A new survey from R.R. Donnelley & Sons Company (RRD) shows that inflation makes consumers change their shopping habits, putting value ahead of brand loyalty. As prices keep rising, shoppers are choosing lower-cost alternatives, searching for bargains, and avoiding items they deem too expensive.
The survey shows that only 55% of consumers remain loyal to their preferred stores, especially among baby boomers (61%) and affluent shoppers (64%). However, 45%, led by millennials (50%), are ready to switch stores to save more money.
“Consumers are becoming more judicious with their purchasing decisions, largely due to the continued impact of external factors, including inflation. These factors test shoppers’ loyalty, making it more important than ever for marketers to rethink how they engage with buyers. Brands will need to meet shoppers where they are by emphasizing value and savings to hold their attention,” said Beth Johnson, grocery industry expert and director of client strategy at RRD.
Additionally, the report emphasises key shifts in shopping behaviour driven by frustration with rising costs. As many as 88% of consumers showed dissatisfaction with price increases in categories such as groceries, gas, and dining out. Food and beverage prices are still the biggest concern for 80% of shoppers, a trend consistent across income levels and age groups.
To deal with these rising costs, shoppers are changing their spending strategies. Consumers are stocking up on sale items (41%), buying fewer products (37%), switching to lower-priced brands (37%), and choosing private labels over name brands (35%). Coupon usage has also surged, with mass store coupon redemption up 9% and variety store coupon use up 37% from early 2023.
Besides the price, convenience plays a major role in store choice, with 68% of consumers favouring stores near their homes. For instance, Gen Z and millennial shoppers are willing to travel farther for a more engaging shopping experience. Moreover, consumers are also asking for more relevant deals, personalised discounts, and a focus on local products.