Walk into any store or visit any retailer’s website, and it’s all about gift giving and holiday shopping. But regardless of what the calendar says – we’ve still got to eat.
Despite – or perhaps because of – a ramp-up in spending on gifts this time of year, shoppers are looking for deals at the grocery store, too.
“Inflationary pressures remain a significant concern, pushing consumers to be more mindful of their spending even as they prepare for holiday gatherings,” NIQ observes in its “Holiday Grocery Outlook 2024: What Consumers Want” report, one of several recent grocery-themed holiday season surveys.
NIQ found that grocery shoppers are prioritizing deals, promotions and bulk purchasing to stretch their budgets. “As such, value-oriented retailers, along with club and warehouse stores, are likely to see an uptick in holiday traffic,” it predicted. That said, for some, saving time is as important as saving money, with 44% of shoppers saying they’re likely to spend more for convenience, ranging from heat-and-eat prepared meals to boxed and instant food products. So NIQ advises retailers to “focus on providing true value” based on what shoppers are seeking, “and not just low prices.”
Still, FMI – The Food Industry Association is warning retailers not to skimp on those low prices. Its U.S. Grocery Shopper Trends: Holiday Shopping report finds that a majority of shoppers are still very or extremely concerned about their ability to pay for groceries. In fact, even with the holiday shopping season well underway, two-thirds are most concerned about rising grocery prices, as compared to just one half who say the same about the price of holiday gifts.
That could be because scaling back on gift-giving is somewhat easier than scaling back on food. 82% of shoppers say getting good value when grocery shopping is a top or high priority, and 55% say it’s more important now than a year ago. Among those most concerned with higher prices, more than half say they’re looking for more deals, while others are buying more store brands, buying fewer items or only buying things when they’re on sale.
A third holiday grocery survey finds that many shoppers are resigned to spending more this season. Grocery Doppio’s Shopper Holiday Outlook predicted a 6.3% increase in grocery spending over the holidays, with more than a quarter of shoppers saying they intend to spend more on groceries this season than they did last year. “A combination of inflation, larger family gatherings, and the relief of the election being over will create a pendulum effect after a year of restraint,” Grocery Doppio’s Chief Insights Officer Gaurav Pant said in a statement.
Expecting to spend more, and wanting to spend more, are two different things, though. So NIQ says deals are still important. “Offering special seasonal discounts and well-timed promotions can help retailers capture price-sensitive shoppers,” its report advises.
And FMI, pointing to the latest government inflation figures, is optimistic that slowing inflation will help boost shoppers’ financial confidence as they plan for holiday meals and get-togethers. “The good news for consumers is that many traditional items will cost less than last year,” FMI Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig said in a statement. “The food industry is rising to the occasion to assist shoppers in managing their grocery budgets this holiday season.”
Whether in the form of promotions, meal deals or lower everyday prices, the more savings that we can all enjoy on food and everyday essentials, the more money we’ll have to spend on gifts. And that could make everyone’s holiday season happy this year.
Image source: Target
