Key Trends and Actionable Takeaways for Grocers in 2022

Grocery eCommerce has boomed over the past two years with changes in consumer habits shaped and accelerated by the pandemic. In March 2020, Brick Meets Click began releasing their grocery Shopping Survey on a monthly basis, sponsored by Mercatus, to measure grocery eCommerce growth and shopper behavior through the pandemic.?

The August 2019 survey serves as a pre-pandemic benchmark that provides an invaluable comparison of the online grocery industry pre-pandemic and mid-pandemic. With the new wave of Omicron cases surging throughout most of the world including in North America it's difficult to say we're in a post-pandemic era just yet. This high-level overview of grocery industry trends provides a roadmap of what's to come for the industry, and also offers valuable insights at the granular level with regard to what's required for grocers to succeed. Here’s what we’ve learned:

Online grocery shopping is here to stay (and grow)

What began as a niche market has officially gone mainstream. Monthly online grocery sales grew 430% from August 2019 to August 2021, and our research conducted in collaboration with research firm Incisiv, shows sales will only continue to grow to account for a projected 11% of total grocery sales in the U.S. in 2022.?

This is good news for grocers who invested in developing eCommerce capabilities to meet exploding consumer demands. Fluctuations continue on a month-to-month basis, as will demand. With this new wave of COVID-19 cases accompanied by restrictions in some areas, it's clear consumers aren't returning to what was considered "normal"' pre-pandemic.?

Grocers will be challenged to ensure eCommerce is profitable and sustainable, but this can be achieved by adding an owned eCommerce experience in addition to your presence on a third-party marketplace. Additionally, long-term profitability can be achieved by honing your fulfillment operations to increase capacity and efficiency.

Shoppers Prefer Pickup

Pre-pandemic, ship-to-home was the dominant fulfillment method, but by August 2021, pickup emerged as the clear winner in the ongoing race with ship-to-home and delivery. Mercatus' recent report eGrocery Transformed: 2021 supports these findings, as shoppers indicated pickup as the most preferred fulfillment method. 75% of online orders are expected to be fulfilled via pickup services going forward. This isn’t surprising, as we know pickup is typically less expensive, with fees usually being half that of delivery. It also provides customers with more control and certainty surrounding the quality of products and how long it takes to receive an order.?

Grocers need to offer pickup whether curbside or in-store to help attract and retain the greatest number of customers. Advance picking and packing methods and technologies can help streamline your services and make them more efficient, which benefits both grocers and shoppers alike.?

Read our blogs for more insights from two years of grocery shopper surveys. Find out how you can take advantage of growing eCommerce adoption, capture customer loyalty with pickup services and combat the risks of increasing cross-shopping. https://www.mercatus.com/blog/grocery-ecommerce-growth/