Shoppers are impacted by rising grocery prices and shrinking package sizes

New York City -- A survey released Tuesday by Deloitte found that 87.7% of shoppers believe prices in food stores are escalating and 74% say the size of some packaged goods is smaller.



According to Deloitte’s new “2011 Consumer Food and Product Insight Survey,” thanks to higher food prices and rising gas prices, 72.7% of consumers are making fewer trips to the grocery store to save money and 40.8% are purchasing fewer items overall.



“Higher prices, smaller package sizes and pain at the pump are driving consumers to buy lower-priced grocery items,” said Pat Conroy, vice chairman, Deloitte LLP and the U.S. consumer products practice leader. “That’s why now more than ever it is important for consumer products companies to strengthen their customer relationships and distinguish value ahead of the competition.”



The survey also found that private-label and store brand purchases are on the rise, as 75.3% of respondents purchased lower-priced products and nearly two in five respondents (39.6%) added more private-label products to their grocery bags.



Smartphone use is on the rise as well, as 34% of smartphone users researched food prices or product information online while in a store. And, 28% interacted with a food retailer via their mobile application or website.



Also, 43% of smartphone users have managed a food shopping list while not in a store.



Overall, more than half (53%) of shoppers surveyed are increasingly using technology to obtain information about food products, and 28% of respondents interacted with a food retailer via their mobile application or website. Furthermore, more than one-fifth (23.5%) of survey respondents expect their smartphone-related grocery shopping activity to increase next year.



“Smarter phones and smarter shoppers are transforming today’s shopping experience,” said Conroy. “Moving forward, consumer product companies must make themselves more accessible to consumers who are using 21st century technologies to look for coupons, store specials and to even shop for groceries.”



Nearly four in five respondents (79.7%) purchased food from a traditional supermarket during the past year. Deloitte’s survey also showed that large supercenters are the second most sought after food buying destinations with 61% purchasing groceries at these venues in the past year.



Outside of shopping at supermarkets and one-stop shop supercenters, nearly one-third of consumers (32.6%) met their grocery needs by visiting a dollar store over the past year. The survey also found that 22% bought food at a drug store and 4.9% visited an online retailer or food manufacturer to purchase food.