Online grocery market cools, but some Chicagoland investment continues

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Online grocery market cools, but some Chicagoland investment continues
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As demand for online grocery shopping slows, some quick-delivery startups have struggled. But Chicago-area investments from established chains suggest the trend still has staying power post-pandemic.

Pickup associate Jordyn Jenkins collects grocery items for an online purchase, Aug. 18, 2022, at Mariano’s Bucktown.

The online grocery market, which boomed in the early days of the pandemic, is cooling off as shoppers return to pre-pandemic routines and rising food costs prompt many people to reexamine their spending. Pickup associate Jordyn Jenkins wheels her cart down an aisle as she collects grocery items at Mariano’s Bucktown.

According to eMarketer data, the percentage of U.S. adults using grocery delivery doubled from 15% in the fourth quarter of 2019 to 31% two years later. Now that online grocery platforms have picked the “low-hanging fruit” of people easily persuaded to try online grocery shopping, that growth has tapered off, Goldman said.

Though grocery prices in the Chicago area declined nearly half a percent in July, they were up 12.7% since a year ago, according to the Bureau of Labor Statistics.

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