Author: Victor Texcucano, Content Coordinator, RAB
Inflation is apparently cooling. Well, at least that’s what some of us keep hearing. Grocery shopping, however, still feels like it is draining our bank accounts. Things are improving, however, but food retailers should promote savings to reach cost-consumers in their area.
Per recent Consumer Price Index data, groceries make up around 8% of the typical American’s budget, and the Bureau of Labor Statistics’ Consumer Expenditure Survey data shows that number jumps to 11% for those in the bottom fifth of income distribution.
Grocery stores and supermarkets sell things we all need on at least a weekly basis. And while many of us are still shocked when we see the total price for groceries, economists keep telling us things are not as bad as they once were.
While inflation has fallen below 3% for the first time since 2021, some food prices at groceries stores remain stubbornly high. Dining out, however, is worse, as prices have risen 4.1% over the last 12 months.
A Nerdwallet article says the (still) high cost of food is due to the combined impact of:
- High production, labor and fuel costs still impact every aspect of food production.
- Supply chain disruptions caused by global events (Russia-Ukraine war), weather events and disease that has affected many essential crops and livestock.
- Corporations that seek to maintain – or increase – profits.
There is a silver lining, however. According to a June article from whitehouse.gov, while grocery prices are still above what they were pre-pandemic, wages have also increased. Since wage growth has outpaced food price growth, it actually takes about the same number of hours (3.6 hours) for the average nonmanagerial consumer to buy a week’s worth of groceries as it did in 2019.
Despite this, The Food Industry Association’s recent U.S. Grocery Shopper Trends: Return to Routine report, 39% of shoppers said they are concerned about being able to afford the food they need, which is down from 42% in July/August of 2023.
In these inflation-filled days, it is crucial for food retailers to reach price-sensitive consumers. So, what’s the solution? Grocery stores and supermarkets need to alert consumers in their areas about sales and promotions in their stores.
Consumers are weary of high food prices, and they long to hear about savings. Scarborough data notes that radio reaches 82% of consumers who have spent $100-$149 on groceries in the past seven days. It also reaches 85% who spent $200+ on groceries. Additionally, per MRI-Simmons, 63% of consumers who report shopping around to take advantage of specials and bargains also listen to radio. Sixty-three percent of those who say they go out of their way to find new stores are radio listeners.
Grocery shoppers who love savings also love coupons. They also are avid radio listeners. Sixty-six percent of radio listening shoppers have been grocery shopping at least four times in the last 30 days, per MRI-Simmons. Sixty-three percent of coupon users tune into radio.
Eighty percent of those who have purchased groceries online in the past month frequently cook meals at home and 61% of them are radio listeners. Since price-conscious shoppers are very likely cooking their meals at home, this is an important consideration for food retailers. As food retailers go to market, using radio to promote savings, digital coupons as perhaps even grocery cost-cutting tips would resonate greatly among inflation weary consumers. A concerted effort by grocers to address and recognize price concerns while using a trusted local medium like broadcast radio, may also experience growth in consumer loyalty.
As inflation and costs remain top of consumer’s minds, radio can help spread the message that countless consumers long to hear, that savings and promotions are abound at their local grocery stores.