E-Comm Sales Fall in November
Consumers’ return to the everyday errand of grocery shopping and current deal-seeking behavior have been affirmed in new data showing that e-commerce sales for the grocery sector were down 10% in November from a year ago. Online sales softened at twice the rate of total grocery spending, which was down 5% compared to 2021.
The latest Brick Meets Click/Mercatus Shopping Survey also revealed that the e-comm audience base has contracted somewhat. The total number of households ordering groceries online for delivery, pickup or ship-to-home fulfillment declined 7% on a year-over-year (YoY) basis.
[Read more: "Navigating E-Commerce in the New Year"]
According to the report's authors, the decrease can be attributed to lower order frequency, a dip in households that shop digitally and reined-in spending among regular users. There was a particularly steep reduction in the 60-plus age demographic and a significant decrease among the core customer segment of those aged 30 to 44.
That said, e-grocery sales topped $7.7 in November, a busy month for grocers due to the Thanksgiving holiday and the beginning of holiday celebrations. The mass market channel seems to be coming out of more of a winner in the inflation-defined omnichannel, as order frequency rose 8% among monthly active users (MAUs) in the mass channel and slid 11% among grocery MAUs. Additionally, the cross-shopping rate between grocery and mass went up 6% on a YoY basis.
The tentacles of inflation reached into the digital marketplace in November. The Brick Meets Click/Mercatus survey found that cost was the top influence in the choice of where people shopped online in November.
“When it comes to shopping online – especially for delivery or pickup – cost considerations include more than the price paid for a basket of products,” said David Bishop, partner at Brick Meets Click. “Many customers also evaluate the total cost associated with using the service, which can include special charges, standard fees, and tips. And, when comparing the total of these costs to the customer, there’s a sizable gap in favor of mass versus grocery.”
Sylvain Perrier, president and CEO at Mercatus, suggested that grocers consider a tiered fee structure for price-conscious digital shoppers. “We know that if offered the choice between shorter cycle times and lower fees, a significant share of online customers will select a time later that day or even the next day to save at least a couple of dollars,” Perrier noted.
