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Key Takeaways
- A grocery-chain CEO listed a number of ways shoppers are looking to “focus on value” these days, including buying more store brands, using coupons and sticking to a list.
- But an ongoing effort to save doesn’t mean they aren’t also trying to eat healthier, the CEO of Albertsons said.
Americans aren’t done hunting for deals in grocery aisles.
Shoppers are looking to “focus on value,” the CEO of grocery chain Albertsons (ACI) said on a Tuesday conference call, adopting a range of strategies to save ranging from buying smaller to avoiding impulse purchases. The latest comments, from CEO Susan Morris, highlight a desire from consumers to make the most of their dollars as they navigate an uncertain economic environment.
Morris on Tuesday’s call highlighted a shift toward buying smaller package sizes and using more coupons. (The latter observation echoes one made recently by Kroger (KR), which once hoped to merge with Albertsons and has said a return to offering paper coupons has proven popular with some shoppers.) She also noted an enthusiasm for store brands, which other retailers have reported, saying they represent an “incredible upside opportunity.”
And she said shoppers are sticking to their plans when they hit the store, “maybe not buying that extra item, that extra bottle.”
What This Means for Consumers
If you feel like you’re fretting over what to put into—and leave out of—your grocery carts these days, you’re not alone. Americans are trying a range of tactics to stretch their food dollars, including making and sticking to grocery lists.
“They’re kind of shortening their list and sticking to it,” said Morris, according to a transcript made available by AlphaSense.
A range of merchants have pointed at “trade-down” activity showing up in the baskets of low- and middle-income families but also some higher-income households. In a sign of consumer resilience, some observers have reported signs that many who are seeking out savings are doing so to make splurges easier to justify. Credit- and debit-card spending rose 2% year-over-year in September, according to Bank of America, but the growth was more pronounced among wealthier households.
A push to save hasn’t meant less interest in healthy eating, Morris said, reporting continued growth in categories like functional—such as protein-enhanced—drinks, as well as fresh meat and produce. (Eaters’ fondness for protein has moved beyond the grocery store to the coffee shop, with Starbucks (SBUX) recently announcing plans to add it to cold foam.)
“The pressure continues,” Morris said. “We’re working very hard to give the customers what they want by market in a way that fits their budget.”
