Survey: Consumers cutting back, shopping around to find best grocery value
Consumers are continuing to focus on value when grocery shopping, with nearly half saying they don’t have a go-to retailer.
A majority (75%) of consumers say that they are stressed about grocery bills, up from 73% last year, with many cutting back on premium cuts of meat/seafood (41%) and non-essential food items like snacks and treats (39%), according to a new survey of consumers from AI-powered data platform Algolia.
Consumers are willing to shop around to make their dollar stretch. Forty-four percent don’t necessarily have a go-to grocery store, while 28% have a preferred grocer but still compare prices across brands and products before deciding what to buy.
[READ MORE: Survey: Majority of consumers think private brands offer quality, value]
Sixteen percent of those surveyed said they compare prices across multiple retailers before picking one grocer with the best prices overall, while only 6% say they stick with their favorite brands even when they cost more. Forty-two percent of consumers have switched to private labels to save money (up from 40% last year), while thirty-six percent have traded their favorite brands for cheaper alternatives.
In the face of higher prices, consumers are becoming more receptive to AI-powered grocery shopping features. Nearly half (48%) of consumers say they would be more likely to shop with a grocer that has successfully implemented AI features. This number jumps up to 53% for Gen X and millennials, 51% for Gen Z and 56% for parents.
More than half (56%) of consumers say they would use AI to automatically find and apply coupons, while a similar amount (52%) value AI that can help them compare similar products more quickly.
Additional survey highlights include the following:
•Nearly seven-in-10 millennial and Gen Z consumers want to use an AI shopping agent for their groceries, compared with only 37% of baby boomers. Similarly, nearly two-thirds (62%) of millennials believe AI helps them find products more quickly, while only 28% of baby boomers agree.
•More than half of consumers say information on grocery apps isn’t always reliable.
•Forty-three percent of consumers say grocers are significantly behind other retail categories in online shopping experience.
•Two-thirds (66%) of consumers say they’d hesitate to trust an AI shopping assistant from a grocer whose website or app is difficult to use.
“As shoppers constantly evaluate brands, retailers, substitutions and promotions, product discovery becomes more than a matter of convenience; it becomes a competitive differentiator,” said Piyush Patel, chief strategic business development officer at Algolia. “Grocers that make it easier to find the right product at the right value have a better chance of winning increasingly flexible shoppers.”
Algolia surveyed 1,000 U.S. adults for its report.
