Delivery continues to fuel grocery e-commerce growth
Delivery fueled the bulk of grocery e-commerce's 27% year-over-year growth in May, according to the latest monthly report by Brick Meets Click and Mercatus.The segment's sales surged more than 70% compared to May 2024, while ship-to-home increased more than 15% and pickup fell nearly 4%.Delivery's strength helped cushion what the firms had expected would be a larger month-over-month decline in grocery e-commerce sales for May, which ended up being only 12% off from April.
Dive Insight:
Deep discounts on annual membership and subscription plans continue to power delivery's sales growth, the firms noted.
The channel has been the primary beneficiary of several membership and subscription offers over the last 12 months, spurring increased customer adoption of grocery e-commerce, Brick Meets Click and Mercatus noted.
With $3.9 billion in sales last month, the channel saw "sizable gains" in its user base, a double-digit increase in order frequency and higher average order values compared to 2024, the report noted. Delivery accounted for roughly 45% of grocery e-commerce sales in May, up nearly 13 percentage points from the year-ago period.
Ship-to-home seemed to benefit from delivery's boom, posting gains in its user base, higher order frequency and higher average order values, the report noted.
"The ability to buy products from pure-plays at prices on par with physical stores and enjoy free shipping from an expanding range of providers is likely one factor triggering higher demand" for ship-to-home, the firms noted.
Meanwhile, pickup saw a dip in sales growth driven by a drop in order frequency and slightly lower average order values, resulting in the channel's sales share shrinking 11 percentage points compared to last year to account for 37% of grocery e-commerce sales.
Totaling $8.7 billion, grocery e-commerce sales in May came in 27% higher than the same time last year but below the $9.8 billion recorded the month prior. The 12% sales dip from April to May was less severe compared to the 20% and 16% month-to-month declines recorded between the same months in 2024 and 2023, respectively, the firms noted.
Brick Meets Click and Mercatus noted that May marked the first month since August 2024 when grocery e-commerce monthly sales came in below $9.5 billion, but added that seasonal patterns can account for sales fluctuations.
"These results show how quickly shopper demand has shifted to Delivery over the last 12 months, raising the stakes for regional grocers," said Mark Fairhurst, chief growth marketing officer at Mercatus. "While collaborating with delivery platforms is often essential for grocers, the key is to ensure that these partnerships strengthen – not weaken – their connection with the customer."
The report is based on a survey of 1,488 shoppers from May 30-31.
Copyright 2025 Industry Dive. All rights reserved.
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