The last quarter of the year is off to a positive start for U.S. online grocery sales, which increased 27.9% year over year, according to new data from the monthly Brick Meets Click and Mercatus Grocery Shopping Survey.

U.S. online grocery sales in October grew among each of the three fulfillment methods Brick Meets Click and Mercatus track. As a result, October’s total sales set a record high and marked the second straight month in which year-over-year sales growth exceeded 20%, Brick Meets Click said.

Brick Meets Click and Mercatus define the three receiving methods for online grocery sales as:

• Delivery: Includes orders received from a first- or third-party provider like Instacart, Shipt or the retailer’s own employees.
• Pickup: Includes orders received by customers either inside or outside a store or at a designated location/locker.
• Ship-to-home: Includes orders that are received via common or contract carriers like FedEx, UPS, USPS, etc.

Online grocery sales ‘turbo-charged’ in October 2024

U.S. online grocery sales in October reached $10.5 billion — a record high and the first time crossing the $10 billion mark in a single month.

Before that, the highest monthly total was $9.9 billion in August 2024, followed by $9.5 billion in September 2024.

The overall monthly active user (MAU) base for U.S. online grocery sales grew 1.6% year over year, according to Brick Meets Click and Mercatus. 54% of U.S. households completed at least one online grocery order during the month via one of the three fulfillment methods.

To date, Pickup monthly sales had not been greater than or equal to $4.8 billion, which means that Delivery also set a record high for all segments (not just Delivery) in the month, according to Cindy Christian, managing editor at Brick Meets Click.

October was also the first time that monthly sales for Delivery exceeded the sales of Pickup.

“While monthly sales for Delivery have been close to Pickup a few times, like in July ’24 and Sept. ’24, the only time when Delivery and Pickup sales were equal was in Aug. ’22, when they both were at $3.5 billion,” Christian told Digital Commerce 360 via email.

Delivery

Delivery experienced “another turbo-charged month,” Brick Meets Click said in a statement, citing deep-discounted offers.

The MAU base grew at a faster rate for Delivery than for Pickup or Ship-to-Home, increasing 16% year over year in October. That, along with an increase in order frequency, fueled 46% year-over-year growth in Delivery, totaling $4.8 billion — a record high for the segment. It’s also up from $3.3 billion the prior year.

Moreover, Delivery’s average order value (AOV) increased 15% year over year.

“Delivery is riding its next growth curve, fueled not simply by subscriptions or membership offers, but by promotional pitches that incent the customer to commit for a year,” said David Bishop, partner at Brick Meets Click, in the statement. “While firms occasionally revert to their standard ‘free trial’ offers, the surge of new discount tactics seem to have a broader appeal that extends beyond the existing customers of the retailer or provider offering it.”

Pickup

Pickup sales, which are normally the largest of the three segments, increased about 20% year over year. That’s up to $4.2 billion in October 2024 from $3.5 billion in the same month in 2023. The number of Pickup orders in October grew 6%, which Brick Meets Click attributed to “higher order frequency as opposed to household penetration.”

The segment’s MAU base grew by less than 1% year over year in October. Notably, the 40-50 age group shrunk compared to the prior year, which offset growth in other age groups, according to Brick Meets Click. Still, Pickup AOV increased by about 13% year over year.

Ship-to-Home

The Ship-to-Home segment’s sales grew to $1.5 billion in October. That’s up 6% year over year from $1.4 billion.

Typically the smallest of the three segments by total sales, its MAU base grew by less than 3% year over year. Its order volume declined 5%, whereas its AOV increased 12%.

Mass Merchants and hard discount stores create headwinds for grocery stores when it comes to online sales, according to Mark Fairhurst, chief growth officer at Mercatus.

“As national giants like Walmart accelerate growth with aggressive membership offers, there are effective ways for regional grocers to adapt and better connect with their core customers,” Fairhurst said in a statement. “By improving loyalty programs and enhancing the relevance of digital initiatives to leverage targeted and personalized campaigns that integrate online and offline promotions, regional grocers can seize new opportunities to strengthen their position in a competitive market.”

Click here to read last month’s update on online grocery sales.

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