Demand for grocery delivery cools as food costs rise

Karen Raschke, a retired attorney in New York, started getting her groceries delivered early in the pandemic. Each delivery cost $30 in fees and tips, but it was worth it to avoid the store.

Then this spring, Raschke learned her rent was increasing by $617 a month. Delivery was one of the first things she cut from her budget. Now, the 75-year-old walks four blocks to the grocery store several times a week. She only uses delivery on rare occasions, like a recent heat wave.

“To do it every week is not sustainable,” she said.

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Raschke isn’t alone. U.S. demand for grocery delivery is cooling as prices for food and other necessities rise. Some are shifting to pickup — a less expensive alternative where shoppers pull up curbside or go into the store to collect their already-bagged groceries — while others say they’re comfortable doing the shopping themselves.

Grocery delivery saw tremendous growth during the first year of the pandemic. In August 2019 — a typical pre-pandemic month — Americans spent $500 million on grocery delivery. By June 2020, it had ballooned to a $3.4-billion business, according to Brick Meets Click, a market research company.

www.msn.com/en-us/money/other/demand-for-grocery-delivery-cools-as-food-costs-rise/ar-AA10q8lF?ocid=msedgntp&cvid=ab4ddb52b99d432cab0e33d5dd599646

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