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Miami Herald
2 days ago
- Business
- Miami Herald
Grocers need to do a better job of explaining prices, shoppers say
Grocery shoppers have only a lukewarm impression of the steps supermarket operators have taken to communicate about factors that could or already do affect what they pay for food, according to survey results released Thursday by research firm The Feedback Group. Respondents to the poll of about 1,100 shoppers, conducted this spring, gave an average score of about 2.5 on a scale of 1 to 5 when asked if their primary grocery store has "communicated in some way" about how tariffs might impact prices. People were only slightly more pleased with the way stores have explained why groceries have become more expensive over the past few years, giving an average grade of just under 3. While people who participated in the survey placed the highest level of blame for increases in supermarket prices over the past few years on government policies and actions, they also indicated that they think grocers are benefiting from price increases. Respondents said they believe grocers have a profit margin of 30%, a figure that was down slightly from a similar poll The Feedback Group conducted last year. Grocery chains recorded a net profit margin after taxes of 1.6% in 2023, according to figures from FMI - The Food Industry Association. The majority (87%) of participants said they expect the tariffs the Trump administration has announced - but not fully implemented - would cause their grocery bills to increase, with only about half saying they thought their costs would increase significantly. Sixty-one percent of respondents said they are "stressed about rising grocery prices," although the figure varied significantly by generation. Seven in 10 participants who belong to Generation X reported that grocery inflation is stressful for them, compared with 65% for Generation Z and 36% for the Silent Generation. Asked which types of groceries they expect to become more expensive because of tariffs, almost 90% of poll participants said they think the prices of imported foods would increase. Two-thirds believe household goods will become pricier because of tariffs, while 63% of respondents said they think meat and poultry costs would go up. More than 60% of participants said they are buying more items on sale because of grocery inflation, which has recently eased. Half said they eat at home more frequently, while about 40% have bought more private label products. Copyright 2025 Industry Dive. All rights reserved.
Yahoo
3 days ago
- Business
- Yahoo
Feedback Group Study Finds Supermarket Shoppers Stressed by Rising Prices, Inflation, and Tariffs
LAKE SUCCESS, NY , June 05, 2025 (GLOBE NEWSWIRE) -- The Feedback Group, a leader in delivering actionable stakeholder insights, today released findings from its latest national research study, "Supermarket Shoppers:Rising Prices, Inflation, and Tariffs" This in-depth research explores shopper perceptions surrounding prices, inflation, and tariffs, and how these concerns are impacting consumer behavior in prices, inflation, and tariffs create stress for supermarket and Strategic Trade-Offs Mark the Current Grocery Experience A significant 61% of U.S. supermarket shoppers report feeling stressed about rising grocery prices. This stress is especially pronounced among younger and middle-age shoppers—Generation X (70%), Millennials (67%), and Gen Z (65%). Reflecting this tension, shoppers continue to adapt, employing a range of inflation-fighting strategies. Top tactics include buying more items on sale (62%), eating more often at home (50%), buying more store brands (42%), and using a store's weekly sales flyer (40%). "Shoppers are clearly under pressure, and the emotional toll of rising grocery prices is visible across the generations," commented Doug Madenberg, Chief Listening Officer at The Feedback Group. "Our research underscores the balancing act many consumers face in the supermarket aisle today." Shoppers Point to Government Policies as Most Responsible for Price Increases When asked about the factors contributing to higher supermarket prices, shoppers once again pointed to government policies and actions as the most responsible (mean score 4.11 on a 5-point scale), a notable increase from 3.86 in 2024. Factors following government policies and actions were product manufacturers and suppliers (3.49), wars and worldwide conflicts (3.39), and supermarket retailers (3.22). Farmers and growers were viewed as least responsible (2.69). Brian Numainville, Principal at The Feedback Group, noted, 'Consumers continue to believe that external factors—particularly government policy and suppliers—are driving price hikes more than the supermarkets themselves. These perceptions are intensifying over time.' Tariff Awareness is High—So Is Concern The study found that 95% of shoppers were already aware of proposed tariffs before being surveyed. Among tariff-aware shoppers, many expressed concern that tariffs would impact their grocery bills, with nearly half (47%) saying they were "very concerned." A majority (83%) expect tariffs to increase prices—49% believe prices will rise significantly and 34% somewhat. Shoppers expect a broad range of categories will be affected by tariff-related price hikes, most notably international and imported foods (88%), followed by fruits and vegetables (79%), household items (67%), packaged or processed foods (65%), and meat and poultry (63%). Private Labels and Promotions Gain Ground as Shoppers Prepare for Tariff Fallout If tariffs lead to higher prices, shoppers say they are most likely to switch to store brand or lower-cost items (41%), use more coupons or promotions (35%), or buy fewer groceries overall (34%). Notably, eight in ten shoppers already believe private label prices and quality compare well to national brands. Retailers Must Strengthen Communication Around Inflation and Pricing While most shoppers remain satisfied with their overall supermarket experience, the research reveals a communication gap. Shoppers gave supermarkets relatively low ratings for being on their side when it comes to inflation (3.34), explaining price increases (2.97), and discussing tariff impacts (2.46). As a result, shoppers continue to significantly overestimate supermarket profits, believing them to be, on average, at 30% when the reality is net profit margins actually register in the 1–3% range. This perception has persisted for years. 'Supermarkets have an opportunity to enhance transparency with their shoppers,' concluded Madenberg and Numainville. 'Clearer communication around price drivers can help rebuild trust during uncertain economic times.'The research findings are available to supermarket retailers, distributors, and food industry companies. Please visit The Feedback Group's website for more policies and actions are viewed as the most responsible for higher prices in supermarkets, increasing significantly in the last The Feedback Group The Feedback Group offers a broad spectrum of research, consumer insight, and consulting services. As a 360-degree listening partner, The Feedback Group provides services include employee experience assessments, customer satisfaction programs, and consumer perception studies, as well as national, regional, and local shopper studies. For more information, visit Press inquiries The Feedback Group Brian Numainville bn@ 516-829-4200 ext. 115 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-02-2025
