C-stores, grocers, and specialty retailers should gear up for Christmas. The holiday season is certain to be a busy one. 47% of Americans plan to travel this season, according to travel leisureand consumers plan to spend $832.84 on average for holiday items like food and décor and gifts, according to NACS.
Grocers, Bodegas, and C-Stores Benefit from More People Cooking
Grocers, c-stores, bodegas, and specialty retailers can benefit from more people cooking at home due to inflation. While consumers are quick to cut back in other areas, food is always going to be a necessity.
34% of consumers have cut back on dining out due to higher prices and 44% said they are cooking more at home, according to NielsenIQ FMCG Retail Management data.
With more people aiming to cook at home to save money, grocery stores and other specialty food retailers become the main source for food spending for consumers.
Total retail and food services sales are at $7.44 trillion with the average household spending around $8,289 annually on food, according to Statista. According to Morning Consult, during times of inflation, consumers do aim to cut costs down in three simple ways…
1. Swapping out name brand goods for generic or store-brand
2. Trying to buy fewer items
3. Comparing prices between retailers
With more people swapping to store brand to save money, retailers can ramp up marketing efforts to promote store-brand items. Consider putting up a few displays of store-brand goods around the store, promoting these items in your store’s weekly/monthly ad or print marketing, and offering special sales/promos for these items. This will bring more consumers into your store as well as benefit you since they are buying your brand.
While inflation can benefit food sales, it does have harmful impacts on consumers. While 70% of consumers say they are still willing to pay more for organic, natural, or GMO-free products, rising prices create larger issues for those who can’t afford to keep up. Although healthy, top-quality, nutritious foods are a top priority for many consumers, several families must prioritize more budget friendly options over more expensive options like organic, natural, or GMO-free products.
Food insecurity also becomes a large issue, as 42% of shoppers say they are sometimes or often worried that their food will run out before they can afford to buy more.
Read more about how you can help combat food insecurity and increase access to healthy, nutritious foods in your community here.