Frequently Asked Questions
Rising Food Prices Are Driving New Behaviors
Jun 20, 2011 by Brad Hanna under the Consumer Trends category with Comments are off for this post.
Whole food prices rose to near a record in April. To avoid sticker shock at the grocery store, consumers are employing a variety of cost saving strategies. A survey conducted by Harris Interactive and commissioned by Coupons.com shows that 95% plan to use savings strategies when they shop for groceries.
Some of the strategies consumers are employing to offset rising food prices include:
Incorporating coupons is the most popular strategy
Comparing unit prices of package sizes
Shopping at discount grocery stores
Stocking up when items reach rock-bottom low prices
Buying in bulk
Shopping at discount grocery stores has grown in popularity as a cost savings strategy across the board. The demographics of the discount grocery shopper have expanded beyond the lower class. These days, you will see all different classes shopping at these stores as they become part of the American shopping mainstream. Discount grocery stores like Save-A-Lot and Aldi are in a major expansion mode with Save-A-Lot opening up stores in upscale neighborhoods in the Chicago area.
Shoppers may be a bit skeptical about the quality of some perishable products at these stores, but they are very open to purchasing packaged goods at discount grocery stores. This is good news for CPG companies and for private label food manufacturers as this potentially opens up an opportunity for growth.
CPG brands should look to alternative and discount channels for growth, especially with the high presence of private label. CPG brands should also look at non-traditional channels such as improvement for impulse and non-perishable items.
Photo credit: sdc2027
by Brad Hanna under the Consumer Trends category with Comments are off for this post.