Online grocery sales surged 15.5% in the four weeks ending October 4, while in-store sales dropped 2.8% during the same period, according to data from Circana. This trend reflects a broader shift in consumer behavior, with online food and beverage sales rising more than 15% while physical store sales declined by nearly 3% during the same timeframe.
The research firm’s U.S. CPG Demand Signals report highlights contrasting trends in consumer food and beverage purchases. Overall sector sales dipped slightly, falling under 1%. Circana’s findings show the challenges grocery companies face as they handle a environment where shoppers are increasingly cautious with their food budgets, aiming to balance growth with economic realities.
Shoppers focus on reducing waste, balancing price tiers, and choosing private labels. Store brand sales rose, while national brands saw a 1% decline. Perishable items like dairy, meat, and produce struggled, with produce particularly affected by earlier issues, including the cyclospora crisis. Nonperishables, however, grew. Circana noted that consumers are cutting excess without sacrificing quality, opting for smaller pack sizes and balancing between premium and budget options.
The rise in online grocery shopping is further supported by Brick Meets Click, a consultancy reporting a 20% increase in digital grocery sales during the third quarter of 2026. Delivery sales, up over 30%, drove most of this growth, with pickup services also rising. Brick Meets Click attributed about three-quarters of the online sales increase to delivery, while pickup services saw mid-single-digit growth.
Traditional grocers face challenges as in-store sales stagnate or decline while digital sales climb. Kroger, for example, saw flat comparable-store sales but a 20% jump in digital operations. Ahold Delhaize experienced similar trends, with U.S. in-store sales rising less than 1% compared to 14% e-commerce growth. Albertsons reported negative same-store sales but an 11% increase in digital sales. These retailers are grappling with the need to leverage their physical stores to compete against e-commerce giants like Amazon and Walmart, which dominate the digital space.