- Business
- Yahoo
The Feedback Group Unveils Study: Supermarkets Lead in Online Grocery Satisfaction as Delivery Grows and AI Gains Traction with Shoppers
LAKE SUCCESS, N.Y., Feb. 18, 2025 (GLOBE NEWSWIRE) -- The Feedback Group, a leader in providing actionable stakeholder insights, today released its latest national study of 1,230 online grocery shoppers, uncovering key findings in consumer habits, channel performance, and areas for improvement in the online grocery shopping experience. Supermarkets lead all channels in overall satisfaction with online food shopping. Online Grocery Shopping is Here to Stay—With Delivery Gaining Ground The research confirms that online grocery shopping is firmly entrenched in consumer behavior, with 79% of shoppers planning to maintain or increase their online shopping over the next year. Additionally, the study highlights a shift in how consumers receive their orders. Delivery (52%) surpassed pickup (48%), a signal that shoppers continue to prioritize convenience. Another key finding: nearly half (48%) of respondents say they are spending more of their grocery budget online than they did last year. At the same time, 90% of online shoppers also shop at a physical food store. Supermarkets Continue to Set the Standard for Online Shopping Satisfaction When rating their most recent online shopping experience, consumers gave supermarkets the highest satisfaction score (4.45 on a five-point scale), ahead of other channels including Amazon (4.32), mass retailers (4.25), club stores (4.18), value retailers (4.01), and dollar stores (3.68). 'Supermarkets continue to lead the way in online grocery satisfaction, demonstrating strong execution in convenience, fulfillment, and service,' said Brian Numainville, Principal at The Feedback Group. 'As a channel, supermarket investments in e-commerce capabilities have clearly paid off, but there's still room for improvement.' Generational Satisfaction Gaps Persist Older shoppers continue to be more satisfied with online grocery shopping than younger generations. Boomers (4.36) rated their experience highest, followed by Gen X (4.26), while Millennials (4.16) and Gen Z shoppers (4.05) were less satisfied. This generational divide suggests that younger shoppers, who are more accustomed to seamless digital experiences across industries, may have higher expectations for online grocery services. Retailers should focus on personalization and enhanced usability to better cater to Millennials and Gen Z. Technology's Role Expands: AI and Voice Shopping Gain Traction Retailers looking to stay ahead should take note of shifting consumer preferences for AI-driven shopping features and voice technology: 19% of online grocery shoppers used AI-powered features like chatbots and smart shopping lists in their most recent order. 46% of shoppers said they would be interested in using voice commands to add items to their cart if their online grocery provider offered the feature. "Shoppers are gradually becoming more comfortable with AI-powered tools, and the demand for voice shopping capabilities is growing,' Numainville continued. 'Retailers who integrate these technologies thoughtfully can enhance convenience and drive stronger customer loyalty.' Key Challenges: Product Availability and Order Accuracy Still Need Improvement While consumers appreciate the convenience of online shopping, product availability, order accuracy, and confidence in fresh department quality remain major pain points: 30% of shoppers did not receive all the items they ordered, with 11% stating they still wound-up needing something they ordered. Confidence in fresh produce quality lags behind other grocery categories, with only 73% of shoppers expressing confidence in the quality of produce ordered online, and produce is also the category with the highest percentage of falling short of the highest quality standard. 'Consumers rely on online grocery shopping for convenience, but when key items are missing or fresh produce quality falls short, it erodes trust,' said Doug Madenberg, Chief Listening Officer at The Feedback Group. 'Retailers must enhance inventory accuracy and quality control, particularly in fresh categories, to deliver a more reliable and satisfying experience.' Consumers Are Willing to Pay More for Faster Service and Sustainable Packaging The study also revealed consumer preferences that online retailers can capitalize on: 44% of shoppers would pay an extra fee for guaranteed two-hour delivery. 25% of shoppers said sustainable/recyclable packaging is very important for their online orders. 50% of shoppers noticed new items to try while shopping online. These insights suggest shoppers value speed, sustainability, and product discovery—areas where retailers can create differentiation and justify premium service tiers. The full research findings are available to supermarket retailers, distributors, and other food industry companies. Please visit for more two out of ten shoppers indicated they used AI powered shopping features on their most recent online grocery order. About The Feedback Group The Feedback Group offers a broad spectrum of research, consumer insight, and consulting services. As a 360-degree listening partner, The Feedback Group provides services include employee experience assessments, customer satisfaction programs, and consumer perception studies, as well as national, regional and local shopper studies. For more information, visit Press Inquiries The Feedback Group Brian Numainville bn@ 516-829-4200 ext. 115 Photos accompanying this announcement are available at in to access your portfolio
