New tariffs may not be in place just yet, but a survey found consumers already are adjusting their spending habits, including what they buy at the grocery store.
Consumer insight platform Zappi surveyed 1,000 shoppers and found 91 percent of those polled are already making tradeoffs to manage rising prices. Nearly half say they are cooking at home more often (49 percent), cutting back on impulse purchases (45 percent) and eliminating non-essentials (33 percent) to cope with rising costs.
Additionally, shoppers are buying take out less (44 percent) and reducing alcohol purchases (22 percent). The survey also found one in three are switching to generic brands (32 percent), shopping at discount grocery stores (31 percent) and buying in bulk (31 percent).
When asked at what point consumers would no longer buy their favorite products based on category, the survey found a 5 to 10 percent price increase is enough to change behavior in most categories. In fact, more than half of consumers would stop purchasing snacks, fast food, beverages, wine and spirits and tech products if prices rose by just 10 percent. Moreover, 48 percent said they would stop buying certain produce items.
Dry goods proved to be one of the more resilient categories, with 25 percent of those surveyed saying they would continue purchasing these items no matter the price increase.
While respondents say they were interested in “Made in America” products, not many (20 percent) were willing to pay more. Nearly a third (28 percent) would choose the cheaper option regardless.
“Collectively, this data is a wake-up call for grocery retailers. They’re at risk of losing customers if they’re not mindful of how financially stretched consumers are. As it is, consumers are already adjusting their habits to manage rising prices,” Nataly Kelly, chief marketing officer at Zappi, told The Shelby Report.
“Grocers have a clear opportunity right now to spotlight store brands and lean into loss leaders, budget-friendly offerings and promotions that drive value perception. The good news is that categories like snacks, beverages, produce and dry goods showed more resilience than others in our survey. These items are seen as essentials, not splurges, so consumers are less willing to give them up.”
Kelly said grocers will need to up their game to ensure they remain the retailer of choice.
“Future-ready grocers know that staying competitive means adjusting shelf mix, amplifying value messaging and meeting shoppers’ needs with affordability front and center,” she said. “Grocery retailers must meet consumers where they are financially or lose them to competitors who will.”
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