Alabama Grocer 2022 Issue 4 for Print Final

HOLIDAY FLEXIBILITY INDUSTRY NEWS

Jennifer Hatcher Chief Public Policy Officer & Senior Vice President Food Marketing Institute

GROCERY SHOPPERS REMAIN FLEXIBLE FOR THE HOLIDAYS AMID INFLATIONARY ENVIRONMENT

As we headed into the end-of-year holiday stretch, FMI released the sixth installment of our U.S. Grocery Shopper Trends 2022 series called “Holiday Shopping” in mid-October. Timed to coincide with the increase in consumer demand around holiday celebrations, this report looked at how shoppers are maximizing their grocery budgets in an inflationary environment as they plan for special occasions like Thanksgiving, December celebrations, and New Years. The majority of shoppers told us they are seeing higher prices on many needed household items, as expected given the ongoing and persistent food price inflation and supply chain challenges we’ve seen this year. Fortunately, though, consumers also indicate they feel that they have at least some degree of control over their finances, particularly when it comes to their grocery shopping. Within the context of holiday spending more broadly, shoppers are most concerned about the price of holiday meals (45%), even more than travel or gifts. However, most consumers are adjusting their holiday meal shopping (71%) to address rising food prices. These adjustments include looking for deals, buying more store brands, substituting ingredients for more affordable options and sharing responsibilities for the menu, such as

encouraging potluck dishes for their holiday gatherings. Our research also found that the majority of shoppers (62%) are spending more at the grocery store compared to a year ago, which is to be expected. However, despite fears about inflation, average weekly household grocery

spending has held steady at $148 over the last six months. This is down from $161 per week at the height of the pandemic, but higher than the 2019 pre-pandemic average of $113.50. The mismatch in consumers’ perceptions about spending more and what they report spending on a weekly basis could be a function of aspirational thinking. In

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