Last month, the U.S. online grocery market sat at $8 billion in total sales, down 7.6 percent compared to last year, according to the monthly Brick Meets Click/Mercatus Grocery Shopping Survey.
The year-over-year decline was driven by delivery and pickup, which fell 7.4 percent and 8.5 percent, respectively, as well as ship-to-home which fell 5.9 percent. Share of online spending also contracted: down 1.6 percent to 12.7 percent versus last year.
For active monthly food shoppers, cost considerations are now the most important factor in determining where they shop and how they receive online grocery orders; last year, the top consideration was convenience, according to the survey.
The shift towards savings also changed how users chose online services: in March, 44 percent of households that used a pickup or delivery service said that not paying more than necessary was important to the selection process.
The online grocery market contraction meant that the average number of online grocery orders completed by users continued to decline from pandemic highs, whether due to ongoing attempts to stretch a dollar, further decline in concerns about respiratory infections, or a combination of factors. Monthly order frequency dropped to 2.42, the lowest level since the COVID pandemic, however, it sits almost 20 percent above the pre-pandemic value.
The survey suggests that the elimination of emergency SNAP benefits in March likely had a disproportionate effect on pickup sales, as roughly 75 percent of SNAP households lost an additional $95 per month to buy groceries.
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