Survey: U.S. consumers are switching stores based on rise in grocery prices
Nearly 7 in 10 American shoppers are switching grocers, choosing lower prices over loyalty, according to a new survey from Inmar Intelligence — and the trend is benefitting store brands.
The data and technology company surveyed more than 1,000 U.S. consumers and found that nearly 90% have noticed an increase in prices on groceries and household items that they buy regularly, with 68% going as far as saying they’re choosing a different store because of it.
Switching stores based on value is certainly good news for retailers with a strong, value-based own brand. The survey found that 86% of respondents purchase store brand products to save money.
The United States Bureau of Labor Statistics and its Consumer Price Index recently reported a price increase by 4.2% over the last year on “all items,” and the food index registered a .4% increase last month.
Winston-Salem, N.C.-based Inmar’s survey showed understanding from American shoppers, with more than half saying they understand why prices are on the rise but 41% of respondents also believe that brands and retailers should find solutions to prevent price gouging.
Store brands are one solution and shoppers are also looking to loyalty programs and joining club stores, the company said. The survey found that 52% of shoppers have joined more than one loyalty program offered by grocery stores due to rising prices and 52% of shoppers are looking into 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, executive vice president and president of 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.”