Online grocery sales surged by nearly 28% in June compared to the previous year, while in-store sales declined, as reported by Brick Meets Click and Mercatus. All three methods of receiving – delivery, pickup, and ship-to-home – saw sales increases of at least 25%. Walmart and mass retailers are posing a threat to traditional grocers, with Mercatus executive Mark Fairhurst emphasizing the need for regional grocers to pay attention to the changing trends. E-grocery sales in the U.S. reached $9.8 billion last month, with a 27.6% increase, while in-store grocery sales saw a slight decline due to the rise in digital orders.
Household grocery spending rose less than 3% in the final week of June compared to the previous year, indicating a decrease in in-store grocery sales across retail formats. Supermarkets experienced a decline in market share, with Walmart and discount retailers gaining ground. One in four households ordering groceries online from supermarkets also did so from Walmart in June, showing increasing competition between the two. Delivery sales grew by 29% year-over-year, reaching $3.8 million, with a rise in monthly active users and order frequency. Pickup sales increased by 25% to $4.3 billion, and ship-to-home sales rose by 33% to $1.7 billion. Delivery and ship-to-home increased their sales share, while pickup saw a decline for the second year in a row.
Based on surveys conducted by Brick Meets Click, mass retailers maintain an advantage in delivery over traditional supermarkets. Fairhurst of Mercatus advised regional grocers to utilize customer data as a competitive edge. The increase in cross-shopping between supermarkets and Walmart highlights the importance of retaining customers across all channels.
Read more at Yahoo Finance: Grocery e-commerce sales jump nearly 30% in June