Online grocery in Sweden on a higher level despite Year on Year decline

1. Inflation driving growth

Grocery market in Sweden in January grew rapidly, by 9,5%. That growth was driven by inflation (19,6%) against which the market is trailing significantly. Of the selling channels, stores grew by 11,5%, whereas online declined by -18,5%.

2. Online on a high level

Despite the decline in sales, online share of all grocery retailing in Sweden reached 4,9%. That is an increase for the longer term post-pandemic level for online.

Since the pandemic restrictions were relaxed, online share of all groceries has varied between 2,7% and 4,5%. Also compared to Januaries of previous years, 4,9% is rather high level. It is 53% higher than the pre-pandemic (1/2020) 3,2% share of the market.

3. Resilient home delivery

The decline of online was especially steep for Click & Collect, which declined by -30%. This drop has lead the Click & collect share of all groceries to come down from 3,2% to 2,1%. Home delivery has been more resilient as it’s share has declined from 3,2% to 2,8%.

Will this change in customer behavior benefit most Mathem as well ICAs Stockholm region warehouse? Both of them are dedicated to home delivery only, whereas are online businesses seem to rely more or less Click & Collect, which is more convenient for the retailer.