Supermarket Perimeter - June 2024 - 11

Mixed bag
Prices in key grocery
food categories remained
stubbornly high in Q1 2024
while others dipped to new
lows compared to the same
period in 2023, according to
a new report from Catalina
Marketing. Value-conscious
families and on-the-go
shoppers felt the pinch of
much more nuanced matrix that combines
convenience, experience, relevance and
quality into the equation along with price and
sheer volume. "
Lack of movement
This spring, neither consumers nor operators
made major changes to their financial habits,
according to the latest Table Stakes report
from Datassential.
" Throughout the past month, none of
the economic metrics we track for both
consumers and operators have experienced
any major movements. Over half of operators
still expect higher traffic and sales level, and
nearly 60% of consumers still expect their
future finances to remain unchanged. "
More consumers are expressing hesitation
around dining out than in previous months,
but it's unclear if this pattern will persist going
forward, according to the report.
Inflation and labor costs remain the most
pressing concerns for operators across all
segments, and nearly half plan on spending
the next month actively strategizing to reduce
food costs.
As for consumers, while nearly 75% still
express concerns around the lingering effects
of inflation, only two in five are presently
worried about international conflicts and
crises - the lowest this figure has been since
January 2024.
inflation more than most in Q1
2024, according to Catalina's
Shopping Basket Index, which
analyzes the cost fluctuations
of products in 10 common
product categories in the U.S.
" Our latest data shows
grocery inflation has dropped
considerably from a year
ago " in some categories,
said Wesley Bean, US Chief
Revenue Officer at Catalina.
" While this is positive news
overall, it's important to
remember the impact isn't
felt evenly. Value-conscious
shoppers are still grappling
Consumer spending on weekly groceries
has reached an average of $165 per
household, up from $121 in 2020.
Over 50% of consumers report hunting for
deals as a popular cost-cutting strategy, along
with buying more private brands (41%), buying
fewer items (32%) and buying in bulk (23%).
At least 70% of Gen Z and
millennials compare price points
across products in a single store and
across products between stores.
Source: FMI - The Food Industry Association
supermarketperimeter.com
JUNE 2024 - 11
with significant price increases
on essential items, even as the
broader inflation rate cools. "
The 3% average Q1 inflation
rate from Catalina's data
was on par with the overall
3.5% inflation rate reported
in March's US Consumer
Price Index (CPI).
" Because inflation rates
continue to vary by grocery
category, retailers and brands
have an opportunity to refine
their shopper marketing
strategies to attract brand
switchers and remind loyal
shoppers of the value of
their brand, " Bean said.
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Supermarket Perimeter - June 2024

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