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Rising grocery prices gnaw at shopper loyalty

Inmar, Shopkick polls find consumers ready to switch stores, brands

Russell Redman

May 21, 2021

4 Min Read
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More than 68% of U.S. consumers surveyed by Inmar Intelligence said rising prices for groceries and everyday household items led them to shop at a different store.Kroger

Escalating food and grocery prices have many U.S. shoppers rethinking their loyalty to retailers and brands, surveys by Inmar Intelligence and Shopkick reveal.

Of 1,000 U.S. adults polled on May 10 by Inmar, 89.7% reported seeing an increase in prices of groceries and everyday household items they buy regularly. The price hikes have led 68.4% of respondents to shop at a different store for those items. 

What’s more, shoppers expect help in dealing with rising prices. Winston-Salem, N.C.-based Inmar found that although 51.6% of those surveyed understand rising prices reflect current challenges as the nation climbs out of the COVID-19 pandemic, 41.4% think retailers and brands should find solutions to rein in pricing for consumers, who indicated that they will switch stores to save money.

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Indeed, value-focused retailers appeared to gain grocery shoppers since the onset of COVID-19. When Inmar asked consumers where they primarily shopped for groceries before the pandemic versus where they now shop, retailers that gained included Aldi (5.1% before pandemic/8.1% currently), Target (6.3% before/7.1% currently), Meijer (2.2% before/2.9% currently) and Albertsons Cos. (8.2% before/8.7% currently).

Among consumers surveyed by Inmar, retailers seeing decreases as the primary grocery shopping venue since the start of the pandemic included The Kroger Co., Ahold Delhaize, Whole Foods Market, Schnucks Market, Publix, Wakefern supermarket banners (including ShopRite) and H-E-B.

Related:Study: Most U.S. consumers to stick with eating at home post-pandemic

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Savings was a key factor when consumers were asked what would lead them to change the store where they regularly shop for groceries and daily staples. Among the reasons cited were the amount of incentives offered (24.4%) and loyalty program (15.6%).

According to latest data from the U.S. Department of Labor, the Consumer Price Index rose 4.2% (unadjusted) over the last 12 months through April, the largest 12-month increase since September 2008. That includes a 2.4% uptick for food pricing, reflecting increases of 1.2% for food at home and 3.8% for food away from home. On a seasonally adjusted, month-to-month basis, the CPI edged up 0.8% in April, including a 0.4% increase for food (0.4% food at home, 0.3% food away from home).

One strategy that shoppers have embraced to save money amid rising prices is to buy more store-brand products. Of consumers polled by Inmar, 86.9% are putting private-label items in their shopping carts, with 56% saying they consider store-brand items cheaper than national brands. Also to help thwart price hikes, 61.7% of shoppers have joined more than one loyalty program offered by grocery stores, and 52% said they’re considering joining a wholesale discount club to save money on purchases, reported Inmar, a provider of data-driven technology services for retailers and manufacturers, among others.

Related:PLMA: Private brands uphold market share despite pandemic

“The rising cost of groceries in the U.S. has certainly not gone unnoticed by today’s consumers. 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,” according to Spencer Baird, executive vice president at Inmar and president of its MarTech division. “The survey findings show just how quickly a consumer will change shopping habits in the name of cost savings. This should be a wakeup call for retailers, who must work to provide a seamless omnichannel experience with personalized promotions and coupons to maintain and strengthen that customer relationship.” 

Rewards app provider Shopkick found similar price sensitivity among grocery shoppers. In a Shopkick online survey of more than 19,000 U.S. consumers May 14 to 17, 86% said they’re experiencing price increases on everyday goods and services, namely groceries (96%), gas (93%t), eating out (57%) and apparel (42%). 

Redwood City, Calif.-based Shopkick noted that respondents reported price hikes across grocery categories, including meat and seafood (cited by 79% of shoppers), dairy (76%), fresh produce (71%), paper products (66%), beverages (60%), cleaning supplies (59%), personal care items (45%), bread and bakery (43%), cereal (40%), canned goods (37%), snacks (35%), and pasta and grains (26%). 

As a result, 59% of those polled said rising prices are pushing them away from their typical grocery choices and toward less expensive options. In turn, 69% noted that brand names have become less important, compared with 85% who said so at the start of the pandemic. 

That’s lifting the popularity of private label, according to Shopkick. Sixty-three percent of consumers said they’re now selecting less-expensive private brands. Also, 71% of respondents indicated they will continue to buy private labels even if prices return to normal levels.

Underpinning such decisions is the high consumer awareness of rising inflation. Shopkick found that of the 77% of consumers aware of increased inflation rates, just 4% expressed no concern about the risk of continued inflation. And even though the Federal Reserve said the inflation uptick will likely be temporary, 54% of survey respondents said they’re very concerned. In response, 42% plan to tighten their overall budgets slightly and 41% plan a significant budget tightening. Seventy-two percent of shoppers reported that their income hasn’t increased over the past year.

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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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