Inflation has impacted the entire food and beverage sector, and the grocery industry is no exception. According to the Brick Meets Click/Mercatus Grocery Shopping Survey, online grocery orders reached $7.8 billion in July, an increase of 17% over the same time last year. For the month, 68 million households bought groceries online.
“COVID-19 concerns coupled with inflation have forced a tradeoff between two fundamental desires for shoppers – not getting infected and not paying more than necessary,” said David Bishop, partner at Brick Meets Click. “While online shopping – especially delivery – costs more than in-store shopping, using an online service may help prevent illness which could cost more in the long term due to lost wages and other life complications.”
The average online order increased by 11%, driven by the rising cost of food. The average price of delivery sales increased by 13%.
“Online customers are highly motivated by convenience, and pickup offers customers a higher degree of convenience and control at a lower cost than Delivery,” said Sylvain Perrier, president and CEO at Mercatus. “My advice to regional grocers is to use your store locations to your competitive advantage and promote pickup services to your delivery customers.”