Hunter Thurman’s Post

Young adults are battling sticker shock at the grocery store by supersizing their groceries. They are turning to bulk purchases, splitting their food costs with friends, roommates, family and neighbors. Shoppers in their 20s and 30s are trying to fight higher prices by joining warehouse-store giants such as Costco and Sam’s Club.  Generation Z shoppers represent the fastest-growing member group at Walmart-owned Sam’s Club, a spokeswoman says. Memberships for shoppers ages 27 and under rose 63% over the past two fiscal years. Gen Z and millennials—customers 28 to 43—now make up a quarter of Sam’s Club members. This growth is partially because Gen Zers are entering adulthood but also because they are drawn to the lower per-unit food costs, says Rupesh Parikh, a senior equity research analyst for the financial-services company Oppenheimer. They also see the warehouse stores’ huge crates of tomato sauce and gargantuan packs of chicken as a way to divide and conquer. #grocery #groceryindustry Rupesh Parikh Margot Amouyal Dave Peacock Advantage Solutions

🛒 Bulk Buying Boom: Why Gen Z Loves Costco and Sam’s Club 🏷️ 🌟 Introduction Inflation has significantly impacted grocery shopping, with Gen Z adapting by favoring bulk stores like Costco and Sam’s Club. This article explores how inflation influences Gen Z’s grocery habits and the implications for the retail industry from a customer experience (CX) perspective. 📜 Historical Background Grocery shopping has evolved from local stores to supermarket chains, and now to bulk stores like Costco and Sam’s Club. These stores offer significant savings for those willing to buy in large quantities. 🏆 Significant Milestones • 1976: Costco opens its first warehouse. • 1983: Sam’s Club is founded. • 2020-2023: Inflation rates soar, pushing consumers to seek cost-effective shopping solutions. • 2024: Reports show a significant increase in Gen Z memberships at bulk stores. 🌐 Impact on Society/Industry Inflation has driven Gen Z to seek cost-effective shopping solutions. Bulk stores offer lower per-unit costs, helping mitigate financial strain. This trend reflects broader consumer behavior shifts, where convenience is traded for savings. Retailers are responding by enhancing membership benefits, expanding product lines, and emphasizing sustainability to appeal to Gen Z’s preferences. 🌟 Legacy and Future Outlook The trend of Gen Z favoring bulk stores may influence future generations. As inflation persists, cost-effective shopping will likely continue. Retailers must innovate to meet the demands of this tech-savvy, socially conscious generation. 💡 Conclusion Inflation has reshaped grocery shopping habits, with Gen Z leading the shift towards bulk purchasing. Retailers that adapt to these changes can gain loyalty from this influential demographic. Understanding and catering to Gen Z’s needs will be crucial for the retail industry’s success. 📢 Call to Action How has inflation affected your shopping habits? Share your experiences and thoughts on the future of grocery shopping in the comments below. Let’s discuss how we can navigate these changes together! https://lnkd.in/en-n22Hw #Inflation #GenZ #GroceryShopping #RetailTrends #Costco #SamsClub #ConsumerBehavior #Economy #CX #UX #RetailInnovation

https://lnkd.in/e9NSq2mm? Walmart is introducing a new Kirkland-esque premium brand. Part of what they're doing is trying to slow the pace at which customers trade up, by giving them a chance to trade up in the store instead of by switching some of their shopping to Whole Foods or Costco. It's also a way to better-segment their offerings: they have a cheaper house brand ("Great Value") and a premium one ("Sam's Choice") but they haven't made the latter look sufficiently different. Sometimes changing the name, refreshing the packaging, and hiking the price is what it takes to tell a slightly richer customer cohort that they're still in the right place.

