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Online grocery sales are up +6% year over year as consumer price sensitivity and lingering COVID concerns take hold

Consumers still use pickup (including orders received by customers inside or outside a store or at a designated location/locker) as their primary method of buying groceries online, sales of the segment increasing by 3% on Jun 22 compared to 2020. a year ago.

Pickup, which represents the largest segment of the total online grocery market, contributed 45.7% of total online grocery sales in the second quarter of 2022, up 80 basis points from the second quarter of 2021, according to the survey.

Delivery (e.g. Instacart, Shipt), the second largest segment, saw the largest increase in monthly sales, up 20% in June 2022 from May 2022 and 6% from a year ago. a year, which Brick Meets Click/Mercatus attributes to a new suite of service options and features that expanded the segment’s total addressable market and increased its monthly active user base. Delivery captured 34.2% of online grocery market share in Q2 2022, up 1.7% from Q2 2021.

The likelihood that an online grocery shopper will use the same service again within the next month remained stable at 63% last month, and the rate of repeat purchase intention increased by 7% compared to the same period a year ago.

Finally, ship-to-home (includes orders received via common or contract carriers like FedEx, UPS, USPS, etc.) continued its long-term decline, which began at the onset of the pandemic when buyers turned to other modes of transport. online grocery store. Door-to-door sales were down 14% in June 2022 compared to the same period last year and more than 10% in Q2 2022 compared to Q1 2021, lowering its online grocery dollar share by -2.6% to 20.6%.

In terms of wallet share, groceries purchased through online channels accounted for 13.6% of total grocery purchases last month, up 1.5% from June 2021.

“Inflation and COVID are creating cross-currents in the market”

Despite positive gains for the two largest online grocery segments, consumer price sensitivity is at an all-time high and fears of contracting new variants of the coronavirus are looming and impacting in-store purchases , noted David Bishop, partner of Brick Meets Click .

“Inflation and COVID are creating cross-currents in the market, as higher prices motivate customers to look for ways to avoid paying more than necessary, and lingering concerns about the virus contracting motivate buyers to use online grocery shopping as a way to stay healthy”,said the bishop.

“This is especially true as new variants of the virus triggered outbreaks of infection and increased disease rates in May and June.”

To address these growing consumer concerns, Sylvain Perrier, president of Mercatus, suggests offering consumers convenient and economical options when shopping for groceries online.

“Customers are looking for convenience, but they also want to find ways to save money. Encouraging customers to use low-cost pick-up services is an opportunity. Elevating and showcasing private label products online is another. Also consider integrating digital coupons into your first-party web and mobile experiences. said Perrier.