Top Line

Total online grocery sales finished the month of May at $7.1 billion,1.7% higher versus a year ago, as inflation is motivating many customersto adapt where and how they shop online for groceries, according to the Brick Meets Click/Mercatus Grocery Shopping Survey fielded May 28-29, 2022 .Beneath the top-line results, it’s evident that as price inflationerodes purchasing power customers are increasingly focused on findingways to pay no more than necessary when shopping online.

“Less than one-quarter of online grocery customers who shop with Grocery or Mass online use both Pickup and Delivery services, so the increased cost consideration within this group may actually drive more demand toward Pickup,” said David Bishop, partner at Brick Meets Click. “Interestingly, for Grocery customers, the importance of ‘getting the products you want’ has dropped from the top consideration to the bottom when ranked against the elements of cost and convenience, and this holds true for both Pickup and Delivery services.”

Key Findings & Insights

Mixed results across formats and services reveal how inflation is impacting online grocery buying behaviors.

• Pickup captured 45% of eGrocery sales during the month, rising 9% versus last year, driven largely by more than 10% growth in its monthly active user (MAU) base. A mid-single digit gain in its average order value (AOV) was offset by a nominal drop in order frequency.
• Delivery , with a dollar share of 36%, climbed 5% versus the prior year, experiencing more modest gains in MAUs and AOV compared to those of Pickup and a decrease in order frequency of approximately 5%.
• Ship-to-Home represented 19% of eGrocery sales in May and dropped 16% versus the prior year; a more than 10% pullback in AOV and similar rate of decline in order frequency was countered by an over a 9% gain in its MAU base.

As price inflation erodes purchasing power, online grocery customers are increasingly focused on finding ways to pay no more than necessary, especially in Grocery.

• The share of Mass customers who cited costs as the top consideration remained relatively unchanged since August 2020, when we first asked customers this question..
• In contrast, the share of Grocery customers that cited costs as their top consideration has jumped more than 10 percentage points during that period.

Differences between Mass and Grocery channels

Monthly Active Users (MAU)

• Mass saw a surge of 20% in its MAU base versus last year.
• In contrast, Grocery's MAU contracted by more than 10%.

Order frequency showed a similar trend.

• Customers buying online from Mass placed nearly 2% more orders on average in May versus the prior year.
• In contrast, Grocery experienced a 5% pullback in order frequency.

Average Order Value (AOV) - Larger spend but probably fewer products

• AOVs for both Grocery and Mass grew during the month versus May 2021.
• The gains, however, trailed the general rate of grocery inflation, suggesting fewer items in the basket.

Cross-shopping between Grocery and Mass reached new high.

• The share of Grocery’s MAU base that also shopped online with Mass for groceries during the month set a new record at 33%, nearly 4 percentage points higher than the previous high-water mark from December 2021.
• Even though this elevated rate may be temporary, Grocers are still at a risk of losing customers to Mass.

Repeat intent: Overall level higher vs year ago & Mass regains top spot.

• The likelihood for an online grocery shopper to use the same service again within the next month remained unchanged at 63% in May versus the prior month and was up 10 points compared to a year ago.
• Analyzing month-over-month results showed that while Grocery narrowed the gap slightly in May, Mass still enjoyed an 8-point advantage over Grocery relative to repeat intent rates

Sponsor Message & Appreciation

“Customers appreciate the convenience of ordering online, but they are also becoming more cost conscious,” said Sylvain Perrier, president and CEO, Mercatus. “So, to defend the base business, Grocers can promote pickup to address both issues. Assuming the pickup experience aligns with customer expectations, showcasing the savings associated with pickup’s lower fees, no fuel surcharges, or zero tips can better protect your online customers and sales by highlighting a more affordable alternative to home delivery.”

We thank the team at Mercatus for their continued generous support of this research. Click here to see the June 13, 2022 press release .

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About this Consumer Research

The Brick Meets Click/Mercatus Grocery Shopping Survey is an ongoing independent research initiative created and conducted by Brick Meets Click and sponsored by Mercatus.

Brick Meets Click conducted the survey on May 28-29, 2022,with 1,802 adults, 18 years and older, who participated in the household’s grocery shopping. This research is scheduled to run monthly through 2022; then the cadence will be reevaluated to best suit the industry’s needs.The three receiving methods for online grocery orders are defined as follows:

• Ship-to-Home includes orders that are received via common or contract carriers like FedEx, UPS, USPS, etc.
• Delivery includes orders received from a first- or third-party provider like Instacart, Shipt or the retailer's own employees.
• Pickup (aka curbside) includes orders that are received by customers either inside or outside a store or at a designated location/locker.

Results were adjusted based on internet usage among U.S. adults to account for the non-response bias associated with online surveys. Responses are geographically representative of the U.S. and weighted by age to reflect the national population of adults, 18 years and older, according to the U.S. Census Bureau.

Brick Meets Click used a similar methodology for each of the surveys conducted in 2022 - Apr. 28-29 (n= 1,746), Mar. 28-29 (n= 1,681), Feb. 26-27 (n=1,790),and Jan. 29-30 (n=1,793); in 2021 – Dec. 29-30 (n = 1,836), Nov. 29-30 (n=1,785), Oct. 29-30 (n=1,751), Sept. 28-29 (n=1,728), Aug. 29-30 (n=1,806), July 29-30 (n=1,892), June 27-28 (n=1,789), May 28-30 (n=1,872), Apr. 26-28 (n=1,941), Mar. 26-28 (n=1,811), Feb. 26-28 (n= 1,812), and Jan. 28-31 (n=1,776); in 2020 – Nov. 11-14 (n=2,067), Aug. 24-26 (n=1,817), Jun. 24-25 (n=1,781), May 20-22 (n=1,724), Apr. 22-24 (n= 1,651), and Mar. 23-25 (n=1,601); and in 2019 – Aug. 22-24 (n = 2,485).