Data firm dunnhumby has found consumers continue to opt for store brands, among other methods, to fight inflation.
Its latest Consumer Trends Tracker report found are paying close attention to prices and low prices have become important across all income levels, even among affluent shoppers. Among households making above $100,000, 73% reported that low base prices are important, an increase of 7% from dunnhumby’s last consumer survey.
Overall, consumers are switching to purchasing store brands in a few key categories. According to the report, 83% of those surveyed are seeking cheaper alternatives to the products they usually buy in at least one category. The top three categories where consumers are seeking lower prices and switching to store brands are packaged food (53%), common household products (52%) and frozen food , which 42% of those surveyed cited.
But it is not only categories where consumers are seeking lower prices. The report found that many consumers are shifting spending towards the dollar channel. Since April-May 2022, dollar stores’ share of wallet has increased 2.1% (17.8% to 19.9%) while specialty / premium stores have decreased 1.1% (18.7 to 17.6%), according to dunnhumby. In fact, shopping at stores with lower prices was found to be the most common shopper behavior with 59% of those surveyed reporting they do this most of the time to fight inflation and save money.
Two-thirds of U.S. consumers report they would have difficulty covering an unexpected expense of $400 or more, an increase of 4% when compared to results in April-May 2022. The study also found financial insecurity lowest in Wisconsin, Maryland, and Washington, and the highest in 77% in Louisiana and Oklahoma.
The dunnhumby Consumer Trends Tracker surveyed 2,000 U.S. shoppers in July of 2022.