Acosta’s Post

Today’s average grocery shopper visits up to five banners a month, per 2023 data from FMI- The Food Industry Association. That increase in cross-shopping behavior — where customers visit and spend at various stores with the same grocery budget — is driven by a need for more value. And it’s enabled by continued expansion from national retailers and big-box stores, as well as dollar stores expanding their grocery mix. Why does it matter? The costs to operate a grocery store have risen faster than the prices they charge, putting independent and regional grocers between a rock and a hard place. Given consumers’ price sensitivity, grocers are limited in how much they can raise their prices without encouraging even more shoppers to compare items across stores. And, considering the tight margins grocers are working with today, lowering prices could have a significant negative impact on their bottom line. I think this recent dive into what’s behind recent grocery shopping behavior changes is a smart way to frame the stagnancy we’re seeing across the industry right now. What are your thoughts?  https://lnkd.in/gsssrkHD #groceryindustry #consumergoods #inflation #loyalty

The days of getting the weekly groceries at a single store are long gone with the trend of shopping at multiple stores growing. 🛒 Consumers are increasingly hitting up multiple grocery stores as they stock the fridge to save money and find exclusive items. Blame it on inflation and the rise of the private store brand. Learn more in my latest story for Axios with Mimi Montgomery. How many stores are you shopping at and is that number growing? Why do you personally shop at multiple stores? I'll start: My family shops at Costco, Trader Joe's, Aldi, Walmart, Target, Publix, Sam's Club and BJ's Wholesale for groceries. We shop at multiple stores to save money and for exclusive items. 🛍

U.S. grocers are adapting to #consumer shopping patterns in the face of #inflation. As households split their purchases among a wider variety of stores, #grocers are narrowing their product offerings rather than trying to be the jack of all trades in terms of product selection. This shift is prompting changes across #retail #supplychains, with stores focusing more on their private-label brands. According to Numerator, consumers bought groceries from an average of 20.7 different retailers over the past year, up 23% from four years ago. Sales of store brands were up 15% for the 52 weeks ended March 23 over the same time in 2022, according to AlixPartners.

Our survey, featured on Retail Insider, highlights the rise in grocery costs, a concern for many Canadians over the past year. luc dumont, CAIP, VP of Insights, points out, "Consumers are switching up their shopping habits, heading to more budget-friendly stores. So, keeping people within your ecosystem is important." Read the full article to learn more about our study and key highlights. 👉 https://lnkd.in/gb5ByT4R #Leger #RetailInsider #MarketInsights #Groceries #Inflation

Great Information! While the focus and understanding of your Shopper are essential and front and center, Retailers' understanding of the cost to serve is paramount, especially as these costs (labor, COG, utilities, etc.) continue to rise. It seems like it's time to turn back the clock, to the days of Category Management, focusing on the 4P's - Product/Assortment, Price, Promotion, and Placement/Space, and understanding cost-to-serve DPP/ABC (Direct Product Profit and Activity Based Costing). Retailers and Brands alike cannot afford to ensure every dollar spent drives unit (consumption) and at what cost.

📣 Shout-out to our Commerce Intelligence team for their proprietary research on Gen Z's bulk buying habits featured in The Wall Street Journal. Realtime insights that move at the speed of commerce underscore everything we do here at AUC to drive shopper-centric brand-building. 🚀 Gen Z's latest shopping trend finds them in the aisles of bulk retailers Costco Wholesale and Sam's Club. Our survey of more than 1,000 shoppers found nearly 40% "between the ages of 25 and 34 split bulk groceries with friends, neighbors, roommates and family." A full third of respondents indicated they shop this way. https://lnkd.in/gUW8PiQn

🛒✂️ Nostalgic for the days when grocery shopping was a fun challenge filled with couponing and deal-hunting? You're not alone! Inflation and less enticing deals have dampened the excitement for many. A recent Advantage Solutions survey of 8,000+ shoppers reveals a shift in priorities: affordable prices and clean, well-stocked stores are now top of mind, while extra amenities have become less important. Despite the changes, over half of shoppers are still actively using money-saving strategies, with 53% considering sales and promotions, and 65% shopping around for the best prices. Good news is on the horizon, though! Price hikes may slow down, and retailers are responding with more value-focused marketing and products. Hang in there, deal-seekers – grocery shopping might just become a thrill again! 🛍️💡 Consider TPG Rewards Inc's Barcode Buck$ to help reach value-focused consumers on your brands. Want to learn more? Reach out to us to learn more about Barcode Buck$ #GroceryShopping #Inflation #Deals #Savings #ConsumerTrends

“'Location intelligence shows that overall, visitors to grocery chains last year tended to come from areas with slightly higher median household incomes than the nationwide average,' the Placer.ai report says." Contrary to its budget-friendly reputation, Trader Joe's draws customers with the highest median income of $97,500 among major grocery store chains. Patrick Cooley features Placer.ai's "The Grocery Sector in 2023: An End-of-Year Recap" report in this recent The Messenger article. Learn more here: https://lnkd.in/dy_FvRnA #foottraffic #foottrafficanalytics

"Placer.ai’s data shows that visitors to grocery chains last year, compared to other retail channels, tended to come from areas with slightly higher median household incomes (HHIs) than the nationwide average. The median HHI for grocery shoppers was $73,900 compared to the nationwide median of $69,500." When it comes to grocery chains in the U.S., Kroger stands as the leader. Chain Store Age's Zachary Russell features Placer.ai's "The Grocery Sector in 2023: An End-of-Year Recap" report in his recent article. Here's what to know: https://lnkd.in/d7MzB-jz #foottraffic #foottrafficanalytics

Target plans to cut prices on about 5,000 popular items across its assortment. It has already reduced the prices of 1,500 items and more reductions will continue through the summer. Target’s price reductions are a reaction to the fact consumers are hard pressed and are shopping around more for essentials and everyday grocery items. Our data show that across last year Target lost spend to more value focused players like Walmart and Aldi, especially in non-discretionary categories. Target needs to stem this tide and build stronger value perceptions. These price cuts, along with the recent introduction of the Dealworthy value range, help to achieve this. Whether they will be enough remains to be seen. Target has a growing middle-of-the-road reputation on price when it comes to essentials; so even with lower prices on some items consumers may still see it as a place for top-ups rather than as a place to do a full, great value shop. There are also plenty of issues around the nature of the grocery offer and increasing friction of the shopping experience that need to be addressed alongside the value angle. Thanks to Grocery Dive for including more of my views in the article linked in the comments. #retail #retailnews #price #inflation #grocery