Is Inflation Causing Consumers to Choose Pickup Over Delivery?Brick Meets Click finds pickup rose 9% in May from last year, while delivery increased 5%
Online ordering continues to post strong numbers—e-grocery sales in May reached $7.1 billion, 1.7% higher than a year ago, according to Brick Meets Click and Mercatus—but as inflation persists, consumers who enjoy the convenience of pickup and delivery “are also becoming more cost conscious.”
Pickup, which captured 45% of online grocery sales in May, rose 9% from last year, while delivery, with a dollar share of 36%, increased 5%, according to a Brick Meets Click/Mercatus Grocery Shopping Survey fielded May 28-29. (Ship-to-home, orders received via common or contract carriers such as FedEx and UPS, represented 19% of e-grocery sales in May and dropped 16% vs. the prior year.)
Pickup’s increase was driven by a more than 10% growth in its monthly active user (MAU) base, while delivery saw modest gains in MAUs, the companies said in a release. It’s also an indication that inflation is influencing where and how customers shop online.
“Customers appreciate the convenience of ordering online, but they are also becoming more cost conscious,” said Sylvain Perrier, president and CEO of Toronto, Canada-based Mercatus. “To defend the base business, Grocers can promote pickup to address both issues. Assuming the pickup experience aligns with customer expectations, showcasing the savings associated with pickup’s lower fees, no fuel surcharges or zero tips can better protect your online customers and sales by highlighting a more affordable alternative to home delivery.”
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