Consumers ‘adjust' shopping habits amid rising inflation
'The findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers' everyday lives,' said Ben Wynkoop, senior director, global industry strategist, grocery and convenience, Blue Yonder. 'From buying fewer grocery items and cutting back on certain purchases to shopping at discount retailers and reprioritizing spending across other categories, consumers are navigating prolonged uncertainty — and retailers must adapt accordingly.'
Nearly half (49 percent) of all respondents believe newly introduced global tariffs are the leading factor behind inflated grocery prices, followed by increased costs for raw materials (42 percent), increased labor costs in manufacturing and food processing (39 percent), and increased profit margins for brands and manufacturers (33 percent).
The perceived top factor driving inflated grocery prices differs across regions. Consumers in the US (65 percent), the UK (56 percent) and the Middle East (50 percent) feel global tariffs are the leading cause of rising prices. Consumers in ANZ (50 percent) feel that increased profit margins for brands and manufacturers is the top factor for inflated prices, while consumers in France (48 percent) and Germany (47 percent) believe the increased cost of raw materials is the leading cause of grocery inflation.
There is a generational divide, too. Baby Boomers uniquely believe that increased labor costs in manufacturing and food processing are the leading cause for grocery inflation (52 percent), whereas all other generational groups believe global tariffs are the top cause of inflated prices.
Inflation's grip on grocery bills is triggering global concern from consumers. Almost two-thirds of consumers (65 percent) report they would buy fewer grocery items across categories to cope with price increases, while 42 percent would shop at discount and wholesale stores. In addition, approximately one-third would prefer shopping based on promotions and discounts (36 percent) and switching to private label brands (34 percent).
Globally, consumers in ANZ are the most likely to reduce spending on clothing and footwear (67 percent), followed closely by the US (62 percent), the UK (61 percent), France (49 percent), Germany (49 percent), and the Middle East (47 percent).
'With most consumers willing to adjust shopping habits in response to grocery inflation and mounting financial pressures, retailers — not just grocers — need to recognize the importance of building trust with shoppers through transparency, targeted promotions and affordability-first strategies,' Wynkoop added. 'Having the right supply chain solutions can help retailers win with consumers during times of both economic prosperity and difficulty.'
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