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Inside Retail & Focus Insights

The three ways grocery shopper behaviour is changing right now

(Source: Bigstock.)

From the pandemic and product shortages to a global supply chain crisis, floods and bushfires and now, inflationary pressures, consumers have been on a wild rollercoaster in the past two years. 

As a result of these major shifts in the economic climate, consumer behaviour has changed in a multitude of ways in a short period of time. After all, it wasn’t long ago that the buzzwords “revenge spending” and “revenge travel” were being discussed in the industry. Now, in a 180-degree turn, consumers have tightened their purse strings in response to inflation. 

“We know from studying human decision-making behaviour that many of our everyday choices become set, or habitual. Once a choice becomes habitual, change is hard, so it becomes hard for brands to break through. 

“Change occurs when a shopper’s habitual behaviour is interrupted by either triggers or barriers. Before the past two years, we were seeing changes come from internal triggers within shoppers,” explained Stephen Paton from Focus Insights.

“But the pandemic, overseas conflicts, bushfires have combined to place some incredibly strong barriers in shoppers’ ways… Our view is this creates a shopping environment rich in the possibility of change.”

An upcoming report from Focus Insights focused on grocery will further explore in detail how these behaviours have changed. Are these changes going to stick for the long term? How does this new shopping environment make shoppers feel, and what are their intentions going forward? 

Below are just a handful of some of the triggers that have changed consumer behaviour and how they have impacted the way people are now shopping.

Inflation triggers alternative ways of shopping

Rising interest rates and the increased cost of living are now weighing on consumers’ minds and as a result, they’re considering how to get more bang for their buck when they’re at the supermarket.

“There’s a heightened awareness around the cost of living pressures. We do a lot of work with the suppliers, and they’re having the same issues,” explained Deane Hubball, CEO at Focus Insights. “They’re truly aware of the price increases through their supply chain, and a lot of them aren’t willing or able to put that entire price increase through to the customer, because they know the impact.”

Hubball suggested that in the next six to 12 months, e consumers will look for better cost solutions, whether that be from buying in bulk, looking for substitute products (ie cabbage in place of lettuce) or buying though alternative channels such as online or direct from farm.

Stock shortages are inspiring consumers to try new brands

As we all know, toilet paper shortages began in 2020 and unfortunately, product shortages continue to this day and many supermarkets have brought back purchasing limits to manage the problem. According to Focus Insights Regional Director Michael Jackett, these shortages have inspired consumers to venture beyond their usual tried-and-true brands and purchase new products

“In a lot of our studies, we’re seeing more and more people say that if an item’s not available, they’ll just buy the alternative, which then really opens up that opportunity for challenger brands,” he said. 

“On the other hand, if your product is suffering from shortages, it’s actually turning people away from your brand.”

The pandemic has led to a rise in better-for-you products

Even before Covid hit, people were starting to focus on healthier eating habits, which has only increased in the past two years. Since food technology and product development have evolved particularly around plant-based meat, more consumers are becoming more open to giving it a go.

“We found that nine out of 10 consumers don’t have a medical or dietary need to to eat healthy – they’re not coeliacs or diabetics – but there’s now a strong sentiment towards eating better-for-you products in the mainstream, as people are looking to be more healthy with their food and beverage choices in general” explained Hubball. 

“You’re starting to see gluten-free biscuits in the traditional choccy biscuit aisle. I previously worked on the supply side of the confectionery category, which was a traditional bars-and-blocks area, but now people are going into that aisle to find that a 3pm pick-up is not a chocolate bar, but a protein ball or low-carb energy bar.” 

To find out more about Focus Insights, visit: focusinsights.com.au