Value-Seeking Consumers Willing to Change Shopping Habits
A survey of 1,000 U.S. adults from data-driven, technology-enabled services company Inmar Intelligence has found that 89% of shoppers have noticed an increase in prices of groceries and everyday household items that they regularly buy, and 68% have gone so far as to shop at a different store for these items because of these price hikes.
Recent figures from The Consumer Price Index showed that prices of “all items” have gone up 4.2% over the past 12 months — the largest such increase since September 2008. Further, the food index rose by 0.4% in April for both home-cooked meals and dining out. Consumers are now eager to leave home to do their shopping, whether because of the increase in vaccinations or the loosening of business restrictions, but they’re still seeking value. While slightly more than half (51%) of shoppers understand that times are hard and rising prices are a reflection of challenges faced, 41% of those surveyed by Inmar believe that brands and retailers should find solutions to prevent rising prices for consumers. If not, they’ll have no problem going to other stores to save money, as noted earlier.
Consumers have also been buying more store-brand products. Eighty-six percent of shoppers surveyed buy store brands to save money. They’re also joining loyalty programs and considering joining wholesale discount clubs to get the best deals available. Fifty-two percent of shoppers have joined more than one loyalty program offered by grocery stores because of rising prices, and 52% of shoppers are thinking about joining a wholesale discount club to save money.
“The rising cost of groceries in the U.S. has certainly not gone unnoticed by today’s consumers,” said Spencer Baird, EVP and president of Winston-Salem, N.C.-based Inmar Intelligence's MarTech division. “Shoppers are returning to physical stores and restaurants — but at the same time, still recovering from a global pandemic and expect to get value from their shopping experiences. The survey findings show just how quickly a consumer will change shopping habits in the name of cost savings. This should be a wake-up call for retailers, who must work to provide a seamless omnichannel experience with personalized promotions and coupons, to maintain and strengthen that customer relationship.”
