Q3 is showing a decline in regional online grocery services. This decline is most likely contributed to consumers returning to in person shopping as well as competitive online grocery services. The third quarter showed a 13.5% decrease in sales for regional grocers same-store online purchases, this was the case for all but 3 of the 25 grocers who participated in the research.
In addition to the decline in online purchases, there is a decline of 16.8% in volume as compared to last year, which is caused by the reduction in customers, which completed 19.8% less online shopping as compared to 2022. One-way regional grocers can help increase their performance by having a robust commerce following. Even though the volume has declined, the data is showing customers spending more and completing more orders. The 7.6% increase in larger basket rings has helped to offset the declines in order volume.
David Bishop with Brick Meets Click stated, “Given these shifts, improving customer retention rates is vital for regional grocers. The analysis determined that it requires 2.5 new customers to replace the current value associated with one of the longest-term customers. However, a more realistic replacement number is 3.5 new customers, given the fact that only about 30% of new customers will age to the comparable level of one lost long-term customer.”
The U.S. overall e-commerce sales were up 5% and totally $8.2 billion. The increase in pickup deliveries has helped this increase as well as Walmart. Walmart is one retailer who has actually seen an increase in their online grocery sales, which resulted in almost 36% of the U.S. online total for the second quarter. Slyvain Perrier, Mercatus President and CEO stated, “To drive growth, grocers must invest in strategies that increase basket size and the frequency of orders,” Perrier said. “Helping online customers to save time with personalization, discover new products through intelligent promotionalpairings, and get more value for money, such as through loyalty programs, are just some of the ways to ensure customers stick around.”