Why Consumers Are Taking Time to Plan Their Grocery Shop
Consumers may be changing where, when and how they shop in response to elevated prices and the growing number of online and physical store options, but they are not doing so flippantly and are carefully weighing decisions. That’s one takeaway from a recent webinar on 2024 mid-year promotion trends and shopper insights presented by data and tech company Inmar Intelligence.
In a competitive marketplace and a climate in which inflation is easing but still above norms, Inmar’s data shows that shoppers are spending more time thinking about what to buy and what to make. “We hear people saying that prices have slowed, so some are thinking that things must be getting easier for grocery shoppers. But the reality is that we need to look at things from a higher level,” said Bill Beyea, senior manager, client insights and analytics at Inmar. “Shoppers are paying $50 more for groceries per week right now than they were just five years ago. Even if salaries or income have increased, it doesn’t mean people have gotten over the sticker shock.”
[RELATED: Inmar Expands Partnership With Northeast Grocery to Build Retail Media Network]
Accordingly, consumers are dealing with sticker shock by being more mindful about purchases. For example, 66% of shoppers said they spend 30 minutes or more preparing for their regular grocery trip. More than a quarter (27%) spend a half hour to an hour in prep mode while 25% take one to two hours to plan meals, compare prices and search for discounts and coupons, among other activities.
A focus on value, along with the trend of cooking and eating more at home, are contributing to the more thoughtful and time-consuming meal planning. More than half (54%) of those surveyed said they plan meals for the week as they plan for their grocery trip and 35% are looking for inspiration.
In addition to seeking out meal ideas, two thirds of consumers said that they are creating shopping lists based on deals and discounts. Inmar’s data supports the notion that shoppers are using digital and printed flyers to compare prices and reveals that more than a third spend time planning trips to multiple retailers. Digital coupons are now outpacing printed coupons in usage, Inmar's intelligence confirms.
Retailers and brands who want to capture a share of these thoughtful shoppers’ grocery budgets can reassess traditional approaches and definitions. “I encourage us all to rethink shopper loyalty. When we think about shopper loyalty in our industry, we typically think about shoppers being loyal to a brand or retailer. We really need to think about how we are earning shoppers’ business,” pointed out Pete Medina, director, customer insights at Inmar. “How do we actually earn the right to be on their list? In other words, shopper loyalty is an outcome, not an input.”
To earn that business, grocers and CPGs can provide tailored savings and solutions to shoppers, through personalized loyalty programs and other tools, the analysts added.
In other news, Inmar recently announced that it is expanding its digital incentive network into the convenience store channel. The company is teaming up with Axonet to provide incentives to tens of thousands of store locations.
