News • 05.11.2021

75% of online grocery orders to be fulfilled at grocery stores

Demand for grocery home delivery has plateaued according to 40,000 U.S. customers

A row of doors of regriferated cabinets, with text: 75% of online orders will...
Source: Mercatus

Mercatus announced findings from its annual eGrocery survey of U.S. consumers, conducted in collaboration with Incisiv. The report, titled "eGrocery Transformed: 2021 market projections and insight into online grocery's elevated future", confirms that U.S. online grocery customers are predominantly oriented towards grocery pickup services with 75% of survey respondents preferring store pickup.

The number of online grocery customers who report using curbside pickup at least once in the last year increased to 61% on average in 2021, up 9% from the previous year’s survey. When asked the same question about home delivery, there was no increase in reported use for 2021. Forty-six percent of online grocery customers reported using delivery services at least once in the last 12 months – the same level as 2020.

When asked why they preferred grocery pickup over delivery, respondents identified avoiding higher delivery fees and surcharges as the main reason. While 57% of online customers say that expedited (same-day) delivery is important, only 15% of all shoppers are willing to pay a separate fee for it.

The wide-scale adoption of grocery pickup services is expected to further curtail online customers’ use of home delivery in the future. Pre-pandemic the number of respondents who said they preferred using delivery was 27%. That number climbed to 41% during the height of pandemic-related restrictions. Post-pandemic that number is expected to drop to 24% as retailers continue to improve their ability to offer a better online customer fulfillment experience.

“Pickup works particularly well for both grocers and their customers in the North American market,” said Sylvain Perrier, president & CEO at Mercatus. “Pickup services offer grocers more control over the cost to serve online customers than third-party delivery. Online customers love the precision, flexibility and overall convenience that store pickup provides. And when done well, pickup services make for a better overall shopping experience that builds lasting connections with customers, which will lead to repeat business for grocers.”

The survey also asked about U.S. grocery customers’ preferred mode of online shopping. Mobile is clearly the future of online grocery, as consumers are expected to increase their mobile channel usage in the next year by 14%. Grocery customers are increasingly using their preferred retailer’s mobile application for in-store assistance like product location, proximity promotions and self-checkout.

According to Incisiv, the increased adoption of online grocery evident in the survey results means the online grocery channel (pickup, delivery and ship-to-home) is expected to continue to grow to reach 11.1% of total U.S. grocery sales next year. In five years’ time, online grocery is projected to account for 20.5% of total U.S. grocery sales – or an estimated USD $263 billion out of total annual sales of USD $1,285 trillion. This represents a marginal reduction over 2020’s estimate as U.S. grocery customers adjust to returning to brick-and-mortar grocery stores.

Source: Mercatus

related articles:

popular articles:

Thumbnail-Photo: Glory receives 2024 Red Dot award for Product Design...
09.07.2024   #customer experience #design

Glory receives 2024 Red Dot award for Product Design

Glory’s new CI-X Series of retail cash recycling solutions have been awarded a “Red Dot Design Award 2024”, in the product design category.

The Red Dot Award is an international product design award for new products that demonstrate innovation and impact ...

Thumbnail-Photo: Mystery box vending machines: Surprise pack with a success factor?...
14.08.2024   #e-commerce #customer experience

Mystery box vending machines: Surprise pack with a success factor?

New trend tested by iXtenso

Vienna, Berlin, Hamburg, Cologne: mystery boxes or vending machines are popping up in more and more places. The promise: Thrills and spills for little money; after all, you don't know what you're going to get. Reason enough for the iXtenso ...

Thumbnail-Photo: E-commerce in transition? Trends and challenges for retailers...
02.10.2024   #customer experience #artificial intelligence

E-commerce in transition? Trends and challenges for retailers

How Douglas, Shopify, Kapten & Son/Charles and Google see the current market

Representatives from Douglas, Shopify, Kapten & Son/Charles and Google discussed the new challenges and opportunities ...

Thumbnail-Photo: More than just inspiration: What makes Pinterest a successful...
29.08.2024   #customer experience #fashion

More than just inspiration: What makes Pinterest a successful performance marketing channel?

How to reach targeted customers and influence their purchasing decisions

Mit über 580 Millionen aktiven Nutzenden weltweit bietet Pinterest eine gewaltige Reichweite und wächst weiter. Besonders die Gen-Z hebt ...

Supplier

GLORY Global Solutions (Germany) GmbH
GLORY Global Solutions (Germany) GmbH
Thomas-Edison-Platz 1
63263 Neu-Isenburg