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From chaos to convenience

How today’s grocery shoppers are coping with complexity

5-MINUTE READ

July 30, 2024

Navigating the new normal of grocery shopping

Remember when grocery shopping was simple, and dare I say, fun? I remember the excitement I would get from browsing the aisles for new items that I couldn’t wait to get home and try.

Nowadays, grocery shopping seems more like a chore. While it is intended to be a routine task to get the shopper in and out of the store, today’s grocery shopping experience looks much different. Consumers are bombarded with seemingly endless options and promotions in every direction, forcing the shopper to re-evaluate their strategy when walking into a store—from where to shop to what to buy to when they can find the lowest price.

One common pain point are high food prices—which are forcing consumers to make difficult decisions. It’s no surprise that grocery prices have skyrocketed since the pandemic and remain high. In the US alone, grocery prices have increased by up to 21% since 2021 and continue to rise in 2024, albeit at a slower pace.1 Salaries haven't kept pace with the rampant price hikes, making financial conditions seem worse off compared to before the pandemic. On top of that, government subsidies from the pandemic have stopped and supply chain challenges have run rampant.

While consumers have historically gravitated toward national brands, now many people simply can’t afford them. Those that are affordable often sell smaller quantities at the same price, a phenomenon known as shrinkflation, meaning consumers get less food for the same price. In the packaged foods aisle, the overwhelming array of alternatives, claims and price points leads to decision paralysis, prompting some consumers to visit another grocery store in the neighborhood, or abandon their purchase altogether. This article will outline the stress that today’s shopping experience is placing on consumers, and what grocers can do about it.

The grocery shopping experience is overwhelming the customer

Grocery shopping is meant to be a simple and routine task. Today, it has become complex and stressful. Shoppers are feeling anxious and overwhelmed as they try to make the right purchase decision. Our 2024 Consumer Pulse research reveals that overall, 41% of customers find decision-making harder than it was three years ago, and 56% feel it is more important to make the "right" decision now.2

Grocery shoppers now make multiple visits to grocery stores but are spending less time per visit. This translates into smaller shopping baskets per visit.3 Recent data shows customers bought groceries from an average of 20.7 different retailers between March 2023 and February 2024. This is up 23% from the same time frame between 2019 and 2020.

In addition to visiting more stores, shoppers are also traveling to cheaper ZIP codes to shop.4 From comparing prices and nutritional information to navigating promotional offers and ethical claims, the decision-making process is full of challenges and stress. Now more than ever, the grocery shopper is maneuvering advertising chaos, wading through multiple choices and analyzing hundreds of claims to be able to make a purchase decision that fits within their budget.

What’s causing the stress?

Analysis of grocery shopper data from our Consumer Pulse research across 12 countries reveals key areas that cause stress in the decision-making process. These are present across the three phases of the purchase journey: awareness, consideration and evaluation. 

Decision stress is the confusion, anxiety or overwhelming feeling that shoppers experience when trying to make the right purchase, and the workload involved in the decision process itself. About 70% of customers experience stress in finding suitable options and researching about them. Grocery shoppers experience significant stress in the evaluation state—80 percent of customers find it difficult to decide between various options.

Consumer Decision Tree from awareness to decision, showing 71% want faster option identification, 79% prioritize price, and 70% desire quicker research. Based on Accenture Consumer Pulse Research 2024.
Consumer Decision Tree from awareness to decision, showing 71% want faster option identification, 79% prioritize price, and 70% desire quicker research. Based on Accenture Consumer Pulse Research 2024.

Decision overload is causing customers to abandon purchases

The effects of these stressors are profound, leading shoppers to abandon their purchase altogether. Findings from our Consumer Pulse research reveals that 72% of customers have walked away from a grocery purchase in the last three months due to decision stress. This behavior is more common among younger generations, with 86% of Gen Z and 78% of Millennials reporting abandoned purchases.5

The primary reason why customers walk away from purchasing groceries is because the risk and cost of making the wrong choice is too high (26%). About 24% of shoppers feel that there is not enough time to make a thoughtful decision. The chart below provides an elaborate set of reasons that lead customers to abandon items.6

Bar chart showing reasons consumers abandon grocery purchases, including high risk/cost, lack of time, better options elsewhere, anticipation of better deals, and unreliable reviews, from Accenture Consumer Pulse Research 2024.
Bar chart showing reasons consumers abandon grocery purchases, including high risk/cost, lack of time, better options elsewhere, anticipation of better deals, and unreliable reviews, from Accenture Consumer Pulse Research 2024.

What can grocers do?

That’s the obvious question—so what can grocers do? The role of grocers in society is to feed people. However, grocers increasingly appear to be stuck in the middle. Shoppers demand for lower prices from grocers, while consumer goods companies continue to sell products to grocers at high prices. With a squeeze on margins, grocers are exploring alternatives.

Evaluate procurement, pricing and private labels:

Grocers are choosing to renegotiate procurement prices of food and beverage products with suppliers. Where the prices of national brands remain high, grocers are exploring the possibility of private labels. In 2023, private label accounted for 19.4% of global value sales of grocery. In Western Europe, private labels make for 36% of the market share.7

A strong private label strategy allows grocers to be in complete control of the production, procurement and pricing. Depending on customer demand, grocers are also reworking the right assortment of food products that they stock. Grocers and food retailers around the world are piloting the use of Digital Product Passports for food products to enhance transparency, traceability and sustainability.

Enhance the digital core:

Grocers like Tesco and Ahold Delhaize are piloting self-service kiosks that allow for customers to search for the product, review its features and have a seamless checkout experience. This allows customers to pick the right product at the right price point without having to physically search on the shelves.8 Customized mobile apps can allow customers to scan QR codes on products to access detailed information and reviews on smartphones. These apps can also offer personalized discounts and suggestions based on past purchases.

The Kroger app features QR code scanning for quick checkout using Kroger Pay, access to digital coupons and product information. The app's "Store Mode" allows customers to find items in-store, redeem coupons and enjoy contact-free payment, enhancing the overall shopping experience.9 These capabilities can be implemented by grocers on the back of a strong digital core.10

Embed data analytics and generative AI:

Grocers use data analytics to recommend products for online and in-store shopping via apps. Past shopping behavior like seeking best quality, lowest price, etc., are analyzed to develop suggestions. Smart apps can suggest product options for a recipe-based or an event-based requirements.

Customers now are more willing to use generative AI as an advisor for shopping.11 Grocers can deploy generative AI in their shopping apps and aid in various decision-making scenarios. Generative AI-driven applications allow customers to filter by constraints, such as a weekly budget, what’s already in the fridge, number of persons in the household, a party theme, etc. The app then provides the best suited products based on the prompt. Kroger and Target12 have pilots that use this capability of generative AI.

Transforming the grocery shopping experience

Grocery shopping has evolved from a simple chore into a complex task. It often requires the customer to navigate through innumerable offerings at multiple price points. Grocers can significantly ease the decision-making process for customers. Strategic initiatives that focus on procuring, pricing, enhancing the digital core and integrating generative AI can help. Grocers can reduce shopping stress by offering real-time updates, personalized recommendations and easy access to product information. As the landscape of grocery shopping continues to change, retailers who prioritize customer convenience and support will stand out in this competitive market.

WRITTEN BY

Laurent Thoumine

Senior Managing Director – Retail Lead, EMEA