Consumers continue to turn to online shopping for their grocery needs, sending August sales up nearly 14% year over year to a record $11.2 billion, according to Brick Meets Click Grocery Survey and Mercatus.
Demand for delivery and ship-to-home are reshaping the way shoppers buy groceries, said David Bishop, partner at Brick Meets Click.
The report attributed the strong growth to annual gains in household penetration, order frequency, and average order values. Delivery drove most of the growth, with sales increasing 30% compared to the same period last year.
Delivery captured almost six additional percentage points of sales share, finishing the month with 45% of total e-grocery sales. The overall monthly average user base for e-grocery expanded by 1% in August 2025. The gain came largely re-engagement of infrequent or lapsed customers and year-over-year penetration gains in 18-29 and 45-60 age groups. Delivery’s monthly average user base reached a record high, jumping 11% in August, driven by strong gains in the 18-29 and 30-44 age groups.
“As the U.S. eGrocery market continues to expand at an exceptionally strong pace, a key heads up for grocery operators is the growth of multi-method, multi-channel shopping, including cross-shopping with mass retailers like Walmart,” said David Bishop, Partner at Brick Meets Click. “To compete effectively, regional grocers must focus on retaining their newer and less frequent online customers and providing a seamless, multi-faceted digital experience that reinforces loyalty and minimizes reasons to shop with rivals.”
In the recent quarter, Walmart reported a 50% year-over-year growth in its U.S. delivery service. Bishop said the real surprise was that one-third of the delivery orders at Walmart were fulfilled in 3 hours or less – a feat the retail giant says it is doing without losing money.
Brick Meets Click said 40% of Walmart’s online orders in July were fulfilled using express same-day delivery, with promised delivery in 3 hours or less. Walmart also said that 20% of those express orders arrived within 30 minutes during its second quarter. Brick Meets Click found that express orders that included a tip were delivered faster than those without a tip. Bishop said that with a Walmart Express order for delivery in 3 hours or less, there is a $10 surcharge for Walmart+ subscribers, which covers the order assembly and the delivery charge.
Bishop said Walmart could do a better job communicating its fee structure with customers. The last report run by Brick Meets Click indicated that a sizable number of express delivery customers at Walmart did not add a tip to their order.
The report found ship-to-home sales were up 19% in August from a year ago. Ship-to-home gained sales share for the second consecutive year, benefitting from recent moves made by Amazon to expand access to its same-day fresh grocery offering.
The pickup segment recorded monthly sales declines of 4% compared to a year ago, due to a decline in order frequency and spending below the rate of price inflation. The grocery pickup segment shed more than six percentage points versus August 2024.
The report also found that more households used two or three methods for online grocery orders in August. Also, more consumers are cross-shopping with multiple retailers to fulfill all of their grocery needs.
Bishop said average order values increased 5.8% from a year ago, partly because of inflation. But the report also found delivery orders had the strongest performance with value increases of 10% year over year. He said demand is growing for grocery delivery as more consumers give the method a try. He said whether or not they become repeat customers will largely depend on the quality of the service and the costs associated.