Online grocery sales rise 20.7% in third quarter

BARRINGTON, Ill. — Consumers are buying groceries online and using expedited delivery options, according to data from Brick Meets Click.

Grocery spending by U.S. shoppers increased 20.7% in the third quarter compared to a year earlier, the firm says. Online grocery now accounts for 20.9% of total grocery spending in the United States, the highest market share to date.

Delivery sales jumped more than 30% year over year and were responsible for about three-quarters of the increase. In-store pickup increased in the mid-single digits.

 Meanwhile, in-store grocery sales declined year over year in the quarter ending September 30, Brick Meets Clicks reports.

Nearly two-thirds of consumers bought groceries online in the quarter.  The number of online shoppers who order more often is also increasing, the firm says, helping to push the annual growth rate above 20% for eight consecutive quarters.

“Customers today have a multitude of online grocery options that can satisfy a broad range of needs, states and/or occasions from an urgent quick trip to a routine stock-up,” says David Bishop, partner at Brick Meets Click. “Many of the newer e-grocery offerings focus on shorter order cycle times, while others strive to provide ways to avoid paying more than necessary.”

Consumer satisfaction with e-grocery continues to rise

Consumers are also shopping in multiple ways, Bishop says, using delivery, pickup and ship-to-home, depending on the occasion. All three methods posted positive annual gains in the quarter.

But the third-quarter gains in delivery came at the expense of pickup orders, which grew in the mid-single digits. Ship-to-home grew slightly less year over year.

Satisfaction levels suggest an increased acceptance of online grocery, Brick Meets Click says. Customers’ likelihood of using the same online grocery shopping service again within the next 30 days climbed in the quarter for the second year in a row. The repeat intent rate for delivery or pickup orders has increased each of the past three years, to 62% this year.