Food Insecurity and Inflation: What Consumers Want From Grocers
By Food insecurity remains a problem, and inflation worries are driving customer sentiment to the lowest levels in 50 years.[0] According to the latest figures from the Bureau of Labor Statistics, overall food prices in America increased 10.4% year-on-year in December, with grocery inflation jumping 11.3% in January from a year earlier.[1] Meanwhile, customer data science company dunnhumby recently found that Americans believe that grocers are earning a 35.2% net profit margin, 14 times higher than their actual net profit margin average of 2.5%.[2]
Further, dunnhumby’s Consumer Trends Tracker report for the third quarter of 2020 found that 31% of households said that they’ve skipped or reduced meals for financial reasons, while 39% of respondents younger than 44 have skipped or reduced meals.[3] Households with children at home are 8% more likely to do so than adult-only households.[0]
Short-term optimism is the highest among younger shoppers.[0] For 2023, 31% of consumers aged 18-34 believe that their finances and the state of the country will get better, compared to just 13% of consumers over 65.[4] For both 3-year and 5-year periods, age did not make a significant difference.[4]
eCommerce solutions that are easy to navigate and more accessible are desired by consumers.[5] Eighty-one percent (up 4%) of consumers say easy-to-shop websites and apps are important to them, and 78% (up 4%) want retailers to have more convenient delivery and pick-up time slots. Ease and convenience are particularly important for consumers aged 55 and over.[5] In this age group, 84% say easy-to-shop websites and apps are important to them and 81% want convenient delivery and pick-up time slots available.
Retailers are expected to assist consumers in selecting healthy options. 3% more consumers than before noted that it was very or extremely important for retailers to help them make healthy choices, with 44% of them reporting as such.[4] 48% of respondents said they select healthy foods when shopping, an increase of 2% from the previous survey. Furthermore, 40% indicated they read diet and nutrition information, a 2% rise from before, and 29% reported they purchase items for a particular diet while shopping.[6]
0. “Americans Believe Inflation is Worse Than Reality | News” Specialty Food Association, 15 Feb. 2023, https://www.specialtyfood.com/news/article/americans-believe-inflation-worse-reality
1. “Relentless inflation and surging grocery prices have these Americans on edge” Fox Business, 13 Feb. 2023, https://www.foxbusiness.com/economy/relentless-inflation-surging-grocery-prices-americans-edge
2. “Study: Shoppers think grocery stores are raking in cartfuls of cash” Winsight Grocery Business, 15 Feb. 2023, https://www.winsightgrocerybusiness.com/inflation/study-shoppers-think-grocery-stores-are-raking-cartfuls-cash
3. “Report: Consumers Believe Grocers' Profits, Inflation Much Higher Than Reality” Store Brands Magazine, 15 Feb. 2023, https://storebrands.com/report-consumers-believe-grocers-profits-inflation-much-higher-reality
4. “Your net profit margin? Consumers think it's way higher than it is.” Supermarket News, 15 Feb. 2023, https://www.supermarketnews.com/retail-financial/your-net-profit-margin-consumers-think-it-s-way-higher-it
5. “Americans Think Grocers' Profits Are 14X Higher, Inflation Twice as High as in Reality” Progressive Grocer, 15 Feb. 2023, https://progressivegrocer.com/americans-think-grocers-profits-are-14x-higher-inflation-twice-high-reality
6. “Trendspotting: Inflation worries are driving customer sentiment | Produce News” The Produce News, 16 Feb. 2023, https://theproducenews.com/headlines/trendspotting-inflation-worries-are-driving-customer-sentiment
