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Grocery shoppers shift to less-expensive brands amid pandemic

Consumers seek savings via more promotions, coupons, Inmar poll finds

Russell Redman

December 4, 2020

3 Min Read
Kroger_COVID_shopper_at_register.jpg
Sixty-one percent of shoppers reported switching purchase loyalty to less-expensive grocery brands since the COVID-19 outbreak, Inmar Intelligence said.The Kroger Co.

When it comes to brand choice, most U.S. grocery shoppers are opting for value during the coronavirus crisis, a new survey from Inmar Intelligence shows.

Of 1,000 consumers surveyed in November, 61% reported switching purchase loyalty to less-expensive brands since the beginning of the COVID-19 pandemic, Winston-Salem, N.C.-based Inmar said yesterday.

Shoppers polled were clear that they won’t hesitate to try new products to save money, Inmar found. Over 70% of respondents said they have actively searched for new types of grocery products or brands during the pandemic, and 83% aim to buy these new products again. Grocery customers said cost (cited by 67%) and sales/coupons (51%) were the chief reasons they purchased the new items and brands.

Inmar Pandemic Grocery Brands Survey-Chart 1.png

Other key findings: 39% of respondents said they shop for groceries more frequently and 43% have used a grocery store’s mobile app to place orders since the coronavirus outbreak began.

“COVID-19 continues to impact today’s shoppers, who are searching for new ways to save money, especially in terms of groceries,” according to David Mounts, chairman and CEO of Inmar, a provider of data-driven technology services for retailers and manufacturers, among others. “The survey findings suggest that shoppers expect retailers to provide more promotions and have expressed their willingness to try new brands because of it. So it is crucial for retailers and CPG brands to provide cost-savings opportunities, whether this be coupons or other promotional activities to maintain store traffic and protect customer loyalty.” 

Related:U.S. consumers preparing for second wave of stockpiling

Indeed, 80% of shoppers surveyed indicated they’re actively seeking grocery deals — including via coupons and promotions — while 92% think grocery brands should be doing more to bring savings to consumers. And their shopping behavior bears that out, as 59% of respondents shop more frequently at stores that provide coupons or promotions, which Inmar noted are more likely to earn repeat business. 

“With additional stimulus still a question mark, and likely a ‘2021 thing,’ the economic pressure consumers are already feeling is growing, alongside increased consumer demand for brands and retailers to help them stretch their grocery budgets,” Holly Pavlika, senior vice president of corporate marketing at Inmar, said in a blog post yesterday. “Promotions have not been a priority for many trading partners during these past months, but data from our latest shopper survey shows that needs to change.”

Inmar Pandemic Grocery Brands Survey-Chart 2.png

In the current environment, it behooves retailers and brands to engage with customers to provide “personalized and consistent” promotions, and to some extent they’re falling short, Inmar said. Forty percent of shoppers polled report fewer coupons being available, even though 36% said sales and specials influence which stores they shop.

Related:Nearly 80% of U.S. consumers shopped online for groceries since COVID-19 outbreak

Meanwhile, 44% of consumers report that the average number of coupons they redeem weekly at a grocery store has changed since the pandemic started, and 41% have used a grocery store’s mobile app to clip coupons. 

Pavlika pointed out that both retailers and manufacturers are experiencing brand loyalty issues, as pandemic-driven product trial during the earlier stockpiling phase “complicated” relationships between shoppers and CPGs. 

“In order to retain these new loyalists or win them back to their earlier favorites, marketers are going to have to show shoppers some love when it comes to price,” she said. “Everyday price competition isn't an option for every retailer, but periodic promotions will go a long way in cementing and repairing relationships.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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