Traditional grocers are losing their most valuable shoppers in a shift that appears permanent, according to new survey data from AlixPartners released Jan. 21.
Fewer than half of consumers — 49 percent — say they spent most of their grocery budget at traditional grocers like Kroger, Albertsons, H-E-B and Wegmans in 2025, down from the prior year. The steepest declines are among younger shoppers, higher-income households and families with children.
Thirty-six percent of shoppers aged 18-24 and 47 percent of households earning $100,000 or more rely mainly on traditional grocers. The channel is also trending down in occasional engagement, with 80 percent of shoppers visiting a traditional grocer in 2025, down from 84 percent in 2024.
Discount, digital formats gaining ground
As inflation eases, shoppers are not reverting to old habits. Instead, competition is fragmenting, pricing credibility is breaking down and promotions are no longer doing the job.
Engagement with discounters grew from 38 percent to 43 percent of shoppers year over year. Digital grocery usage jumped from 17 percent to 26 percent, while natural and specialty grocers posted some of the fastest gains.
“These changes signal a structural reset in how Americans shop for food — not just a temporary inflation hangover,” AlixPartners stated in the report.
The findings challenge long-held grocery playbooks. Only 17 percent of shoppers believe their main store truly has low prices versus competitors. No grocery channel earns a majority “low price” perception from consumers.
Price credibility collapses despite easing inflation
Despite inflation cooling, 68 percent of shoppers still changed how they shopped in 2025 due to financial pressure. This comes even as 63 percent say they feel at least somewhat confident in their finances.
The loss of pricing credibility is compounded by promotion fatigue. Sixteen percent of shoppers say promotions are a top reason their primary store provides value, even though its everyday prices are fair or high rather than low.
Shoppers are actively rejecting common deal mechanics. Thirty-nine percent won’t buy larger quantities, 30 percent won’t meet minimum spend thresholds, 26 percent won’t visit another store, 24 percent won’t use an app and 17 percent won’t clip coupons.
Private brand emerges as traffic driver
Unique items, including private brands, have emerged as a primary traffic driver — especially for younger shoppers forming long-term habits.
Forty-seven percent of value-seeking consumers bought more private-brand items in 2025, up from 32 percent in 2024. Among shoppers who say everyday prices are “fair” or “high,” 50 percent still consider their store a value primarily because it carries exclusive items.
Seventy percent of shoppers aged 25-34 reported in 2024 they regularly visit a specific store to buy its private brand.
Online grocery now mainstream
Online grocery has moved fully into the mainstream, with 36 percent of shoppers buying groceries online at least weekly. Only 30 percent say they never shop for groceries online. Sixty-five percent of shoppers now compare prices before shopping, increasing visibility into everyday pricing gaps across channels.
The research for the Grocery Consumer Perspectives report was conducted through a survey fielded in October 2025, capturing insights from 1,635 consumers.
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