The U.S. online grocery market had $95.8 billion in total sales in 2023, down 1.2 percent from the year prior, according to annualized results from the Brick Meets Click/Mercatus Grocery Shopper Survey.
Lower sales were driven by a decline in order frequency by online grocery shoppers.
“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click, in a statement. “Despite the challenges, Pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotes that aided Delivery in 2023.”
Also among the findings:
• Order frequency among monthly active users contracted for the second year in a row in 2023. The average number of monthly online grocery orders completed fell 6 percent versus 2022, following a 4 percent decline the previous year.
• Average order values, not adjusted for price inflation, rose 3 percent in aggregate in 2023 versus the prior year.
• The overall monthly active user base climbed 2 percent versus the previous year.
Related: Walmart Expands Drone Delivery, Expands Tech Innovations; Hannaford To Go Offers Free Pickup.