Grocery Shoppers Want More Than Low Prices

Despite persistent economic weakness, consumers continue to flock to grocers that offer top quality perishables and the best atmosphere.

August 10, 2011

NEW YORK - For retailers, price and promotion have been the name of the game as the U.S. economic recovery continues at its sluggish and uneven pace. But, when it comes to choosing a grocery store, shoppers say food quality and store atmosphere remain equally as important considerations as price. Despite the fragile economy, 70 percent of consumers are making trips to the grocery store at least once per week and 50 percent plan to spend more on groceries in the coming year, with 39 percent expecting to spend the same amount. That??s according to a consumer survey released this week by AlixPartners LLP.

"Grocery shoppers are just as choosy as ever ?" it??s not enough for grocers to win on price alone," said Keith Jelinek, director in the Global Retail Practice at AlixPartners, in a press release. "Shoppers are looking for more from their grocery store ?" if it doesn??t offer quality and a pleasant experience and value, then they??re out the door."

While perishable quality, store atmosphere and price are the primary factors influencing consumers?? grocery store choice, the survey showed "frequent sales and promotions" are a factor, and can have a big impact on shoppers?? in-store purchasing decisions. The survey found that 86 percent of shoppers indicated they use a shopping list at least "sometimes," and 79 percent use coupons when developing those lists. Despite careful preparation ahead of grocery-shopping trips, 93 percent of those surveyed said that product displays and in-store signage ?" which typically point to promotional and sale items ?" can influence them to purchase items not on their shopping list. Furthermore, 79 percent of those surveyed indicated that in-store product sampling can persuade them to purchase new items.

"Consumers remain focused on value, regardless of income levels, and promotions and coupons continue to stretch their spending on groceries," said Russ Jones, director in AlixPartners?? Global Retail Practice. "And, as product display and signage remain two of the most important factors influencing purchasing, this continues to be an area of opportunity for grocers to communicate value."

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