Grocery prices continue to surge rising 0.5% from December 2024 to January 2025, which is the largest month-over-month increase since 2022. Budgeting to accommodate these rising prices, consumers are identifying and focusing on budget-friendly alternatives and replacements to ensure their grocery bill remains as affordable as possible. In doing so, these shoppers are behaving differently than they once did. Here are four attributes of consumer behavior during inflation that grocers need to understand.
They’re Feeling Frustrated
Shoppers are feeling fed up with rising prices and the first step to addressing these frustrations is to understand them. Research found that 86% of consumers are feeling frustrated by rising grocery costs. All shoppers are feeling anxious, and many are grappling with finding ways to feed their families long-term if prices remain high (or go higher). Even more affluent shoppers are concerned and may be more likely to consider and purchase more budget-friendly options or skip out on items they deem inessential. Around 49% are cutting back on items like snacks to achieve this.
They’re Stocking Up More
While they’re buying less, they are also buying more. Behaviors are changing to focus on a buy more now, save more later mentality. Around 41% of shoppers are choosing to stock up on sale items. This means it is crucial for grocers to carefully monitor inventory and stock efficiently to prevent false out-of-stocks and missed sales revenue. The right merchandising solutions can keep these discounted items front-facing and organized to ensure product visibility. Taking “stocking up” a step further, more shoppers are opting to become warehouse club members—like Costco, Sam’s Club and BJ’s Wholesale Club.
They’re Less Brand Loyal, More Price Driven
Name-brand choices are often more expensive, and inflation shoppers are instead opting for private label options (meaning more profit opportunity for grocers). Of surveyed shoppers, 35% have made the switch from name brand to private label to save on costs. However, 34% are relying more heavily on coupons which can lead them back to the name-brand option if the price is right. For shoppers enrolled in loyalty programs, grocers can see the types of products that loyal shoppers purchase frequently and provide personalized savings to encourage purchases at a more desirable price point.
Experience Still Matters
Despite frustrations, the in-store experience still matters to shoppers. While Baby Boomers are prioritizing grocery stores closest to home 37-39%, of Gen Z, millennials and parent shoppers report they will go out of their way to shop at stores that are more fun, different and enjoyable. Fostering a pleasant shopping experience comes down to many factors from smooth, functional shopping carts to organized, easy-to-shop products. How can your store remain the store of choice? By creating the best in-store experience.
Retail Space Solutions specializes in merchandising systems that elevate the appearance of products in frozen, meat, dairy, snack and produce aisles. To get started, Request a free online quote using our online quote tool or browse our products to learn more.
For another fun, consumer friendly merchandising solution, check out bulk products from our sister brand Trade Fixtures.