Consumers suspicious about what’s behind high grocery prices

U.S. shoppers’ patience with high grocery prices is wearing thin and causing many to cast a more skeptical look at brands, according to consumer research platform Attest.

In a survey of 2,000 working-age consumers nationwide, 80% said they think brands are using inflation as an excuse to raise pricing, or “greedflation,” Attest reported. In turn, 58% of shoppers who believe brands are engaged in price gouging said “more needs to be done” to protect consumers from this practice.

Which brands do consumers mainly point the finger of greedflation at? Grocery. When Attest asked shoppers what kinds of products have experienced the sharpest price hikes, 75% cited groceries, well ahead of energy (37%), travel and clothing/footwear (27% apiece), and health and wellness (26%).

Source: Attest "How You Interact with Brands" U.S. Brand Campaign Survey, 2023.

Price perception is critical in today’s inflationary environment and can have a big impact on brand loyalty, Attest noted. Eighty-eight percent of shoppers surveyed said they’re now open to trying different products and services because of pricing pressure.  

Consumers polled by Attest exhibited the least amount loyalty toward grocery brands. Among categories where shoppers are most likely to switch brands to save money, 71% named food and beverages, followed by apparel/footwear (40%), cosmetics and body care (26%), health and wellness (24%) and electronics (24%).

Still, the top factor that would push consumers to stop buying a brand’s product or service is a negative experience, cited by 33% of respondents. Price increases came in a close second at 32%.

Strong price sensitivity in grocery

Meanwhile, consumers are hesitating to make an extra effort to get a better price, particularly in grocery, research by promotional products specialist Crestline shows.

Of more than 2,300 U.S. shoppers surveyed, 47% said they’ll make trips to multiple grocery stores to get items on sale at each location.

And savings are expected in certain categories by consumers. When shoppers were asked which products they would never pay full price for, apparel was the top-cited category, followed by electronics, groceries, books/audiobooks and hotels.

Source: Crestline "States Most Obsessed with Deals and Coupons Survey"

“Full price is never a good price for some items. From groceries and electronics to clothing and household items, there are certain products Americans refuse to buy without some sort of discount,” Crestline stated in its report, adding, “With grocery prices still high from inflation, it’s no surprise that they made the top three list of things Americans will never pay full price for.”

The top money-saving strategies named by consumers were waiting for a sale (84%), shopping deals at multiple stores (83%), shopping for clearance items (77%), using loyalty accounts (77%) and using coupons (72%), Crestline reported. Across the country, the top five states in terms of deal-shopping and coupon use are Mississippi, Alabama, Indiana, Iowa and Louisiana.