When today’s grocery shoppers browse store aisles, they are not looking for premium products or exciting indulgences — the majority are generally just trying to get the food they need and get out.
By the Numbers
According to data from PYMNTS’ “Consumer Inflation Sentiment” study, which draws from a July survey of nearly 3,800 U.S. adults, 60% of consumers have cut down on nonessential grocery spending due to rising prices.
The Data in Action
Walmart, the world’s largest grocer, is noting this trend. On a call with analysts Tuesday (Aug. 16), executives explained that consumers have been trading down when it comes to food spending, which in turn is putting pressure on profit margins.
“As an example, instead of deli meats at higher price points, customers are increasing purchases of hotdogs as well as canned tuna or chicken,” Walmart Executive Vice President and Chief Financial Officer John David Rainey said on the call. “Private brand penetration has also inflected higher.”