November 2024 U.S. eGrocery Total $9.6 Billion, Climbing 18% Versus Year Ago

Significant growth in monthly active users across all segments set a new record high of 77.8 million households, fueling the YOY sales growth.

Barrington, Ill. – December 10, 2024 – The U.S. online grocery market ended November 2024 with $9.6 billion in monthly sales, a 17.8% increase over last year as all three fulfillment methods posted year-over-year (YOY) sales gains according to the Brick Meets Click/Mercatus Grocery Shopper Survey fielded November 29-30, 2024. The uptick in sales was predominantly powered by strong expansion of the monthly active user (MAU) base as order frequency rates inched up and overall spending per order remained unchanged versus last year.

The overall MAU base, which includes households that used any of the three fulfillment methods during November 2024, surged 15%, the second strongest YOY percentage change since August 2021. The new record of 77.8 million households that bought groceries online in November 2024 broke the previous record high set during April 2020, the first full month of the pandemic. During November, 72% of overall MAUs used only one fulfillment method, up more than 400 basis points (bps) versus 2023.

Delivery sales jumped to $3.9 billion, up 22% compared to a year ago, accounting for 40.6% of all eGrocery sales. An 8% increase in the MAU base and higher order activity led to the surge in sales, while the average order value (AOV) remained flat versus last year. Delivery results for November extend the segment’s strong growth trend that began in June 2024, fueled by the ongoing waves of deep-discounted offers on membership and subscription programs from various retailers and providers which first started appearing in May.

Pickup posted $3.9 billion in sales, an 8% YOY increase, ending the month with 41.3% of total eGrocery sales. A 9% expansion of Pickup’s MAU base drove order volume gains despite a slight contraction in order frequency. And AOV fell by about 4.5% compared to 2023 due mainly to a pullback among the youngest household group (18–29-year-olds). 

Ship-to-Home continued to reclaim lost share after bottoming out during 2022, as sales jumped to $1.7 billion in November, up more than 30% YOY to end the month with 18.1% of online sales. The MAU base for Ship-to-Home expanded at the fastest rate of all three fulfillment methods in November, increasing more than 11%. A slight increase in order frequency, combined with the rapid MAU growth, aided in generating a strong surge in order volume.  And, the nearly 12% lift in AOV suggests that other factors, like product mix, may have played a role in November’s results.

“Supermarkets experienced a significant surge in their MAU base, benefiting from widespread and deep discounts on membership and subscription programs offered by both national and regional grocers throughout November,” said David Bishop, Partner at Brick Meets Click. “And, while that’s a positive sign for Supermarkets, the race to retain customers and grow share-of-wallet with them is only intensifying among rivals.”

In contrast, the MAU base for Mass expanded by less than 1% as it lapped an extremely strong user growth in 2023, and it maintains the largest share of MAUs across the formats. Mass reported strong gains in order frequency as its MAUs (including all three methods) completed 9% more orders than last year. However, the combined AOV for Delivery and Pickup for Mass did slide slightly in November while its AOV for Ship-to-Home posted double-digit gains.

Customer satisfaction with eGrocery services climbed in November as the overall repeat intent rate reached 65.2%, the highest score in the last four years and the third highest since the onset of COVID in March 2020. The gain was driven largely by a more than five percentage point increase in the share of MAUs who have completed four or more orders with a specific service within the last three months. More than 80% of this user group indicated that they are very/extremely likely to reuse the same service within the next month compared to under 30% in the first-time user group. 

In terms of customer loyalty, Supermarkets made gains with the households that rely on them as their primary grocery store. Nearly 56% of those households that were active online in November also ordered online from their primary store, almost a 7-percentage point gain versus last year. Despite the gains for Supermarkets, households that rely on a Mass retailer as their primary grocery store are at least 30% more likely to order groceries online from Mass compared to Supermarkets.

"Driving larger orders and fostering repeat purchases requires creating a more personalized and seamless online grocery shopping experience," said Mark Fairhurst, Chief Growth Officer at Mercatus. "By offering tailored product recommendations based on customer preferences and lifestyles, alongside easy-to-use rewards programs and intuitive navigation, grocers can strengthen customer loyalty, build trust, and sustain long-term growth in the online grocery space."

For more information about November 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.

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 November 29-30, 2024, with 1,704 adults, 18 years and older, who participated in the household’s grocery shopping, and a similar survey in November 2023 (n=1,814). 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.

About Brick Meets Click
Brick Meets Click is an analytics and strategic insight firm that connects today's grocery business with tomorrow's needs. Our clear thinking and practical solutions help clients make their strategies and customer offers more compelling and relevant in the changing U.S. grocery market. We bring deep industry expertise and fact-based analysis to the challenge of finding new routes to success.

About Mercatus

Mercatus drives digital transformation for retailers through an extensive suite of connected and contextualized commerce solutions. We enhance shopper engagement, tailor experiences to individual preferences, and cultivate enduring loyalty across retail businesses of every size. Our mission is to enable retailers to captivate customers, boost sales, foster retention, and deepen loyalty in a digital world. With our cutting-edge solutions, retailers can streamline operations, enrich customer experiences, and realize substantial growth. Embark on the digital transformation journey and unleash the full potential of your retail business with Mercatus.

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