The “pay more, get less” scenario is just not OK anymore.
Deloitte’s new 2011 Consumer Food and Product Insight Survey shows that nearly nine in 10 survey respondents believe prices in food stores are escalating and almost three in four say the size of some packaged goods is smaller.
Consequently, savvy consumers are purchasing more private-label and store brand products.
More than three-quarters of respondents purchased lower-priced products and nearly two in five respondents added more private label products to their grocery bags.
“Higher prices, smaller package sizes and pain at the pump are driving consumers to buy lower-priced grocery items,” said Pat Conroy, Deloitte vice chairman.
The proliferation of smartphones and a much savvier base of shoppers have spurred consumers to use mobile devices to assist with several aspects of their shopping routines, according to the survey. More than a third of smartphone users research food prices or product information while in a store.
Overall, more than half of shoppers surveyed are increasingly using technology to obtain information about food products and more than a quarter interacted with a food retailer through their mobile application or website.
So who are the winners?
According to retail experts at Avanade, discount grocers, warehouse retailers and companies with a very strong private label are going to win.
Source: Progressive Grocer, July 2011