Online grocery sales in the U.S. fell from a peak a month earlier to $8 billion in February, down 14% from $9.3 billion in January, as Americans stayed at home under orders, according to a new survey.
The survey results show that the main reason for the decline in sales in the United States in February was the decrease in the number of households purchasing groceries online in the United States. In terms of active users, the number of active users in February fell from 69.7 million in January to 12.1 million, a decrease of 12%.
Brick Meets Click reported that most of the decline (over 40%) came from the 60-and-over age group, which may indicate that people's confidence and personal preference for in-store shopping will continue to increase as the new crown vaccine becomes available .
Additionally, online grocery shoppers placed 6% fewer orders in February, with the average number of orders falling to 2.7 from 2.8 in January. The frequency of home delivery orders fell 12%, while the monthly decline for delivery and pickup was 4%. Brick Meets Click noted that households’ expectations and perceptions of the value of online grocery shopping are changing as people become more familiar with the service options.
Overall satisfaction scores for pickup and delivery were roughly equal in February, but first-time user scores differed. More than 40% of first-time delivery service users said they were very or extremely likely to use the service again, while first-time pickup service users had repeat intent scores of less than 30%.
On the bright side, Brick Meets Click said average order value (AOV) rose 4% month-over-month in February, driven by a shift to pickup and delivery, which generated larger orders.
For many regional grocery chains, the online shopping battleground has shifted from delivery to curbside. Implementing a frictionless curbside fulfillment experience that is more appealing to consumers will help offset the low-price advantage of mass merchants.
Enhanced pickup services combined with retailer-branded marketing strategies can win back lost and churned customers, which can help increase monthly order frequency and generate significant contribution margins for online shopping. February USA Consumption changes |
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