The quest for savings is changing Americans' shopping habits and driving more and more consumers toward supermarkets and discount chains. This is according to a new report from consulting firm Alvarez & Marsal, which finds that cost containment is no longer simply a matter of choosing cheaper brands, but increasingly involves the decision to switch stores entirely. According to the survey, 42% of US consumers plan to shop at less expensive stores this spring, a sharp increase from 31% last fall. This shift, according to analysts, marks a significant shift in grocery retail dynamics.
"The new trend is a shift from trading down on brands to trading down on retailers," the report highlights, emphasizing how customers are increasingly oriented toward brands perceived as affordable without necessarily giving up their usual brands. Among consumers intending to switch to cheaper retailers, over half said they intend to continue purchasing the same brands, while the remainder also plan to replace the products with more affordable alternatives.
At the same time, the share of customers simply choosing cheaper brands while remaining loyal to their usual supermarket is decreasing: 35% of those surveyed said they plan to choose cheaper brands in the same store, a decrease of 14 percentage points from last fall. A portion of consumers, approximately a quarter of the sample, do not intend to change brands or brands, but simply plan to purchase fewer products to reduce their overall spending.
For Alvarez & Marsal, this represents a significant transformation in consumer behavior, with consumers now approaching food shopping more rationally and selectively. Value, according to the report, has become the primary criterion for choice across all income brackets. This trend is also being fueled by the improved perception of discount stores and low-cost retailers. More and more consumers consider these brands valid alternatives to traditional supermarkets, not only economically but also in terms of the quality of their service and shopping experience.
Sixty-eight percent of respondents believe discount stores are as clean as traditional supermarkets, while 63% say customer service is just as good. According to the report, the longer customers have positive experiences at these stores, the more difficult it will be for traditional retailers to win them back. The survey also highlights that grocery remains the only area in which American consumers plan to increase spending. Households with annual incomes of more than $100,000 estimate a 22% growth in food and beverage spending, compared to a 3% increase expected by lower-income groups.
Finally, the positive momentum of private label continues. In addition to their affordability, private label products are increasingly appreciated for their quality and ability to meet consumers' dietary needs and lifestyles. More than two-thirds of respondents believe that private label products meet their nutritional needs or offer superior quality compared to mass-produced brands. The Alvarez & Marsal report is based on a survey of approximately 2.100 US consumers conducted last February.
