Editor's Note: Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel BiolsiCheck out our Sector Pro Product Consumables Pro

Online Grocery Sales Slip - 5 10 2022 8 35 40 AM

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.

Online Grocery Sales Slip - hyt