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Prices at restaurants and grocery stores are officially 30% higher than they were five years ago and, to one's disbelief, consumers are very upset about it. While one does have to take into account inflation, there's no ignoring how the new prices are creating new challenges for consumers and companies. With consumers buying fewer products, companies have to put more effort into what they produce, what they look like, taste like, and more. #Innovation #CX #BusinessGrowth #MarketGrowth #FutureOfFood

A $100 grocery haul in 2019 costs almost $140 today — nearly 40 percent more for the same common items, causing consumers to “become creative to cope” with crippling inflation. According to a Wall Street Journal analysis of NielsenIQ data on the prices of everyday foods such as meat, vegetables, starches, and snacks, Americans are facing a dramatic increase across all categories. “A Benjamin just isn’t what it used to be,” the Journal’s Stephanie Stamm and Jesse Newman wrote, alongside graphs showing that the average $100 grocery list now costs 36.5 percent more compared to five years ago. This means that in order to spend the same amount on food as they did in 2019, shoppers would have to place almost $37 worth of items back on the shelves before checking out. Some items have increased even more dramatically, such as eggs, at 63 percent higher, and sports drinks, which are up 80 percent. Prices increased by one percent from February 2023 to February 2024, but the most dramatic jump took place from 2022 to 2023 with a whopping 10.2 percent surge. “Executives have said that higher prices were needed to offset their own rising costs for ingredients, transportation and labor,” the report stated. “Some U.S. lawmakers and the Biden administration have criticized food companies for using tactics such as shrinkflation, in which companies shrink their products—but not their prices.” Consumers have been forced to “become creative to cope with a stretch of record food inflation,” choosing cheaper versions of the products they prefer or strategically looking for sales, coupons, and deals.

If you've noticed your grocery cart feeling a little lighter lately — without the price tag changing much — you're not imagining it. More and more companies are adopting #shrinkflation, a practice where product sizes shrink, but prices stay the same (or even go up slightly). This trend started as a way for manufacturers to navigate the #supplychainshortages during the #pandemic. By reducing the quantity or size of products, companies could manage rising costs without alarming customers with dramatic price hikes. But it seems shrinkflation is here to stay, even as inflation slows. Take Tropicana, for example: they've reduced the size of their orange juice bottles from 52 oz to 46 oz — without dropping the price. It’s not just juice, either. A third of common grocery items are shrinking, including family-size cereals (like Frosted Flakes, which went from 24 oz to 21.7 oz). This means per-ounce prices can jump significantly — in some cases by as much as 40%. While some shoppers may feel deceived, experts argue that consumers are more sensitive to #priceincreases than shrinkflation itself. However, as Matt Riesenbach, Product Management Director at ECI Software Solutions, points out, shrinkflation is evolving into a long-term strategy, not just a temporary cost-recovery tactic. #ConsumerTrends #GroceryShopping #Retail #SupplyChain #Inflation #CostManagement

As we move into fall, a season buzzing with political activity, #consumers are adapting their shopping habits to manage grocery costs. Despite concerns about prices, they continue to trust food retailers and enjoy the shopping experience. Discover these insights and more in the latest report, “U.S. Grocery Shopper Trends: Return to Routine,” by FMI – The Food Industry Association and The Hartman Group. 🍎

McMullen highlighted the increasing economic divide among consumers: “It’s becoming much more bifurcated … If you look at the person that’s on a budget, that person is under tremendous strain.” This economic disparity has led to significant shifts in consumer behavior, including:  Increased reliance on private-label brands: As consumers seek value, Kroger’s Our Brands have become increasingly popular.  Shift toward home cooking: The COVID-19 pandemic accelerated the trend of cooking at home, and consumers continue to prioritize meal preparation.  Changing shopping habits: Consumers are adapting their shopping patterns to optimize their budgets, with some opting for larger purchases at the beginning of the month and smaller purchases toward the end.

In a tough economy, retailers must be thinking about how to deliver the best value for customers. According to KG client Birdzi, Inc., personalization can go a long way. According to founder, Shekar Raman: "Hyper-personalization not only shows customers that the retailer understands them, but makes the shopping trip itself more convenient and enjoyable. Offering relevant and timely deals specific to shoppers’ needs can make the trip to the store a lot more enjoyable, tolerable, and help build loyalty without breaking the bank, so to speak, during another inflation-ridden grocery run." Read more in this The Food Institute article: https://ow.ly/uaxR50RUbZ9 #personalization #retail #retailtech

Lifestyle creep and shrinkflation are some of the leaks that over time can destroy your budget and savings strategy. First step to managing your cash is paying yourself and automating bills! Find more on my page

Grocery Tracking Work may have slowed down, but tracking is still going. Bellow is a link to a small effort to track individual item's costs across different grocery stores. At a first glance, you may be wondering why I am tracking each exhausting grocery item by hand? Because I have yet to find an itemized list of groceries and costs. My literature search has consisted of general categories summarized in reports of price changes over the last couple decades. For example, did you know that sugary products has been one of the top catagories of food products that have been impacted the most by inflation? While vegtables have been impacted the least?! Although useful, I'm looking to get even deeper than this and find ways to combat high costs. We already know inflation has impacted our groceries, I do not mean to repeat what we all know. With an itemized comparison cost of an individual product, you can quickly realize where to shop for individual products and save LOTS of money. For example, my favorite bone broth (from Kettle and Fire) is sold at Wholefoods at an average cost of $7.99, but the same size and brand will cost up to $13.49 at Safeway! Over 5 dollar difference not including tax. Why pay more money for the same exact product? I have not come up with a good reason this far. But this is one of several points as to why and how research like this is necessary and can impact us all! https://lnkd.in/g-D9zcjb

🦃Grocery retailers: is your pricing in place for the #thanksgiving rush? With holiday meal planning in full swing, grocery shoppers are more price-conscious than ever. As your competitors adjust thousands of prices daily - from turkey and cranberries to everyday essentials - smart pricing intelligence can give you the edge this #holidayseason. Check out this detailed blog that reveals how DataWeave's #pricing intelligence helps grocery retailers stay competitive by: • Eliminating pricing inconsistencies across product sizes and variations that confuse customers and hurt sales • Preventing revenue leakage by monitoring competitor prices on critical items that drive store traffic https://lnkd.in/ge-66frv #grocery #retail #CPG #BlackFriday2024 #dataanalytics

The FMI- The Food Industry Association's report, “US Grocery Shopper Trends: Finding Value,” utilized responses from over 2,000 primary shoppers in the United States to determine consumer behaviors and sentiments amid inflationary challenges. Learn more: https://ow.ly/CV0050RZ3Wk #GroceryIndustry #FoodRetail #FoodIndustry