With shoppers continuing to tighten their grocery budgets, retailers and manufacturers have an opportunity to win customers now and build loyalty for the future.
Nearly 80% of shoppers are considering price before making a purchase most or all of the time, according to a new study from Advantage Solutions’ Branded Services | SMARTeam that surveyed more than 1,400 shoppers about the impact of grocery prices on their shopping behavior. More than half of shoppers consider price per unit/ounce/count.
With six in 10 Americans describing themselves as pressured by personal finances, this much is clear — finding the best prices on grocery items is the top priority when shopping for food and other household items.
Shopper Insights Reveal Price Is Priority #1
Shopper insights from the SMARTeam study point to stark financial segmentation in grocery behavior:
- 40% of shoppers say they are comfortable with their personal finances.
- 45% say they are “managing, but money is tight.”
- 15% say they are struggling and cannot keep up with current expenses.
“Some shoppers look for sales, while others rely on retailer low prices,” says Katie Rigby, senior director of shopper insights for SMARTeam. “Sales motivate financially comfortable shoppers to stock up regardless of how much they already have on-hand, while 75% of those who are struggling say the retailer with the lowest prices matters most. Manufacturers need to understand what’s motivating the buyer to ensure the deal has the best ROI.”
Strategic Implications for Brands and Retailers
With two-thirds of consumers stretching food budgets, households are cooking at home more and dining out less. This presents retailers and brands with opportunities to drive trips and increase basket sizes.
- Recipe ideas for leftovers are resonating. “To help stretch their pocketbooks, shoppers are eating leftovers more often,” Rigby says. “Recipe ideas should be part of manufacturers’ social media strategy.”
- Value vs. quality: For food purchases, quality ranks #1 for 44% of shoppers; value ranks second at 35%. For non-food items, value is the top consideration (37%).
- Promotions that work: Temporary price reductions, coupons, and multi-buy deals are still highly effective in converting shoppers.
- Size awareness gap: 85% of shoppers say they’d buy a larger-sized product if the price doesn’t increase — but only 39% say they’d notice the change unprompted. This indicates a missed opportunity for value-based messaging on packaging.
- Channel matters: Grocery remains the top destination for 54% of shoppers — and this group is less sensitive to per-unit pricing.
SNAP shoppers, though fewer in number, spend 20% more on groceries than non-SNAP shoppers. While they are more attuned to discounts, their spending power represents a key strategic demographic.
What’s Next for Price-Conscious Shoppers
Convenience continues to play a major role in purchase decisions. “Whether it’s busy or bored cooks, demand continues for ready-to-eat and heat-and-eat meal solutions as shoppers shift from dining out to easy-meals at-home,” Rigby adds.
For CPG manufacturers and grocery retailers, understanding financial comfort, motivators behind bulk buying, and promotional visibility are critical in the months ahead. As shoppers continue to prioritize value, the ability to communicate that value clearly — across platforms, packaging and price point — will drive sustained engagement.
Download the Advantage pricing study here.
