E-Grocery Spending Slows in February

Brick Meets Click/Mercatus shopping survey shows declines in average order values and monthly active users

3/13/2024

Delivery order volume grew in February, due to an expansion of monthly active users, the survey found.

Cost-conscious consumers pulled back on their online grocery spend last month, according to the latest Brick Meets Click/Mercatus Shopper Survey. The total digital market for grocery came in 10.5% lower in February compared to the previous year, with sales at the $7.9 billion mark.

The slide was attributed in part to lower average order values, which were down 10% on a year-over-year (YoY) basis. Order values fell across e-commerce modes of pickup, ship-to-home and delivery. The survey found that the supermarket format experienced a 15% YoY decrease in average order values for pickup and delivery.

David Bishop, partner at Brick Meets Click, explained some of the catalysts for the change. “Convenience remains one of the primary motivations for shopping online for groceries, however, for some customers, cost considerations are now weighing more heavily on their decision on how to shop,” he said. “This means that the explicit costs associated with e-grocery services are more likely to impact how these customers grocery shop, whether that’s returning to in-store or shifting where they shop online.”

Meanwhile, the overall monthly active user (MAU) base went down in February by 30 basis points compared to last year. Within that base, more users received orders via multiple methods of pickup, delivery and ship-to-home. In addition, the lowest-income group within the MAU base shopped less frequently via pickup or delivery compared to February 2023, when pandemic-era emergency SNAP allocations were still in place.

Cost-conscious buyers across all levels continue to shop between digital channels, the survey affirmed. In February, more than 30% of households that bought groceries online from a grocery service also bought from a mass retailer’s service, continuing a cross-shopping trend that has emerged over the last several months.

The state of online grocery last month underscores the importance of targeted efforts across the omnichannel, the analysts noted. "Although regional grocers may not always be able to match the low prices offered by mass merchants like Walmart, they can capitalize on customer insights to refine their service offerings" said Mark Fairhurst, global chief growth officer at Mercatus. "By using data to understand customer behavior, regional grocers can personalize shopping experiences, offer targeted savings, and ultimately, provide value that goes beyond pricing. This strategic use of customer data is essential for regional grocers to differentiate their services and maintain customer loyalty in a highly competitive market."