Delivery Sparks 27% Sales Surge Across eGrocery

The online grocery space is booming – up 27% year-over-year to reach $8.7 billion in total sales in May – but not all segments are performing at an equal pace. That increase was primarily driven by gains across the delivery segment, per Brick Meets Click’s monthly Grocery Shopper Survey sponsored by Mercatus.

Delivery’s share of eGrocery sales rose 13 points to 45.4% in May, registering a “massive sales lift… greater than 70% compared to last year,” the report states. Total monthly delivery sales clocked in at $3.9 billion.

Beyond the delivery receiving method, pickup and contracted ship-to-home sales weighed on the eGrocery segment’s overall growth. May marks the first month since August 2024 that total monthly sales came in under $9.5 billion, but Brick Meets Click noted that month-over-month declines were expected due to seasonal patterns. Between April and May, eGrocery sales fell 12%.

“Delivery’s high growth rate for May is an outlier and reflects the cumulative impact of wave after wave of promotional activity that began fueling stronger sales for the service method in June 2024,” said David Bishop, partner at Brick Meets Click, in a press release. “While these promotions generally appeal to existing customers, Walmart’s effort is also helping the retailer to attract new customers. But, either way, it’s helping to grow delivery’s user base, order frequency, and AOV.”

Once a top-performing receiving method, pickup sales are now on the decline, dropping 3.6% year-over-year to $3.2 billion despite a mid-single-digit increase in the segment’s monthly average user (MAU) base. However, pickup lost 11 share points (now at 37.2%) due to a drop in order frequency and lower average order volumes (AOV).

The last remaining and smallest receiving method segment – ship-to-home – saw a slight, indirect benefit in mass from delivery’s acceleration, the report notes, with sales up 20.7% year-over-year to $1.5 billion. Brick Meets Click pointed to consumers’ ability to buy products at prices on par with physical stores, along with an added benefit of free shipping, as one key factor triggering the segment’s current momentum.

Overall, these trends look like they will be sticking around with the overall base of MAUs across all receiving methods and retail formats up over 10% in May; delivery alone grew its MAU at three times that rate. Order frequency also grew 10% year-over-year during the past month, driven almost entirely by an uptick in the delivery segment. Repeat intent rates are also up 900 basis points to 66.8% compared to this time last year.

“These results show how quickly shopper demand has shifted to delivery over the last 12 months, raising the stakes for regional grocers,” said Mark Fairhurst, chief growth marketing officer at Mercatus, in a statement. “While collaborating with delivery platforms is often essential for grocers, the key is to ensure that these partnerships strengthen – not weaken – their connection with the customer. Regionals that control the digital experience, leverage pickup’s first-party strengths, and build trust through personalized experiences will be best positioned to retain loyalty and share as the market evolves.”