How Consumers Plan to Shop This Holiday Season, According to 84.51°
Consumers will be more likely to spend on premium items, be less brand-loyal, make side dishes from scratch and more this holiday season, according to the latest white paper from 84.51°, Kroger’s retail data and insights company.
The Holidays 2022 white paper details eight key shopper insights that give retailers insights into how customers will spend this holiday season. Research for the study included 400 consumers who shopped at one of Kroger’s 25+ banner stores from April-July of this year.
“Shoppers are shifting behavior to stretch their dollars in this inflationary environment, and they are in turn forcing brands to rethink their strategies to stay in the consideration set,” Barbara Connors, VP of strategy & acceleration at 84.51° told Store Brands. “This presents an opportunity for private label and value brands to capture trials with a new set of customers looking for value in new places. It also elevates the need for all brands to create data-driven plans that blend smart promotions and targeted media to create awareness and value for their target shoppers.”
According to the research, 19% of shoppers said they planned to purchase brands or products that are more expensive than what they typically buy, while 74% said they planned to stick to the products and brands they typically purchase. Despite this increase, most consumers will try to be frugal as a result of inflation increasing monthly grocery spending this year.
Overall, 84.51° found that consumers will be less brand-loyal this holiday season, continuing a trend that has correlated with ongoing inflation. Over half of those surveyed (57%) said they are looking for sales, deals and coupons to use this holiday season, and 45% of shoppers feel they don’t need to buy a specific brand.
When it comes to the main course for holiday meals, however, 84.51° data shows that the majority of consumers plan to be more brand-loyal. 30% of those surveyed said they plan to be brand-loyal when it comes to turkey, 26% for stuffing, 24% for ham and 20% for both cranberry sauce and pies.
As for the holiday side dishes, most consumers say they plan to make them from scratch, providing an opportunity for retailers to promote their private label pantry products. Mashed potatoes is the side dish most likely to be made from scratch this year (84%), followed by green bean casserole (79%), sweet potatoes (72%), cookies (69%) and gravy (52%).
“National and private label brands both have big opportunities to win this holiday season, as the cooking at home trend continues and 21% plan to have bigger gatherings this year. While some high-stakes dishes like turkey and stuffing garner high brand loyalty, nearly half of shoppers (45%) say they don’t feel the need to buy a specific brand of holiday food,” added Connors. “This opens the door for private label brands to steal more share of the holiday basket. In a time in which inflation is top of mind for shoppers, brands that deliver both inspiration and value to shoppers this holiday season will be the ones who make it in the basket and on the table.”
The full Holidays 2022 white paper can be found here.