The Fourth of July is right around the corner! 🇺🇸 🍔 Path to Purchase Institute recently highlighted our infographic that surveyed shoppers on how they're celebrating the holiday – from where they're shopping to what they're grilling up. Did you know that 41% of shoppers start shopping for their Fourth of July supplies a week in advance? For the full insights, check out the article! #fourthofjuly #shopperinsights #shoppermarketing #cpgmarketing #cpgs #retailmarketing #retail #shoppers #shoppingtrends #infographic #shoppingdata #shoppinghabits #adtech

Friday news #WhatsEmerging Grocers enacting Inflation-free shopping? 🥦🛒💵 Walmart has responded to the growing concern of groceries being too expensive with a new Thanksgiving meal that averages at $7 per person. This has come at a time of consumer frustration as grocery and QSR prices surge beyond affordability. PepsiCo has also responded to ‘shrinkflation’ complaints by adding more chips in its bags after sales started to turn downwards. Thoughts? Are these good strategies? Is this a new direction for large grocers to brand themselves as more affordable? https://lnkd.in/dCeZawFA https://lnkd.in/d4tdSAqS

July 4 Shopping Trends – Grocery stores are the retailer of choice for those purchasing items for the holiday. Coming in 2nd place was #Walmart while club & dollar stores tied for 3rd, according to Breaktime Media. See below for more insights! #4thofjuly #retail #cpg

The old statistic comparing Walmart's and Target's grocery businesses has raised its head again. This time in a Business Insider article (link in comments): "Walmart US makes nearly 60% of its revenue from the grocery category ... Food and beverage sales accounted for less than a quarter of Target's sales last year." Just a polite reminder that this is a misleading metric. Walmart’s 60% number (which is running at 60.3% in the first half of 2024) includes food and beverage, household products, paper goods, pet supplies, and beauty. By comparison, Target’s 20% (which is 23.2% in the first half of 2024) includes only food and beverage. It does not include household products, paper goods, pet supplies, or beauty. So, it is *not* directly comparable to the Walmart number. The directly comparable numbers for essentials are shown below. Note that these are first half of 2024 only so the percentages will shift as the second half is a traditionally bigger general merchandise (non-food) period. #retail #retailnews #statistics #data #grocery #essentials

How are grocers innovating to serve inflation-weary consumers this holiday season? #Thanksgiving 2024 brings heightened competition among grocers, as they roll out deeper discounts to win over price-sensitive shoppers. Retailers like Target, Walmart, and Aldi are driving down meal prices to as low as $5 per person, while some stores are offering free turkey promotions through loyalty programs. This article provides a closer look at these cost-saving measures, illustrating how grocers are navigating economic challenges and meeting customers’ needs this holiday season: https://bit.ly/3Z5p51j #retail #pricing #sales #toolsgroup

As a #retail #supplychain guy, I'm almost obsessed with stories like this one. While the purpose of these #price comparisons is to illustrate which retailer can leverage their supply chains to help consumers save the most money and live at their best (see what I did there?), they also illustrate that some retailers want their consumers to "expect more" out of their products while "paying less" than what specialty stores charge (*ahem*). In this story, it's pretty clear that for products that depend on volume, Walmart is a clear winner in the mass discount grocery category. However, the price comparison against Target isn't perfect, as some products are clearly targeted (no pun intended) at different consumer segments. Case in point: boxed mac n' cheese. While the price difference is rather eye popping, Target's is organic. For ice cream, Target's is non-dairy (although the dairy version is not too much cheaper). Target's marinara sauce is clearly labeled "free of artificial colors and preservatives" while tortillas were a good 2 inches bigger. All of these point to a very well-known fact, that the two retailers serve different core consumers and thus their supply chains are ever-so slightly different to best serve their customers. The biggest tell: Target customers are more comfortable with paying a $5 premium on Liquid IV than Walmart's. Both retailers are industry leaders and have unique competencies that the other strives to develop. At the same time, their merchandising and pricing differences are a reminder that it's still important to not have identical value propositions.

Treasure hunt Surprise and delight, bargain discovery or simply activation of hunters and gatherers instincts? B&M concepts that keep relevant in times of unprecedented e-commerce boom are touching on this deeply ingrained in all of us psychological atavism. Aldi “aisle of shame”, Lidl Finds, Marshall’s, Costco… even Grocery Outlet or Trader Joe’s. They have one thing in common - deviate from mainstream and define own authentic ways to provoke hunt and gather instincts. Weekly promotions in mass grocery actually touch this same cord of human psyche. Just that high-low promotions became an industry drug for control and CPG power play. Intoxicating the business with boring sameness. Replaced the fun with fun-ding addiction… Can treasure hunt become the industry methadone treatment for heavy promotional dependencies? #retaildemocratization