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COVID-19 Boosts Online Grocery Sales

05/13/2020

A recent survey confirmed that combining store pickup and home delivery, grocery sales increased 32.5 percent to $5.3 billion in April compared to the preceding month.  The number of customers however only increased by 11 percent to 40 million. The number of orders paralleled sales with a 33.3 percent increase to 62.5 million.  Average spending per order increased 3.7 percent to $85 per basket in April. 

 

Apparently only half of the households surveyed stated they were satisfied with online grocery service although this was up by three percent from March.  Problems include out-of-stock, limited availability and restricted time slots for pickup. These complaints reflect deficiencies in infrastructure extending from DCs to the curbside or customers’ front doors.

 

With relaxation of COVID-19 restrictions it is questionable whether all converts to alternative purchasing will revert to in-store shopping especially if chains are unable to resolve customer complaints and provide a more comprehensive and reliable service for both pickup and delivery.

 

The question also arises as to what will be required to bring consumers back in to stores when normality resumes and how different demographics will approach grocery shopping. What will probably occur is the emergence of specific categories of consumers such as mothers with young children that will favor curbside pickup, the elderly favoring home delivery and others patronizing large grocery chains with added features such as restaurants and attractions in search of a "destination experience".