Which Grocery Stores Do Health-Conscious Shoppers Prefer?
If health-conscious consumers are discerning about what they buy, they are also choosy about where they shop. A new report from data science company dunnhumby affirms the buying power of this shopper segment and reveals their affinity for certain banners.
First, the buying power is real. According to dunnhumby, health-focused consumers are worth $285 billion to the grocery industry every year and represent a solid one-third of the U.S. population. There is inherent value in meeting the needs of these shoppers, too, as the research showed that retailers who over-index to this group enjoy an average 7% long-term sales growth; additionally, such customers often have incomes over $100,000, are younger and tend to have more children.
Dunnhumby’s report identified top performing retailers who appeal to these valuable shoppers, including Natural Grocers, Amazon Fresh and The Fresh Market. According to the research, 60% of these retailers’ shoppers are focused on health, versus 32% for the average U.S. grocer.
[RELATED: Natural Grocers Predicts How Consumers Will Live, Eat and Care for Themselves in 2025]
Other banners in the top 10 include Sprouts Farmers Market, Amazon, Trader Joe’s, Target, Walgreens, Fresh Thyme and CVS. The researchers also took a look at retailers with the highest share of mid-market loyalty among better for you customers, and ranked The Giant Co., Fry’s and Vons in the top three.
Breaking it down into store level, the report found that better for you customers tend to be drawn more than average to the seafood, ready-to-eat and fresh produce areas. The firm also points out that those three departments are the most associated with doing well in the high-priority areas of healthy choices, organic variety and sustainability.
Another takeaway from the report is the opportunity across the grocery sector to tap into health-conscious shoppers’ interests. According to dunnhumby’s analysts, stores who are well positioned in health with better-for-you shoppers also include operators with strong performance in heath areas that matter most.
"With health and wellness predicted to be the most critical trend for decades, retailers and brands have unprecedented opportunities to meet emerging customer needs." said Matt O’Grady, president of the Americas at dunnhumby. “As the grocery landscape continues to evolve, understanding and adapting to these health-centric consumer trends will be crucial for retailers and brands aiming to remain competitive in an increasingly wellness-oriented market.”
Dunnhumby included the largest 73 U.S. retailers in this report, using data from its Grocery Retailer Preference Index (RPI) and its Consumer Trends Tracker (CTT). The RPI contains over 70,000 consumer survey responses conducted annually since 2017 and the CTT has 14,000 consumer survey responses over several waves that began in April 2022.
