Shopper Experience
15 May
Egrocery sales rise in April, but there are big red flags
The gap in repeat intent between mass retailers and grocery set a new record, Brick Meets Click and Mercatus found.

(Photo courtesy of Walmart)
The gap in repeat intent between mass retailers and grocery set a new record, Brick Meets Click and Mercatus found.
(Photo courtesy of Walmart)
A boost in eGrocery sales was driven by a growing preference for mass retailers like Walmart and Target, according to new data.
The April 2023 edition of the Brick Meets Click/Mercatus Grocery Shopping Survey showed:
eGrocery sales totaled $8.2 billion for April 2023, rising 0.9% from April 2022.
Online’s share of total grocery spending fell in April. It was down 20 basis points to 12.1% when compared to last year.
While delivery gained, pickup and ship-to-home use fell. (Image via Brick Meets Click/Mercatus)
There was significant divergence among the three primary fulfillment categories. Delivery sales were up 20%. Meanwhile, pickup was down 3%, and ship-to-home fell 19%.
Digging deeper into key metrics yields the reason why this happened. In delivery, the monthly active user base grew 11% from a year ago, and was up 1% on a two-year basis. The average order value also rose 5%.
In pickup, the monthly active user base also grew in the “mid-single digits," according to the report. However, the category also saw a lower order frequency, while average order volume fell.
The biggest point of interest in this month’s findings for grocers comes in the area of repeat intent.
The likelihood that a customer will use the same service within the next 30 days fell 530 basis points compared to last year. This was a decline to just under 58%. In particular, the most precipitous drop came among the most frequent customers, who completed 4+ orders in the last three months.
Most importantly, there’s also a huge gulf in the intent to repeat between grocery and mass retailers. Both saw declines, but at a different scale. Grocery fell 900 basis points, while mass retail was down 300 basis points. It’s the biggest gap between the two categories recorded by the survey, surpassing the previous record set in January of this year.
The issues for grocery appear when one digs down into fulfillment methods. Delivery for grocery orders fell significantly compared to mass. That’s important because delivery is a much higher share of online orders in grocery than it is in mass.
The findings are a major warning sign for grocers.
“Given that customers vote with their wallet, the expanding gap in repeat intent between mass and grocery should be a red flag that warrants grocers re-evaluate all aspects of the customer experience,” said Sylvain Perrier, president and CEO of Mercatus, in a statement. “Customers’ expectations continue to evolve based on past experiences, which means it’s vital that grocers continue to improve the execution of various aspects, whether that’s a more personalized experience, fewer out-of-stocks, or shortened wait times.
It’s worth noting that these trends are coming at a time when rising prices have put particular pressure on consumers shopping for food. Over the last year, food at home has consistently been among the top categories experiencing dramatic levels of inflation. As a result, consumers have sought stores with lower prices. There are signs that this is changing behavior. Walmart is gaining higher-income consumers that may not normally shop there. While grocery delivery may be another area that sees pullback, the findings suggest that consumers are choosing not just how they shop, but where they shop for essentials, as well.
Dealboard has funding and M&A updates from ecommerce aggregators and forecasting software.
Hunter is joining ABG's portfolio. (Courtesy photo)
This week, the aggregator space is active with M&A, IKEA is ready to roll out newly-purchased warehouse management software and Authentic Brands Group acquired a boot icon. Plus, there’s new investment to report for YouTube influencer Emma Chamberlain’s coffee brand and retail forecasting.
Here’s a look at the latest deals:
Chamberlain Coffee, the consumer brand founded by YouTube influencer Emma Chamberlain, raised $7 million in new funding.
The financing included backing from existing investors including Blazar Capital, Chamberlain and United Talent Agency. New investors include Volition Capital, Electric Feel Ventures, L.A. Libations and Noah Bremen, founder of PLTFRM.
The new funding follows the launch of a Ready-to-Drink (RTD) product and coffee pods. Previously, the brand raised a Series A in August 2022.
"Creating a uniquely inviting coffee brand has been my dream for so long now, and having key investors back us allows us to build Chamberlain Coffee in ways that feel fresh and exciting,” said Chamberlain, in a statement. “There are so many products I am eager to develop and projects I'm excited to get working on. With such an incredible team and group of investors I am more excited than ever to see what the future holds for Chamberlain Coffee."
Impact Analytics, a software company for retail supply chain and merchandise planning, raised new funding from Vistara Growth.
The new investment, the amount of which was not disclosed, comes after Impact raised funding in February 2021 and October 2022 from Argentum.
The funding will help Impact Analytics further develop its Impact Analytics SmartSuite product portfolio, which is designed to help optimize forecasting, merchandising and end-to-end lifecycle pricing. Rather than the traditional forecasting approach of basing decisions on the preceding year, Impact Analytics applies a model that includes 150 variables from internal and external sources, while combining recency and history. Clients include BJ's Wholesale Club, Dick's Sporting Goods, Puma and Tapestry.
Selva Ventures, a venture capital firm focused on consumer brands that promote healthier living, closed its second fund at $34 million, TechCrunch reported.
With the new funding, Selva will invest in brands across categories including health, wellness, beauty and personal care. The fund expects to write checks of $1-2 million in seed and Series A startups, while assisting in areas like finance, operations and retail partnerships.
Backers of the second fund include Unilever Ventures, PagsGroup and Obelysk.
Nautica and Forever 21 owner Authentic Brands Group acquired the intellectual property of Hunter, a 160-year-old British outdoor lifestyle brand known for its Wellington boots.
With the deal, ABG appointed longtime partners Batra Group and Marc Fisher to execute retail and ecommerce operations, as well as continue to expand the brand in the UK and U.S., respectively.
“At the intersection of fashion and outdoor, Hunter introduces another elevated global brand to Authentic’s diverse Lifestyle portfolio,” said Authentic CEO Jamie Salter, in a statement.
Terms of the deal were not disclosed.
The investment arm of IKEA parent Ingka Group acquired the warehouse management software platform Made4Net.
As a result of the deal, Made4Net’s software will be deployed across IKEA’s 482 stores and fulfillment centers. Made4Net will continue to operate as an independent subsidiary of Ingka, with a headquarters in New Jersey. CEO Duff Davidson will remain at the helm of the company.
“Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers,” said Tolga Öncu, head of retail at Ingka Group, in a statement. “Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us.”
European ecommerce aggregator SellerX acquired Elevate Brands, a U.S.-based aggregator.
The combined companies will be known as SellerX Group. It will comprise a portfolio that includes 80 Amazon-native private label consumer brands in categories including sports and outdoors, home, mobile accessories, pets and consumables. The portfolio will span over 40,000 products.
With the deal, SellerX Co-CEOs Philipp Triebel and Malte Horeyseck will lead SellerX Group, while Elevate Brands cofounders Ryan Gnesin, Jeremy Bell and Robert Bell will remain in key leadership positions.
“This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure,” said Triebel, in a statement. “By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.”
Ecommerce aggregator Society Brands acquired Wolf Tactical, a tactical gear company.
Founded in 2017 by Tim Wu, Wolf Tactical makes products including DC belts, range belts to weighted vest and tactical backpacks.
"I started Wolf Tactical by myself as a side hustle with very limited knowledge of business and entrepreneurship. A combination of hard work and relentless learning allowed me to build it into a multi-million-dollar business," said Wu who will remain as brand president, in a statement. "With the help of Society Brands, I have access to untapped potential that I would not be able to achieve by myself.”