What do shoppers think is responsible for the dynamic shifts in prices at the grocery shelf, what influences their perception of brands, and what does that mean for the contents of their baskets?
Phil Lempert, the SupermarketGuru, moderated a recent discussion with RDSolutions CEO Jacob Blondin and Chief Commercial Officer Lee Kallman, who explored how shoppers really judge value today, the ripple effects of tariffs on food pricing, and what strategies retailer and brands can employ to align merchandising with new shopper expectations.
The presenters also reviewed the findings of an exclusive shopper survey that revealed how consumers perceive pricing and how it impacts their decisions of where to shop and what to buy. They also presented footage of in-store interviews with shoppers who shared their thoughts, concerns and fears for how the global economy is influencing their family tables.
Some highlights from the survey:
- Asked on a scale of 1-10 how important price is when deciding where to shop, 87% rated it a 6 or higher.
- More than 60% of shoppers are willing to switch stores if they think prices are too high.
- 42% of shoppers seek out less expensive alternatives when prices go up, and 20% skip certain items altogether when prices increase.
- 65% of consumers surveyed say promotional offers, such as discounts or buy-one-get-one-free, impact their perception of a product’s value.
- More than 80% of consumers believe that economic conditions such as inflation or tariffs are impacting food prices.
The presenters advised brands and retailers to adopt a pricing strategy that emphasizes value; strategic merchandising; and messaging that communicates the economic realities to consumers. They also warned retailers to avoid the appearance of profit inflation, as consumers are generally inclined to blame retailers for higher prices though they may just be keeping up with supplier increases.
