Barrington, Ill. – January 13, 2025 – The U.S. online grocery market ended December 2024 with $9.6 billion in monthly sales, an 18.7% increase over last year as all three fulfillment methods posted year-over-year (YOY) sales gains according to the Brick Meets Click/Mercatus Grocery Shopper Survey fielded December 30-31, 2024.
December marks the 5th straight month of eGrocery sales above $9.5 billion and caps off a year that essentially reflected two periods: before and after the appearance of discounted promotions on subscriptions and/or membership programs.
Overall eGrocery sales during 1H24 were basically flat, posting only a 0.3% gain versus 1H23. However, during 2H24, eGrocery sales surged 17.7% YOY, driving annual sales up 9.1% versus 2023.
All three receiving methods reported similar shifts in their sales performance between the first and second half of the year. Delivery’s growth rate increased from less than 4% in the first half of 2024 to more than 25% in the second half. Ship-to-Home’s growth rate also jumped dramatically, increasing from 5% to approximately 20% between the two periods. And, Pickup, which declined 4% during the January-June period, posted a nearly 8% gain during the July-December 2024 period.
The main difference between the two periods was the broad presence and aggressive promotion of annual subscriptions or memberships that began in mid-year and have continued off and on since then. Discounts, ranging from 33% to 80% off, were seen from a variety of marketplace providers, Mass retailers, plus national and regional Supermarkets as well.
“While subscriptions and memberships aren’t new, the deep discounts were new, and they resonated with customers by offering the opportunity for significant savings,” said David Bishop, partner at Brick Meets Click. “As a result, customers are more vested in their provider-of-choice, motivating many to place more orders which helps those providers to gain a larger share of the grocery wallet and improve engagement and retention rates.”
Looking at the monthly sales results for December 2024, each receiving method posted YOY gains, reversing the sales decline that all three reported in the prior year. Delivery grew 24.6% YOY in December to $4.0 billion, accounting for 41.7% of total eGrocery sales, up from 39.8% last year. Pickup monthly sales climbed 5.3% YOY to $3.8 billion, as it ceded 500 basis points (bps) of share versus last year and finished with 39.4%. Ship-to-Home sales surged nearly 40% YOY to $1.8 billion, contributing 18.9% of total eGrocery sales, up from 15.9% in December 2023.
Grocery operators continue to face increasing challenges to online growth, especially given the stiff competition from Mass retailers. In terms of penetration, more than half of all monthly active users (MAUs) completed one or more online grocery orders with a Mass retailer during December 2024, while only approximately one-third of all MAUs completed at least one online order with a Grocery operator. (Grocery includes both Supermarket and Hard Discount formats.)
As for cross-shopping, one-third of Grocery’s MAU base also completed an order with a Mass retailer in the same month, jumping over 800 bps in December 2024 versus last year. And, when it comes to the likelihood that a customer will use the same service again within the next 30 days, Mass continues to post stronger repeat intent rates for both Delivery and Pickup services than Grocery, although the gaps have narrowed versus last year.
“Regional grocers looking to boost eGrocery sales should focus on delivering real savings and targeted loyalty perks,” said Mark Fairhurst, Chief Growth Marketing Officer at Mercatus. “By leveraging AI-driven personalization and integrated loyalty solutions, grocers can convert occasional shoppers into loyal digital customers, driving repeat orders and larger baskets across both online and in-store channels, to fuel sustained growth.”
For more information about December 2024 results, check out the latest Brick Meets Click eGrocery Dashboard or visit the eGrocery Monthly Sales report page for information about subscribing to the full monthly report.
About this consumer research
The Brick Meets Click/Mercatus Grocery Shopping Survey is an ongoing independent research initiative created and conducted by the team at Brick Meets Click and sponsored by Mercatus.
Brick Meets Click conducted the most recent survey on December 30-31, 2024, with 1,694 adults, 18 years and older, who participated in the household’s grocery shopping, and a similar survey in December 2023 (n=1,745). Results are adjusted based on internet usage among U.S. adults to account for the non-response bias associated with online surveys. Responses are geographically representative of the U.S. and weighted by age to reflect the national population of adults, 18 years and older, according to the U.S. Census Bureau.
The three receiving methods for online grocery orders are defined as follows:
· Delivery includes orders received from a first- or third-party provider like Instacart, Shipt or the retailer’s own employees.
· Pickup includes orders that are received by customers either inside or outside a store or at a designated location/locker.
· Ship-to-Home includes orders that are received via common or contract carriers like FedEx, UPS, USPS, etc.
About Brick Meets Click
Brick Meets Click is an analytics and strategic insight firm that connects today’s grocery business with tomorrow’s needs. Our clear thinking and practical solutions help clients make their strategies and customer offers more compelling and relevant in the changing U.S. grocery market. We bring deep industry expertise and fact-based analysis to the challenge of finding new routes to success.
About Mercatus
Mercatus drives digital transformation for retailers through an extensive suite of connected and contextualized commerce solutions. We enhance shopper engagement, tailor experiences to individual preferences, and cultivate enduring loyalty across retail businesses of every size. Our mission is to enable retailers to captivate customers, boost sales, foster retention, and deepen loyalty in a digital world. With our cutting-edge solutions, retailers can streamline operations, enrich customer experiences, and realize substantial growth. Embark on the digital transformation journey and unleash the full potential of your retail business with Mercatus.
Media Inquiries
David Bishop, Partner, Brick Meets Click
847-722-2732, david.bishop@brickmeetsclick.com
