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Insights for the Food and Grocery Industry

Online grocery sales continue to climb, but retailers struggle to turn a profit

Online grocery sales have levelled out but remain substantially above pre-pandemic levels and are projected to gain momentum among a larger customer base in the coming years. According to Incisiv and its Grocery Doppio platform, 14.4% of all 2022 grocery purchases were digital, with that figure expected to rise to 15.3% in 2023 and 20% by 2026. The digital grocery adoption trend has expanded across all customer segments, including elderly consumers who were reluctant to make online purchases before the epidemic. From the first to the fourth quarter, average digital basket sizes grew 26.1% to $95 and averaged $82 for the whole year. Despite greater digital food order volumes and years spent fine-tuning these efforts, online grocery shopping remains unprofitable for retailers, with $23 billion in sales lost last year owing to goods that were unavailable or unsubstituted in consumers’ digital orders.

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