Skip navigation
ecommerce_generic.jpg Getty Images

Digital grocery sales hit $31B in Q1, but grocers still have work to do

The cost of picking groceries and fulfilling orders still the biggest drag on ecommerce sales

Digital grocery sales were up 5.2% year over year in the first quarter of 2024, reaching $31.4 billion, but nearly nine out of 10 grocers remain dissatisfied with ecommerce profitability, according to Grocery Doppio’s State of Digital Grocery Performance Scorecard. 

Overall grocery sales, 13.7% of which were made through digital portals, were also up, growing 6.7% year over year to $230 billion. 

The average digital grocery basket size climbed to $177.20, up 6.1% compared to a year ago, and the number of items in each basket increased by two. 

Inventory performance also improved with 72% grocers reporting progress over the same time last year. 

Nearly a quarter (23%) of grocers said digital profitability has improved over last year, while 69% said it has remained the same, and 8% said it’s gotten worse year over year. 

The cost of picking groceries and fulfilling the orders was identified by 83% of grocers as the biggest challenge to increasing their profitability. That’s followed by the cost of delivery and logistics at 73%; the volume of orders at 71%; the cost of customer acquisition at 66%; and both third-party marketplace fees and pricing/promotional strategy at 63%.

Most grocers (89%) voiced dissatisfaction with the profitability of their digital business, with picking inefficiencies as the main culprit at 86%. 

Grocers added that reducing third-party dependence (77%) is the second biggest path to improving ecommerce profits, followed by both renegotiating logistics/delivery costs and monetizing retail media at 69%; increasing private label products at 65%; and introducing membership models at 41%.

TAGS: News
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.