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Yahoo
16-07-2025
- Business
- Yahoo
Grocery e-commerce sales jump nearly 30% in June
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Online grocery sales jumped nearly 28% in June compared to the year prior, while in-store sales slipped, according to Brick Meets Click and Mercatus' latest monthly report. All three receiving methods — delivery, pickup and ship-to-home — reported sales gains of at least 25%. Walmart and mass retailers as a whole continue to threaten traditional grocers, with Mercatus executive Mark Fairhurst stating that June's results 'should be a wake-up call' to regional grocers. While U.S. e-grocery sales increased 27.6% last month to $9.8 billion, in-store grocery sales fell slightly due to the combined impact of the surge of digital orders and consumers shifting where they primarily purchase groceries, according to the report. Overall grocery spending per household rose less than 3% during the final week of June 2025 compared to the same period the year prior, indicating that in-store grocery sales across retail formats saw a decline, according to Brick Meets Click and Mercatus. However, supermarkets were hit hard by a shift in where consumers buy most of their groceries. While Walmart saw a nearly 1 percentage point rise in the share of households that indicated the mass retailer was their primary grocery store, and hard discounters like Aldi gained almost 1.5 percentage points, supermarkets lost over 2 percentage points, per the report. The growing competition from mass and discount retailers carries over to e-grocery results, as well, Brick Meets Click and Mercatus found. One in four households that ordered groceries online from supermarkets also did so from Walmart in June, up 400 basis points year-over-year. On top of that, cross-shopping between traditional grocery stores and Walmart has risen every June since 2020 — which is when Brick Meets Click began measuring and monitoring this shopping indicator, the firm said. Overall, delivery saw a 29% year-over-year growth in June sales, reaching $3.8 million, which Brick Meets Click and Mercatus credited to strong growth in the segment's monthly active user base as well as gains in order frequency and average order value. 'June's strong results signal that this sustained surge in eGrocery sales, particularly in Delivery, is likely to continue because Delivery is now effectively free for many users,' Brick Meets Click Partner David Bishop said in a statement. Pickup also saw growth, with sales increasing 25% year-over-year to $4.3 billion, driven by increases to its monthly active user base, order frequency and average order value. Ship-to-home, meanwhile, saw sales increase 33% to $1.7 billion with its monthly active user base expanding faster than the delivery segment's, per the report. Delivery and ship-to-home both increased their sales share, with the former currently representing 38% of e-grocery sales and the latter 18%. Pickup, however, saw its share decline for the second straight year, dropping 110 basis points to 44%. The report is based on a Brick Meets Click survey of 1,496 adults conducted June 29-30, as well as a survey by the firm in June 2024 of 1,744 people. According to Brick Meets Click, despite the grocery channel reporting year-over-year improvements in building engagement through delivery and pickup, mass retailers still have a more than 10-point advantage in delivery, with Walmart continuing to attract new online customers who primarily buy groceries from supermarkets. Fairhurst, chief growth marketing officer at Mercatus, suggested that regional grocers leverage their customer data as a competitive advantage. The sharp rise of cross-shopping between traditional supermarkets and Walmart underscores 'the urgent need to defend your customer base on every channel by owning the relationship at each touchpoint,' Fairhurst said. Recommended Reading How grocers can level the playing field against Walmart in e-commerce Sign in to access your portfolio
Miami Herald
11-06-2025
- Business
- Miami Herald
Delivery continues to fuel grocery e-commerce growth
Dive Brief: 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 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.
