When buying groceries, millennials value cost savings above all else

Chicago-based Retale, a location-based mobile advertising platform for retailers and brands, announced the results of its first annual “Retale Millennial Grocery Report” — a commissioned study examining grocery shopping preferences among millennial consumers (18-34 years old). Retale polled 1,000 millennials across the United States in early May.

Retale evaluated recessionary impact on grocery buying, specifically, among survey respondents. Fifty-seven percent of millennials polled agreed that they had been personally affected by the Great Recession. Forty-three percent disagreed. When comparing older millennials, aged 26-34, to younger millennials, aged 18-25, older millennials felt more affected. Sixty-four percent of older millennials agreed they had been affected, while only 46 percent of younger millennials agreed.  

When asked which activity they were most likely to cut spending on, as a result of the recession’s impact, 36 percent cited “eating out,” 30 percent said “entertainment,” and 21 percent said “buying clothes.” Only 8 percent said they would cut spending on “buying groceries,” Retale said.

“Like most age groups, millennial consumers have felt the recession’s impact,” said Pat Dermody, president, Retale. “According to our data, to counteract it and save, they’re dining out less and opting to eat at home more. This is why there hasn’t been a sizable decline in grocery shopping, post-recession. Lost restaurant trips should ultimately benefit grocery retailers.” 

When asked how often they shop for groceries, “two to three trips a month” was the most popular choice (34 percent), followed by “once a week” (29 percent); “once a month” (15 percent); “two to four trips a week” (14 percent); “less than once a month” (6 percent); and “every day” (3 percent). For each trip, on average, 20 percent of millennials spend 0-$49; 37 percent spend $50-99; 35 percent spend $100-200; and only 9 percent spend more than $200, Retale said. 

Despite the ways the economy has managed to recover since the recession, millennial consumers are still taking a practical and cost-conscious approach to buying, Retale noted. When asked to choose the three most likely factors in picking a grocery store, the top response was “lower costs or opportunities to save” (50 percent). “Availability of locally-grown or organic products” (38 percent) was the runner-up, followed by “store is close to my house or workplace” (34 percent); “technology that makes research and shopping easier” (31 percent); and “I shop based on specific recipes I’m interested in making” (28 percent).

Similarly, when asked to describe their “grocery shopping style” in one word, “thrifty” was the most popular choice (34 percent). “Local” (24 percent) and “foodie” (23 percent) rounded out the top-three, Retale added. 

“At the end of the day, when it comes to buying groceries, millennial consumers value cost above all else,” Dermody noted. “Local or organic, store proximity or technology for convenience — they all come in second to savings. Grocers need to keep this in mind when considering how to best market and sell to this audience.”

To read the full "Retale Millennial Grocery Report," visit: www.retale.com/blog/the-retale-millennial-grocery-report/.