They came for the prices. They may stay for the convenience and quality.
Visiting discount grocery stores is becoming more popular as a savings strategy these days. But that doesn’t mean shoppers are slumming it. Increasingly, they say the discount store brands – and the stores themselves – are just as good as the brands and stores they’re leaving behind.
Alvarez and Marsal’s Consumer and Retail Group surveyed shoppers for its recent Fall 2025 Consumer Sentiment Survey, and found “a shifting landscape in grocery shopping behavior.” More grocery shoppers of all income levels are incorporating more store brands and discount stores into their shopping routines – and they’re not necessarily inclined to switch back once their financial situation improves.
Among those tightening their grocery budgets, about half said they’re switching to less expensive brands. 20% are simply buying fewer groceries, and only 16% are switching to lower-priced stores.
But “switching to” and “increasing visits to” lower-priced stores are two different things – and many more shoppers are doing the latter. 59% of all shoppers report increased trips to discount grocery stores. They may not be doing all of their grocery shopping there, but they are going more often, looking for better prices on household staples than they can get at their regular grocery store.
Even higher-income shoppers are looking to save money at discounters, at an even higher rate than those with less money to spend. That led Alvarez and Marsal to conclude that “consumers across the spectrum are reflecting a concern over increasing prices at traditional grocery outlets and are adjusting their spending habits to manage household budgets.”
And it’s not just prices that are attracting shoppers to discount grocers. About two thirds of survey respondents said the cleanliness, selection, service and convenience of discounters is comparable to traditional grocery stores.
In addition to shifting towards lower-cost stores, shoppers also feel positively about the store-brand grocery items they find there. 80% said store brands are more affordable, and two thirds said the quality is just as good as, or better than, brand names.
And, once again, higher-income shoppers are driving that shift. 82% have increased their frequency of purchasing private label products, as compared to 74% of lower-income shoppers who said the same.
“Amid economic uncertainty, value continues to be a top priority for all consumers,” Alvarez and Marsal concluded. And when it comes to seeking out better products at lower prices, “brand loyalty continues to be tested and appears to be waning.”
The country’s largest retailer says it’s witnessing this shift in action. “We’re gaining market share in grocery and general merchandise… especially with higher income households,” Walmart CEO Doug McMillon said last month. And discounters like ALDI are seeking to capitalize on the growing demand for deals, by continuing to open hundreds of locations across the country.
In the current economic climate, “lower-income groups are pulling back,” Alvarez and Marsal noted, while “higher-income households remain confident.” But in this time of economic uncertainty, more of those higher-income households are switching brands and switching stores in search of better deals – just in case.
Image source: ALDI
