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Editor's Note: Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. Check out our Sector Pro Product Consumables Pro. |
Online grocery sales fell 3.8% YOY in April, improving from the 6.5% decline in March. The total order volume fell 5.8% according to Brick Meets Click/Mercatus.
Ship to home sales decreased 3% with average order volumes down 6% while average order value increased 3%. Delivery sales accounted for half the decline in online sales.
Delivery average order value increased 6% to $84, but order volumes fell 11% with MAUs down 9%. Grocery delivery is a more expensive option and consumers may be looking to offset some of the price increases.
Pickup sales decreased less than 3% with a slight decrease in average order value to $81, but a 2% drop in order volume.
For grocery stores, online orders (pickup and delivery) represented 9.6% of sales, down from 9.9% last year.
Inflation is now a larger concern than COVID-19, so further declines in digital grocery sales are expected. That will make it even more difficult to justify the investments in the low-margin offering.
