More than a third of Australians have observed that grocery prices are increasing, at a time when income levels are constrained by the pressures of the coronavirus pandemic.
The insight is drawn from a recent report by customer data science analysis agency Dunnhumby, following a survey of local consumers. The report also found that 62 per cent of the survey’s respondents are making fewer excursions for shopping while 57 per cent are shopping at fewer stores, preferring to make their purchases from a single retailer – underscoring the importance for retailers of value perception and product assortment.
Australians are showing concern that the pandemic will have a lasting impact on their personal financial situation as well as the economy in general. More than three quarters who answered said they see the Australian economy as being in bad shape.
“Now more than ever, shoppers want a good deal. Regardless of price increases, it is still the perception of price and value that matters,” said Dunnhumby Australia MD Kylie Gleeson-Long.
“Retailers must ensure they are using data to inform their strategies on which levers to pull to ensure customers feel better off, whether it’s base prices, promotions, assortment, personalised offers, communications, own label, store or online customer experience.”
The survey suggested a gradual tendency towards pre-coronavirus shopping habits, with 84 per cent signalling a return to shopping in stores as opposed to online, while 38 per cent are spending more per trip, reflecting a continuing habit of dining at home.
Footnote: The Dunnhumby Covid-19: Australia – Attitudes and Behaviour report surveyed the shopping attitudes, behaviours and satisfaction of 400 consumers in Australia from July 9-12.