Inflation worries softening, but shoppers still looking for deals

Nearly two-thirds of shoppers are still worried about inflation, and they’ve spent the past year cutting back on non-essentials and searching for sales to help ease the pain, according to a report released Thursday by Kroger-owned data analytics firm 84.51°. 

The company’s year-end report “Adapting with resilience: The new customer paradigm,” showed that more than a quarter of shoppers (27%) said they plan to increase their online grocery shopping next year, while only 9% said they’ll buy fewer groceries online.  

“While concern over inflation has leveled out, shoppers are still feeling the pinch, so they’re adjusting their spending as they keep a watchful eye on prices,” the report stated. “They’re persevering with resilience, but unsure how long inflation will last.”  

While concern over inflation remains high, worries have softened slightly over the last year and a half when anxiety reached a high of 73% in June of 2022.  

In October, the rate of those looking for sales, deals and coupons to stretch their grocery dollars was at 65%. Another 55% said they’re cutting back on snacks, candy and other non-essential items. Meanwhile, 53% switched to a lower-cost brand, 47% purchased fewer items and 36% were cooking from scratch or with limited prepared foods.  

Rising grocery prices were the biggest financial concern for survey respondents, 83% of whom cited it as making them “uncomfortable,” according to the report.  

The majority of food consumed was purchased at grocery stores, but the rate of those purchasing food and preparing it at home declined from a 65% high in April to a 53% low in October, the report noted.  

The cancellation of emergency benefits through the Supplemental Nutrition Assistance Program (SNAP) in March had a major impact on household budgets over the year with 62% of SNAP recipients reporting that the reduction in benefits caused them financial strain.  

As a result, 48% said they were unable to save money for retirement, 48% struggled to maintain a monthly budget and 30% reported falling behind on their financial obligations. More than half (51%) said they cut back on groceries because of the reduction in SNAP.