Delivery, Pickup, and Ship-to-Home Services All See Significant Increases as Customer Loyalty and Active User Base Reach New Heights
The U.S. online grocery market reached a significant milestone in November 2024, reporting $9.6 billion in monthly sales, marking a 17.8% increase over the previous year.
This surge in sales was fueled by an expansion in the number of active users and a steady rate of order frequency.
According to the latest Brick Meets Click/Mercatus Grocery Shopper Survey, conducted between November 29 and 30, 2024, all three online grocery fulfillment methods, delivery, pickup, and ship-to-home, saw year-over-year (YOY) sales growth.
The active user base for online groceries, which includes households using any of the three fulfillment methods, surged by 15% compared to November 2023, setting a new record of 77.8 million households.
This represents the second strongest year-over-year growth since August 2021, surpassing the previous high from April 2020, the first full month of the pandemic. A notable shift in user behavior was seen as 72% of these active users (MAUs) chose only one fulfillment method, a 4% increase from the previous year.
Delivery services, which accounted for 40.6% of all eGrocery sales, saw a robust 22% growth, bringing in $3.9 billion in November. The increase was largely driven by a 9% growth in the number of active users and higher order activity, even though the average order value (AOV) remained unchanged compared to last year.
This surge continued a trend that started in June 2024, driven by aggressive discounts on memberships and subscription programs offered by various retailers.
Similarly, pickup services also posted strong performance, generating $3.9 billion in sales, an 8% increase from the previous year, and accounting for 41.3% of the total eGrocery sales.
The growth in pickup services was primarily due to a 9% expansion in its active user base, though there was a slight dip in order frequency. However, the AOV for pickup dropped by about 4.5%, particularly due to reduced spending among younger shoppers aged 18–29.
Meanwhile, the ship-to-home segment experienced an impressive recovery, with sales rising to $1.7 billion, an increase of more than 30% from November 2023. This segment’s growth was bolstered by an 11% expansion in the number of active users, the highest among the three fulfillment methods.
Additionally, the AOV for ship-to-home orders rose by nearly 12%, possibly due to shifts in the product mix. As stated in the report, this marked a successful rebound for ship-to-home, which had faced significant declines in 2022.
In terms of customer satisfaction, the November survey revealed an increase in loyalty, with the overall repeat intent rate climbing to 65.2%, the highest recorded in the last four years.
This uptick reflects a greater share of active users completing four or more orders within the last three months, with more than 80% of this group indicating they were very likely to reuse the same service within the next month. In contrast, first-time users showed much lower levels of repeat intent, below 30%.
Supermarkets, benefiting from deep discounts on memberships and subscription offers, saw significant growth in their customer base. Nearly 56% of households that actively shopped online in November also made purchases from their primary grocery store online, marking a nearly 7% increase compared to the previous year.
However, despite these gains, Mass retailers, those that offer products in a variety of categories, maintained a larger share of online grocery shoppers, with their active user base expanding by less than 1% compared to 2023.
Customer loyalty remains a key challenge in the competitive online grocery market. Supermarkets are increasingly focused on retaining customers by offering personalized shopping experiences, leveraging tailored product recommendations, and implementing rewards programs.
Mark Fairhurst, Chief Growth Officer at Mercatus, emphasized the importance of creating a seamless online experience to boost repeat purchases and foster long-term loyalty.
For more insights and details on the November 2024 survey results, the full Brick Meets Click eGrocery Dashboard report is available for subscribers.
The data for this survey was collected by Brick Meets Click, an analytics and strategic insight firm, and sponsored by Mercatus.
The survey included responses from 1,704 adults who participated in grocery shopping, with adjustments made to reflect the national population’s internet usage and demographic factors.
The three fulfillment methods for online grocery orders are defined as delivery, pickup, and ship-to-home, with each service receiving orders via various methods such as third-party providers, in-store pickup, or direct shipping through carriers like FedEx and UPS.
