Latest news with #Mercatus
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
13-05-2025
- Business
- Yahoo
Walmart+ shoppers drive two-thirds of grocery sales
You can find original article here Supermarketnews. Subscribe to our free daily Supermarketnews newsletter. U.S. online grocery sales experienced its ninth consecutive month of sales eclipsing $9.5 billion in April, climbing 15.2% to $9.8 billion, according to the monthly Brick Meets Click Grocery Shopper Survey, sponsored by Mercatus. The delivery and ship-to-home fulfillment methods rose 29% to $4.2 billion and 22.1% to $1.9 billion year over year, respectively, while pickup remained flat at $3.7 billion. The survey of 1,699 shoppers found that the mass merchandise category continued to expand its monthly active user base in April, growing household penetration by 50% year over year. And order frequency among those shoppers has also grown, according to the report. 'Historically, memberships 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,' said David Bishop, partner at Brick Meets Click, in a press release. 'Regardless, Walmart+ has become a core component of its strategy as approximately two-thirds of the households ordering groceries online from Walmart during April 2025 were Walmart+ members.' Walmart+ members are also spending 40% more than their non-loyalty counterparts and are 10% more likely to express their intent to use the service again. 'Discounted memberships have put delivery in the spotlight, but lasting loyalty forms where speed, control, and value meet,' said Mercatus Chief Growth Marketing Officer Mark Fairhurst in the press release. '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.' 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
