Grocery baskets are shrinking

The most common cost-saving actions of consumers are comparing prices and buying generic or store brands instead of name brands, according to a recent survey from information and technology company Morning Consult, but new data shows a growing number of consumers are simply buying less overall.

The number of consumers who have purchased fewer items to save money on grocery bills has climbed, rising from 15% in October 2021 to 24% last month. This cost-saving method varies by income and generation, with each of these demographics purchasing fewer items. Gen Xers are the most likely to buy fewer items, as well as consumers who earn at least $100,000 annually, the report said. 

“While grocery demand is relatively inelastic, these persistent price increases do have the potential to impact volume," Emily Moquin, food and beverage analyst at Morning Consult told WGB. "At a high level, shoppers can save by either buying less-expensive items or buying fewer items. We’re now reaching a point where more consumers are not just looking to save money on the items they’re buying, but they’re buying fewer items altogether.” 

Moquin said she was surprised to see that all income groups are buying fewer items. 

“Even the share of those shoppers in the highest income range, $100,000 or more annually, who said they often buy fewer items to save on grocery bills climbed from 13% to 19% since last October,” she said.

During the early days of the pandemic, consumers were stocking up on items they needed, as empty shelves were an indication that shoppers were not seeing certain items, and consumers were unsure of when they’d be in stock again. Additionally, customers were making fewer and more infrequent trips to the grocery store to avoid COVID exposure, the report said. Now, consumer behavior has shifted to “purchasing the necessities,” and “waiting for sales or their next paycheck to purchase any item that won’t be used before their next trip,” the report noted. 

“Sales, promotions and rewards programs will make it easier for shoppers to afford all the grocery items they want and need. Retailers should be very thoughtful about merchandising tactics that can increase incrementality and bring focus to categories that might be getting left out of the cart,” said Moquin.

While consumer shopping behavior tends to change often—stocking up on items, buying less-expensive brands, comparison shopping—more and more consumers are now just purchasing what they need.

“Until recently, the emphasis has been on per-item savings, for instance comparing prices more closely to get the best deal or buying generic or store brand items with lower price tags, but more shoppers are now evaluating what they can live without or save for the next trip,” Moquin explained.