Online Grocery Stores Just Registered a Record Price Drop

Light at the End of the Tunnel

Soaring grocery prices have been a massive headache for American families in recent years. But there is light at the end of the tunnel: Online grocery prices just registered their biggest monthly price drop on record.

Prices for online food shops fell 3.7% month-over-month in August, according to the Adobe Digital Price Index(ADBE), the largest monthly decline since Adobe began collecting data a decade ago. It marked two straight years of falling prices online.

Buying Groceries Online

Food prices have surged dramatically since 2020 in the face of supply chain issues and rising labor costs. The high costs, along with pandemic-era social distancing protocols, helped popularize grocery delivery over the traditional supermarket.

Popular options include Walmart+ (WMT) and Amazon Fresh (AMZN), both of which offer members free grocery delivery and other benefits for a set annual fee.

Besides the big retailers themselves, there is also Instacart, newer companies like Boxed, which helps members buy wholesale products online in bulk without the need for a membership, and regional players, such as Fresh Direct in the New York City area. For Americans who don’t want to make the trip to the store, there are plenty of options.

Compare When You Shop

Online grocery shopping represents some 12% of total national grocery sales, according to Bloomberg. But that figure could continue to grow.

Cost-conscious shoppers increasingly compare prices between stores before making a buying decision, which is easier when it’s about comparing one app or website to another. And given the new data, either way, online may just be cheaper.

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