Older Grocery Shoppers Much More Deal-Motivated Than Younger Counterparts

As grocery shoppers rethink their spending, PYMNTS data shows older shoppers seek deals the most.

The Context

As inflation affects consumer spending behavior, many grocers are touting deals and discounts, but while these efforts might be effective for older customers, they will not have the same impact on all consumers.

Grocery giant Kroger, for one, has been looking to extend its digitally optimized discounts to in-store customers. Consumer-packaged goods (CPG) marketing company Catalina recently announced that it has partnered with 84.51°, grocery giant Kroger’s retail media arm, to deliver printed coupons to in-store shoppers, bringing previously digital-only offers into physical aisles. The program, Catalina Reach Extender, will use in-lane printers to dispense hard copies of personalized offers to shoppers.

“We look forward to using this breakthrough technology to bring meaningful savings to even more customers,” 84.51° Kroger Precision Marketing Senior Vice President Cara Pratt said in the announcement. “The ultimate aim of using Catalina Reach Extender is to engage 100% of our shoppers with the best possible access to value. This expansion will enable CPG brands to engage even more shoppers with inspiring products for their homes and families.”

Plus, grocery aggregator Instacart announced toward the end of last year the launch of its Promotions suite of advertising offerings for consumer packaged goods (CPG) brands, offering self-service options for showing consumers personalized deals, promotions and coupons.

“With the average cost of groceries going up, we’re proud to unlock more ways for consumers to save money and connect with their favorite brands and retailers via Instacart,” Ali Miller, vice president of ads product at Instacart, said in a statement at the time.

By the Numbers

PYMNTS’ recent study “Changes in Grocery Shopping Habits and Perception,” which draws from a December survey of more than 2,400 U.S. consumers, seeks to identify how consumers’  grocery shopping behaviors have changed in the recent past as well as the factors influencing those shifts.

The report reveals that 38% of baby boomers and seniors cite high prices or the lack of deals as the most important factor in in their decision to purchase fewer products from grocery stores of late. In contrast, a far smaller share — only 14% — of Gen Z consumers said the same. Instead, younger consumers are far more likely to be motivated by convenience, and they are apparently willing to pay a premium for it.