Shoppers Are Splitting the Bill When Buying in Bulk
Consumers aren’t just store hopping, using digital coupons and embracing private label items as they seek to get more value out of their grocery budgets. New research from St. Louis, Mo.-based consulting firm Advantage Solutions shows that more people are buying large and bulk products and splitting those orders with others.
According to the company’s recent survey of 1,000 shoppers, a third of them report they are currently engaged in that behavior as a way to cut their overall bill. More than four in 10 said they would consider doing that as a way to manage their grocery costs.
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“It’s definitely economically driven,” Jill Blanchard, president, enterprise client services at Advantage Solutions, told Progressive Grocer in a recent interview. “The effects of inflation have been cumulative and consumers are doing everything they can.”
Larger and bulk packages, including family-sized items and products from club stores, tend to be lower in price per unit. Accordingly, some shoppers are getting into their own personal distribution process. Advantage Solutions’ data shows that 78% of those taking part in this practice are doing it with family members, while 42% are divvying up purchases with friends and neighbors and 12% are getting into the habit with roommates.
The potential for such behaviors is even greater with the cascade of technology innovation. “I don’t think we are far from a time when they are is an app for that,” said Blanchard, citing a mobile app developed in South Africa that enables such buying and dividing.
Such capabilities emerge with need, she added, using a ride-share analogy. “One of the things I say is that we never thought we’d ride in a car driven by a perfect stranger,” Blanchard pointed out.
Many bulk and large items lend themselves to such a divide-and-conquer approach to grocery shopping. The survey found that fresh meat and seafood are tops among such purchases, with 44% of consumers mentioning those products, followed by pasta and rice (43%), beverages and snacks (39% and 38%, respectively). About a third of respondents said they buy and split cereal and breakfast foods, fresh produce and frozen foods.
Interestingly, size has become a price-related purchase driver on the other end of the packaging spectrum. “Smaller sizes are on the rise, too. It’s a higher price tag per ounce, but some households on fixed incomes can’t afford to buy large packs,” Blanchard said.
In a competitive market and against the cacophony of grocery inflation, food retailers can appeal to shoppers looking for such solutions. Blanchard underscored the fact that grocers, especially in the food channel, are increasingly keen on getting more shoppers in their door and online and capturing their share of households, and can leverage their marketing and promotional tools. “Is there something they could do with this as part of their loyalty program?” she asked.
