Accelerating online grocery sales to the new norm in the popular e-commerce category

Strong e-commerce grocery sales in May continue a months-long trend, driven by new online shoppers in the vertical industry and more frequent digital shopping trips, says trade protection provider Signifyd

SAN JOSE, California, June 17, 2024–(BUSINESS WIRE)–Online grocery sales continued at a furious pace in May, helped by lower prices and an influx of new customers buying groceries online, according to e-commerce sales data from Signifyd.

Overall, grocery spending increased 30% year-over-year in May, according to Signifyd’s monthly report with Ecommerce Pulse data. This number is well above inflation and indicates that the consumer spending spree on groceries has not stopped. Collectively, these trends may point to a long-debated post-pandemic “new normal.”

E-commerce sales in the grocery category, which includes curbside pickup, have surged during the pandemic for obvious reasons. However, now that concerns about in-person shopping have passed, there is no indication that the category will ever return to online sales at anywhere near pre-pandemic levels.

“Grocery sales remained strong throughout the year, up 23% overall,” said Signifyd data analyst Phelim Killough, who prepares the monthly Signifyd Pulse report. “This is largely due to an increase in order volume – we found that these orders are coming from many more people buying groceries online than a year ago.”

Evidence of lasting transformation in grocery shopping can be found in Signifyd’s data for the first five months of the year. Signifyd Ecommerce Pulse data shows that since January:

• Online grocery sales increased by 23% compared to the same period last year.

• The number of orders increased by 31% compared to last year.

• The average value of each order placed decreased by 6%.

• The number of new customers buying groceries online increased by 10%.

• Orders placed per buyer (identified by a unique combination of digital signals) increased by 19%.

• Home delivery orders increased by 25% and curbside pickup by 21%.

The sharp increase in sales comes as e-commerce inflation in the grocery industry flattens, down 0.1% from last year. This compares to the year-over-year inflation rate of 6.7% in May 2023 for the grocery category.

Looking beyond all the up arrows for the grocery category, the numbers describe a growing group of shoppers who are more likely to be paying closer attention to their spending when deciding to shop online than they were a year ago. The trends mean that retailers and brands must be strategic in their pricing decisions to capture the attention of a growing and increasingly price-sensitive market.

The story continues

According to Signifyd Pulse data, e-commerce sales in May increased by 12% compared to last year. In addition to groceries, other popular categories that saw growth included auto parts and tires, which were up 5% compared to May 2023. Household products and entertainment and recreation products were up 4% year-over-year. Luxury goods fell 3% year-on-year. The “Beauty” and “Electronics” categories declined by 2% annually.

Meanwhile, fraud pressure increased by 35% in May compared to a year ago. Fraud pressure is a measure of the rise and fall of orders that Signifyd’s AI models deem to be very risky and therefore likely to be fraudulent.

For more data from May, including fraud trends; buy online, pick up in store; buy now, pay later; sustainable goods trends and private label sales; visit Signifyd’s Pulse e-commerce hub.

Methodology

Signifyd Ecommerce Pulse data comes from transactions across the Signifyd commerce network of thousands of e-commerce retailers and brands. Commerce Network intelligence also powers the Signifyd trade protection platform, which uses AI-powered machine learning models and data from millions of transactions to detect and block fraudulent activity while increasing the number of good orders approved. Signifyd has seen over 600 million unique purchase wallets¹ globally, which means that 98% of the time when a buyer visits a Signifyd-protected site, Signifyd’s machine learning models recognize them immediately.

About Signify

Signifyd provides a comprehensive trade protection platform that leverages its merchant network to maximize conversions, automate customer service, and eliminate the risk of consumer fraud and abuse for retailers. Signifyd, a leading provider of payment security and fraud prevention for Digital Commerce 360 ​​Top 1,000 retailers, is headquartered in San Jose, California, with locations in Denver, New York, Mexico City, São Paulo, Belfast and London.

¹ A digital wallet is a distinct combination of signals found in an online transaction.

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