Redefining grocery in a post-pandemic world

Amid concerns about whether shoppers would return to stores post-pandemic, a less-observed development has been consumers redefining what they regard as grocery items.

Why it matters

This change in mindset also changes where – and how – consumers shop for these items, according to data and news site PYMTS. The pandemic pushed people toward online shopping and while they’re now returning to stores, they’re not necessarily seeking out the same things when there.

PYMTS wonders if grocery stores may face the same fate as department stores, with consumers increasingly regarding grocery purchases as they would any other product: just as likely to be purchased online or at a specialty physical retailer. Grocery stores could face a vicious circle of declining footfall leading to fewer SKUs being stocked, which then leads to a further decline in footfall.

What’s happening

According to data from PYMNTS:

• Three years ago, 80% of US consumers classified canned goods, cooking supplies, condiments and spices as grocery products; in 2023 that figure has fallen to 60%.
• 44% fewer consumers say they buy at least some of their cleaning supplies at the grocery store.
• 24% fewer consumers habitually pick up health and beauty products as part of their grocery shopping.
• Six in 10 (62%) consumers cite convenience as the reason for buying fewer things at the grocery store and more online.
• Purchases of both canned goods and cleaning supplies by subscription increased at least 35% over the last three years; purchases of baby products by subscription grew 77%.

The brand opportunity 

Brands are likely to need to develop more nuanced strategies – finding ways to offer deals to attract instant sales on grocery marketplaces like Instacart while also tapping subscription offerings like Amazon Subscribe & Save. These can tie in consumers for longer periods – especially for items they buy repeatedly and without thinking about too much.

And in the physical world, a presence in local specialty stores (and their websites where consumers are searching) can drive a trial of new or high-value products.

Sourced from PYMNTS