Yahoo
14-05-2025
- Business
- Yahoo
Loyalty programs drive grocery e-commerce sales
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Loyalty memberships may be the key for small and mid-sized grocery players to win back Walmart e-grocery shoppers, according to the Brick Meets Click April 2025 report sponsored by Mercatus. Around two-thirds of households ordering groceries online from Walmart last month were Walmart+ members, according to Brick Meets Click Partner David Bishop Walmart+ has not only garnered more repeat shoppers for the mass retailer, but also seen its members spend more on online orders than non-members by over 40%. As grocery e-commerce keeps steadily growing, Walmart continues to reap the benefits over traditional grocers — and it has its Walmart+ program to thank for that. Walmart+ members are nearly 10% more likely to 'express intent' to reuse e-commerce services compared to Walmart customers who aren't members, per Brick Meets Click's findings. 'Historically, membership and subscriptions were considered more effective at building loyalty with regular customers, however, today we see that these programs are also attracting shoppers from rivals as households search for more savings,' Bishop added. The report noted that loyalty memberships also boost repeat customers month-to-month. Mass retailers continue to threaten conventional grocers with their online services. Over the past two years, mass retailers' household penetration grew from 46% to 50% while order frequency has 'increased steadily,' according to Brick Meets Click. Grocery e-commerce recorded its ninth consecutive month of sales in April, totaling $9.8 billion, a 15.2% increase compared to this period last year. Delivery led the growth, posting a 29% year-over-year increase to $4.2 billion in sales and contributing nearly three-quarters of the sales lift for the month, according to the press release. Ship-to-home also saw some growth, accumulating $1.9 billion in sales, an increase of just over 22%. Meanwhile, pickup sales remained flat at $3.7 billion as shoppers continue opting for delivery and the promotions companies offer in that channel, per Brick Meets Click. 'Discounted memberships have put Delivery in the spotlight, but lasting loyalty forms where speed, control, and value meet,' Mark Fairhurst, chief growth marketing officer for Mercatus, said in a statement. 'Regional grocers who combine fast, free Pickup with a compelling subscription program, data-driven rewards, and timely outreach to lapsed shoppers can turn trial orders into repeat business while protecting margins. Recommended Reading At brick-and-mortar powerhouse Walmart, e-commerce turns profitable Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-04-2025
- Business
- Yahoo
3 Stocks to Gain Big From Steady Growth in Online Grocery Sales
The retail sector has struggled a lot lately but has still managed to hold its ground amid growing inflationary pressures. Consumers have cut down on discretionary items as high prices continue to pinch their pockets. However, spending on groceries, which is a necessity, has been growing steadily. Retail sales saw growth in February, largely driven by online sales. Online grocery sales also grew in February after witnessing a solid jump in 2024. Given this situation, investing in grocery stocks with a strong online presence would be a prudent choice. We have narrowed our search to three grocery stocks, namely, Beyond Meat, Inc. BYND, United Natural Foods, Inc. UNFI and Utz Brands, Inc. UTZ, which have strong potential for 2025. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of the stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Online grocery sales grew a robust 31%, totaling $10.3 billion in February from the year-ago levels of $7.9 billion, according to the monthly Brick Meets Click and Mercatus Grocery Shopping Survey. This was also the third time that online grocery sales reached more than $10 billion in a month and the second-highest online grocery sales ever recorded in the United States. February's jump follows a 16.6% year-over-year increase in online grocery sales. Moreover, this was the seventh straight month that online grocery sales totaled more than $9.5 billion. The Delivery segment led online grocery sales in February. Its sales surged 45% from $3.1 billion a year ago to $4.5 billion for the month. The growth was primarily driven by a rise in monthly active users (MAUs). The solid start to this year follows a stellar 2024, which saw online grocery sales jumping 19% year over year in December. Overall, online grocery sales increased 18% in the second half of 2024 after a slow start to the year. An increasing number of consumers are buying groceries online, as it has become a preferred mode since the pandemic. High prices have been posing a challenge for millions of Americans, with major sectors suffering for months. However, groceries, which are part of the broader consumer staples sector, have defied the odds. Groceries are necessities, and it is almost impossible to cut down on everyday items. This has also been helping the broader retail sector. In February, retail sales grew 0.2% sequentially and 3.1% from the year-ago levels. Online retail sales rose 3.1% month over month in February. President Donald Trump's proposed tariffs plan have also been weighing on consumers' sentiment but that hasn't deterred them from spending on groceries. Beyond Meat, Inc. manufactures, markets and sells plant-based meat products primarily in the United States and internationally. BYND sells its products under the Beyond Beef, Beyond Chicken, The Beyond Burger, Beyond Meat, Beyond Sausage, Eat What You Love and The Cookout Classic brand names. Beyond Meat's expected earnings growth rate for the current year is 31.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the past 60 days. BYND presently carries a Zacks Rank #2. United Natural Foods, Inc. is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. UNFI offers approximately 250,000 products, consisting of national, regional and private label brands, grouped into the following main product categories — grocery and general merchandise; perishables; frozen foods; wellness and personal care items; and bulk and foodservice products. United Natural Foods' expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current-year earnings has improved 7.9% over the past 60 days. UNFI currently has a Zacks Rank #2. Utz Brands, Inc. manufactures a diverse portfolio of salty snacks under popular brands, including Utz, TORTIYAHS!, Zapp's, Golden Flake, Good Health, Boulder Canyon and Hawaiian Brand. UTZ, formerly known as Collier Creek, is based in New York. Utz Brands has an expected earnings growth rate of 10.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 60 days. UTZ currently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report Beyond Meat, Inc. (BYND) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
