October 2024 U.S. eGrocery Sales Jump 28% Versus Year Ago to $10.5 Billion

Market Overview

October 2024 experienced a significant surge in U.S. eGrocery monthly sales, reaching $10.5 billion—an impressive 28% year-over-year increase that signals a robust shift in consumer shopping behaviors.

For eCommerce and grocery professionals, understanding the driving forces behind this growth is crucial to maintaining a competitive edge.

Record-breaking Sales and Market Dynamics

Based on the findings of the most recent Brick Meets Click/Mercatus Grocery Shopper Survey, all three eGrocery fulfillment methods—Delivery, Pickup, and Ship-to-Home—posted solid year-over-year growth for the second consecutive month.

• Delivery led the surge with a 46% increase in sales, totaling $4.8 billion, the highest on record. This surge was driven by a 16% rise in monthly active users (MAUs) among households aged 30-60 and a 24% boost in order volume compared to October 2023. Enhanced promotions and subscription offers played a pivotal role in this expansion.
• Pickup services also showed strength, climbing nearly 20% to reach $4.2 billion. Unlike Delivery, Pickup’s growth stemmed mainly from increased order frequency, as the MAU base expanded by less than 1%. Interestingly, this growth was not heavily influenced by promotional activity, indicating a steady user base relying on convenience.
• Ship-to-Home, while showing modest growth, up 6% YOY to $1.5 billion, benefited from higher average order values (AOVs) and increased participation from both younger (18-29) and older (60+) households. However, this segment faced a 5% decline in order volume, offset by strong performance in AOV of Amazon’s pure-play segments.

Impact of Delivery Promotions Continues

Since mid-May 2024, the market has seen a rise in aggressive discount strategies by major retailers and third-party providers. The discounts for annual subscriptions ranged from 20% at Kroger to 80% off at Instacart with Walmart+ right in the middle at 50%. These promotions have proven effective in expanding the MAU base and encouraging repeat use. Additionally, newer entrants like DoorDash and Uber leveraged 30-day trials to capture interest, while Amazon recently extended its free trial period to 90 days.

“Delivery is riding its next growth curve, fueled not simply by subscriptions or membership offers, but by promotional pitches that incent the customer to commit for a year,” noted David Bishop of Brick Meets Click. Such tactics have reshaped consumer behavior and prompted competitive adaptations among smaller and regional grocers.

Competitive Insights for Regional Grocers

A spike in cross-shopping behaviors presents a challenge for regional players. The percentage of households ordering online from grocery formats that also shopped for eGrocery at mass-market providers jumped by five points, hitting 40% in October.

Additionally, the gap in repeat intent scores between the Grocery and Mass formats widened significantly during October, particularly for Pickup services. For Delivery services, the gap held steady and remains large with Mass having a 20-point lead over Grocery.

Strategic Takeaways

Mark Fairhurst, Chief Growth Officer at Mercatus, advised that regional grocers can enhance their standing by focusing on loyalty programs and tailored digital campaigns.

"As national giants like Walmart accelerate growth with aggressive membership offers, there are effective ways for regional grocers to adapt and better connect with their core customers," noted Fairhurst. "By improving loyalty programs and enhancing the relevance of digital initiatives to leverage targeted and personalized campaigns that integrate online and offline promotions, regional grocers can seize new opportunities to strengthen their position in a competitive market."

Final Thoughts

These October 2024 findings and insights underscore the need for eCommerce and Grocery retail professionals to remain agile and stay informed on these market shifts. Delivery services are booming due to intensifying competition and promotional strategies, while Pickup is holding steady as a reliable fulfillment option for many.

By understanding these trends and adapting accordingly, grocers and their suppliers can navigate the increasingly competitive landscape and capture their share of this growth.

About this consumer research‍

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

Brick Meets Click conducted the most recent survey on October 30-31, 2024, with 1,847 adults, 18 years and older, who participated in the household’s grocery shopping, and a similar survey in October 2023 (n=1,790). Results are 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.

The three receiving methods for online grocery orders are defined as follows:

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

For more information about Oct. 2024 results, check out the latest Brick Meets Click eGrocery Dashboard or visit the eGrocery Monthly Sales report page for information about subscribing to the full monthly report.