Frustrated by High Prices, Shoppers Focus on Value, Convenience and Personalized Experiences
A recent survey from R.R. Donnelley & Sons Co. (RRD) has found that consumers across key demographic groups have changed their shopping habits in response to high prices – opting for value over brand loyalty, favoring lower-priced alternatives, seeking bargains and eschewing products considered too expensive. Based on a survey of more than 1,800 adults in the United States, RRD’s annual “2024 CPG + Grocery Consumer Report” outlines current consumer sentiment and behaviors, as well as their priorities and expectations while shopping.
According to the latest report, brand loyalty is no longer a guarantee, with just 55% of shoppers saying they’ll remain loyal to the store they shop at most often – particularly Baby Boomers (61%) and affluent consumers (64%) – while 45% would consider changing stores for more savings, particularly Millennials (50%).
“Consumers are becoming more judicious with their purchasing decisions, in large part due to the continued impact of external factors, including inflation,” said Beth Johnson, a grocery industry expert and director of client strategy at Chicago-based RRD. “These factors are testing the loyalty of shoppers, making it more important than ever for marketers to rethink how they engage with buyers. Brands will need to meet shoppers where they are by emphasizing value and savings to hold their attention.”
[Read more: What Grocery Shoppers Want: Convenience and Fresh Food]
Among the key findings from the survey:
88% of consumers expressed frustration with higher prices across categories, including groceries, gas and restaurants. This sentiment was most associated with grocery shopping overall (86%), spurred by the rising costs of food and beverages (80%). This was the case across all age groups and income levels, with 87% of Baby Boomers and 79% of households with $100,000 or more in income expressing concern or frustration over food and beverage prices. Price sensitivity continued to be a universal focus, offering brands both a challenge and an opportunity to meet consumers’ needs.
In response to rising prices, consumers are adjusting their shopping behaviors by stocking up during sales (41%), buying fewer items (37%), switching to cheaper name brands (37%), switching from name brands to private label brands (35%), using more coupons and discounts (34%), and sticking to their shopping lists (32%). Coupon redemption in mass and variety/discount stores grew by 9% and 37%, respectively, compared with the first half of 2023, indicating the importance of brands offering value-oriented options to consumers.
While price was foremost for consumers, it wasn’t the only factor influencing their shopping choices. In regard to store selection, 68% of consumers prioritize convenience and closeness to their homes, with Baby Boomers valuing closeness the most (76%). A certain contingent of shoppers (32%) also prioritize an engaging shopping experience, even if the store is farther away than others – particularly Gen Z (39%), Millennials (37%) and parents (38%).
Shoppers made clear what they want from their grocery stores and CPG brands: convenience, value and personalization. Consumers said that they prioritize a range of factors, including relevant deals (59%), personalized discounts (55%) and tailored recommendations (52%). Staying local was also important to shoppers, with 57% preferring to shop at stores that carry locally grown, raised or produced products, and 56% saying that they’d like to see more advertising for products manufactured or grown close by. For retailer or brand selection, fair prices were identified as the biggest priority for consumers (58%), up five points from last year. High-quality products (45%) and coupons and discounts (41%) were also ID’d as influencing factors for shoppers. Notably, data privacy (39%) is also shaping consumers’ decision-making, up 19 points from last year.
In addition to consumers, RRD surveyed more than 200 decision-makers from U.S.-based grocery, drug and mass retailers. All respondents were involved in processes related to their organizations’ marketing, digital, omnichannel, e-commerce, in-store technology and merchandising functions.
