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Report: 86% of shoppers are frustrated about grocery shopping

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Report: 86% of shoppers are frustrated about grocery shopping

A new report shows nearly all consumers are frustrated about the rising prices across retail categories, including groceries.

Eighty-six percent of shoppers are frustrated about grocery shopping overall, a feeling driven by the rising cost of food and beverages, according to the recently released CPG + Grocery Consumer Report for Q4 2024 from RR Donnelley, an integrated communications company headquartered in Chicago.

The study interviewed over 1,800 consumers across generations and financial statuses to understand their attitudes, goals, and mindsets, and 254 decision-makers from U.S.-based grocery, drug, and mass retailers.

Baby Boomers were the most frustrated, with 87% expressing concern over food and beverages prices, and 79% of total households with incomes over $100,000 were disappointed.

“Rising prices, especially in the grocery sector, are putting pressure on consumers across all income levels,” said Beth Johnson, director of Client Strategy, Grocery & Convenience, for RR Donnelley. “Price sensitivity is a collective concern, presenting both a challenge and an opportunity for brands.”

The ongoing stress over high prices has consumers changing their behavior to stretch dollars. Almost half (41%) now stock up during sales, and 37% said they either purchase fewer items or switch to less-expensive name brands. Thirty-five percent said they have switched from name brands to private-label brands, according to the report.

Coupon redemption in mass and variety/discount stores has increased 9% and 37%, respectively, year over year.

Coupon books and mailed ads or postcards are on the rise, the report said. Fifty-four percent of consumers now prefer receiving coupons through mailed ads or postcards, marking a five-point increase since June 2023. Shoppers also prefer getting coupons (51%) from a coupon book in a newspaper or the mail, which is also a five-point increase since June 2023.

Retailers are leaning more on loyalty programs, in-store video for personalization, and interactive in-store experiences to attract customers, the report said, and 35% of them plan on investing in loyalty programs and personalized coupons and discounts over the next one to two years. The report found 68% believe video screens capture shoppers’ attention and 62% believe they help them notice new products or brands.

When asked what they want out of a grocery retailer, 59% of consumers said they prefer shopping at retailers that understand their buying habits and consistently offer relevant deals; 57% prefer shopping at stores that feature locally grown, raised, or produced; and 56% would like to see more store advertising for products produced or grown nearby.

In August, the Federal Trade Commission and the Department of Justice announced an inquiry into high grocery prices.

Grocery prices have been leveling off recently. Consumer Price Index data released in August by the Bureau of Labor Statistics showed food-at-home prices were flat in August after ticking up 0.1% in July. Year over year, grocery prices are up just 0.9%.

 

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