Swiftly, a retail technology platform company delivering omnichannel tools for retailers, released its True Cost of a Grocery Shop survey, gauging how consumer food shopping habits and behaviors are evolving in the face of rising inflation and costs.
The survey found that current economic conditions are significantly impacting nearly all consumers’ shopping habits, with more than two-thirds indicating that they are struggling to pay their grocery bills.
Food costs are becoming too expensive for the average American and are only increasing due to record inflation and ongoing economic challenges. Simply put, food costs are too high. Retailers have an opportunity to improve the shopping experience and establish the digital relationships that build long-term loyalty by modernizing and implementing digital tools and solutions that deliver the personalization, value and savings that budget-conscious shoppers demand, the company said.
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Other key takeaways from the survey include:
- Nearly all (83%) survey respondents rely on some form of coupon, rewards app or loyalty program;
- 74% have changed their grocery shopping habits in the last year;
- 70% of respondents prefer and choose to shop in store at a local grocery store; and
- 33% are shopping in-store more than years’ past.
As a result of today’s economic uncertainties, the survey confirms that consumers have adapted not just what they buy, but how they buy and the recent uptick of in-store shopping presents a tremendous opportunity for brick-and-mortar grocers. In tandem, the findings showcase how loyalty programs and digital coupons catalyze and motivate consumers to prioritize in-store visits. To capitalize on these trends and grow their business, grocers must leverage retail technology tools that cultivate engagement, increase store traffic, boost basket size and reinforce loyalty, all while delivering a seamless digital to in-store connection, the company said.
“The grocery sector is at a turning point," said Henry Kim, co-founder and CEO of Swiftly. "After massive e-commerce growth throughout the pandemic, we are beginning to see a transition as consumer spending is tested by inflation and a looming recession. Furthermore, the potential consolidation of giant supermarket chains could also lead to increased prices, which would be especially hard for consumers to absorb in today’s challenging economy.”
Kim added, “Findings from this survey amplify the need for today’s brick-and-mortar grocers to solidify and own digital customer relationships and modernize digital revenue streams, in order to be competitive and maintain a loyal customer base.”
[Read more: Kroger offers Thanksgiving staples at affordable prices]
The survey was sent to a randomized group of over 1,500 participants.