Food and Drink E-Commerce in the US

2020 IMPACT

COVID-19 triggers unprecedented growth in food and drink e-commerce sales

Even as some states and municipalities in the US imposed strict lockdown measures during the initial surge of the COVID-19 pandemic in March and April of 2020, grocery stores - classified as essential retailers everywhere in the country - remained open to walk-in traffic. As a result, most US grocery retailers saw their sales spike - in part due to the implosion in the US consumer foodservice sector, as temporary restaurant closures forced consumers to prepare more of their meals at home.

Instacart, once a niche brand, emerges as an indispensable service provider

Perhaps no companies operating within the food and drink e-commerce space have seen their fortunes improved by the COVID-19 pandemic as much as hyperlocal delivery services, with consumers in many countries turning to these companies to have groceries delivered from their favourite local supermarkets. With demand for grocery delivery hitting all-time highs, legacy grocers that did not already operate their own proprietary delivery services - and may have been reluctant to hand over a slice of their sales to third-party service providers in the past - found themselves scrambling to partner with hyperlocal players in 2020 to avoid missing out on the online grocery sales boom.

Target reaps the dividends of adding perishables to its curbside pick-up service

Although curbside pick-up service was pioneered in Western Europe by retailers such as Carrefour and Auchan, the service has found a more receptive audience in the suburban and rural expanses of the US, where access to a vehicle is virtually a requirement. Curbside pick-up allows grocers in these areas to service digital orders for essentially the same number of customers as delivery but at much lower cost.

Files are delivered directly into your account within a few minutes of purchase.