Report: Walmart attracting online shoppers faster than other grocers

U.S. online grocery sales reached $8.2 billion in October, increasing 5% from the same period last year, according to the monthly Brick Meets Click/Mercatus Grocery Shopping survey released Monday.  

Total order volume slowed down for the month, but the drop was offset by higher average order values and an uptick in delivery, the report noted. Meanwhile, mass merchandisers continued to experience gains in their monthly active user base, average order value and order frequency, compared to October 2022. 

Shoppers increased their pickup and delivery purchases by 6% and 2%, respectively, in October compared to a year ago, while the ship-to-home method dropped 6%. 

The monthly active user (MAU) base for mass merchandisers was up 29% year over year, signaling a flight to value in shopping behavior like that seen over the last several months, the report said.  

Grocery also experienced a year-over-year increase in MAUs of 6% in October, with those over the age of 60 being the biggest contributor to the trend.  

“The mass format, and particularly Walmart, continues to attract a larger share of MAUs as U.S. households search for ways to save money,” said David Bishop, a partner at Brick Meets Click, in a statement. “The share of MAUs who bought from mass has grown over 11 percentage points since last year, finishing at more than 50% this October.” 

The total number of e-grocery orders was down roughly 3%, due in part to a reduction in ship-to-home orders and a dip in pickup orders, according to the report.   

Spending per order grew nearly 9% year over year for the topline average order value, while AOV for delivery was up 10%, pickup was up 6% and ship-to-home was up 5%. 

The percentage of shoppers who purchased groceries both online and from grocers in the mass merchandiser category hit a record high of more than 34%, spiking by 680 basis points for the month.  

The repeat intent rate for all online grocery shoppers jumped 390 basis points to 62% year over year in October, and mass merchandisers expanded their lead by 220 basis points to a nearly 10-point lead over grocers.  

“As today’s regional grocers focus on improving operational aspects of their online grocery services, they continue to face stiff headwinds from economic and competitive pressures,” said Mercatus President and CEO Sylvain Perrier in a statement. “To mitigate these challenges, grocers should identify ways to differentiate their online shopping experience, such as highlighting private label products, amplifying personalization efforts, and/or offering unique rewards and promotions that include product sampling.” 

Pickup edged out delivery in segment performance, despite contracting 130 basis points to 42.7%. That’s compared to pickup’s sales share boost of 260 basis points to 40%. Meanwhile, ship-to-home dropped 140 basis points to 17.3%, compared to the same period last year.  

Online grocery sales made up 12.5% of total weekly grocery spending for the last week of the month, up 90 basis points year over year. Pickup and delivery combined made up 10.3%, up 90 basis points from the same period in 2022.