Supermarket Shoppers Are Stressed Out: Report
Market research company The Feedback Group has released findings from its latest national research study, "Supermarket Shoppers: Rising Prices, Inflation, and Tariffs." The research explores shopper perceptions surrounding prices, inflation and tariffs, and how these concerns are impacting consumer behavior in supermarkets.
A significant 61% of U.S. supermarket shoppers report feeling stressed about rising grocery prices. This stress is especially pronounced among younger and middle-age shoppers — Generation X (70%), Millennials (67%) and Gen Z (65%). Top inflation-fighting tactics include buying more items on sale (62%), eating more often at home (50%), buying more store brands (42%) and using a store's weekly sales flyer (40%).
Grocers are aware of rising tension concerning prices and many have implemented cost-cutting initiatives. ALDI U.S., Tops Markets, Wegmans, Meijer, The Save Mart Companies, Giant Food and El Rancho Supermercado are just some of the retailers dropping their prices.
But shoppers aren't putting the blame of higher prices squarely on grocers' shoulders. When asked about the factors contributing to higher supermarket prices, The Feedback Group found that shoppers once again pointed to government policies and actions as the most responsible (mean score 4.11 on a 5-point scale), a notable increase from 3.86 in 2024. Next on the blame list were product manufacturers and suppliers (3.49), wars and worldwide conflicts (3.39), and supermarket retailers (3.22). Farmers and growers were viewed as least responsible (2.69).
The belief that government policy and suppliers are driving price hikes shouldn't come as a surprise as new trade policies, tariffs and agreements are changing almost daily, resulting business uncertainty for many in the supply chain.
The Feedback Group's study found that 95% of shoppers were already aware of proposed tariffs before being surveyed. Among tariff-aware shoppers, many expressed concern that tariffs would impact their grocery bills, with nearly half (47%) saying they were "very concerned." A majority (83%) expect tariffs to increase prices — 49% believe prices will rise significantly and 34% somewhat.
If tariffs lead to higher prices, shoppers say they are most likely to switch to store brand or lower-cost items (41%), use more coupons or promotions (35%), or buy fewer groceries overall (34%). Notably, eight in 10 shoppers already believe private label prices and quality compare well to national brands.
Grocers are taking note of consumers' response to private label. For example, Albertsons Cos. recently launched a new own brand, Chef’s Counter, to meet growing consumer need for cooking meals at home. Chef’s Counter is first debuting with a selection of ready-to-cook marinated meats. The new store brand will expand to deli and frozen sections, as well as in center store next year.
[RELATED: Consumer Trust in Private Label Offers Growth Opportunities]
Additionally, Lidl US recently introduced its first-ever private label meat line – Butcher’s Specialty. According to Lidl, Butcher's Specialty is a curated selection of the freshest meats and the best cuts, with “no shortcuts, no additives and no compromise.”
Despite efforts to accommodate budget-conscious consumers, The Feedback Group research confirmed that retailers must strengthen communication around inflation and pricing.
Shoppers gave supermarkets relatively low ratings for being on their side when it comes to inflation (3.34), explaining price increases (2.97) and discussing tariff impacts (2.46).
As a result, shoppers continue to significantly overestimate supermarket profits, believing them to be, on average, at 30% when The Feedback Group reports that net profit margins actually register in the 1-3% range. And this perception has persisted for years.
The Feedback Group recommends food retailers enhance transparency with their shoppers, stating, “Clearer communication around price drivers can help rebuild trust during uncertain economic times.”
The research findings are available here to supermarket retailers, distributors and food industry companies.
The Feedback Group offers a broad spectrum of research, consumer insight, and consulting services. The Lake Success, N.Y.-based company provides services include employee experience assessments, customer satisfaction programs, and consumer perception studies, as well as national, regional and local shopper studies.
