-commerce grocery brought in $95.8 million in sales, down 1.2% year over year, according to the report. The grocery segment’s performance in 2023 struggled as inflated food prices “chipped away at household purchasing power,” Brick Meets Click partner David Bishop said in a statement, echoing sentiments he shared with Retail Brew in August.
A 6% dip in monthly order frequency was the largest factor driving the sales decline. The 6% drop in 2023 followed a 4% decline in 2022. Monthly active users (MAUs) as a whole jumped 2%, though the number of MAUs who made just a single online grocery purchase per month rose to 34%.
Still, average order volumes saw a year-over-year boost across all three methods of grocery e-commerce—delivery (3%), pickup (2.6%), and ship-to-home (1.7%). More customers used one method exclusively last year, and 70% identified as single-method users.
Pickup was the most popular of the three methods in 2023, with 46% share, up from 45% in 2021. Sales for pickup in 2023 held steady from the prior year, at $44.1 billion. Delivery sales dropped 0.9% to $35.4 billion in 2023, but still increased share to 37%. Ship-to-home sales ($16.3 billion) continued to slide, down 4.9% year over year to a share of 17%.
Mass appeal: Mass and discount retailers posted stronger performances in 2023, with MAUs up 15% and 12% year over year respectively, while traditional supermarkets saw a 4% slip in MAUs. To compete, Mark Fairhurst, Mercatus’s global chief growth officer, said regional grocers should focus on “improving customer engagement, offering tailored personalization, and building loyalty.”