Research from The Feedback Group reveals that shoppers believe their primary grocery store enjoys a net profit of 33%. This is far from the 1% historical net profit and the 3% net profit reported in 2020, according to The Feedback Group and FMI.
“Clearly, grocery shoppers believe that the stores they shop are far more profitable than they actually are,” said Doug Madenberg of The Feedback Group. “This inflated view of profits certainly leads some shoppers to think that food stores simply aren’t doing enough to keep prices down.”
The study also found 38% of consumers are buying more store brands. Nearly four out of 10 grocery shoppers indicated they have been buying more store brands instead of national brands, and our research shows that 75% of shoppers agree that the prices of private or store brands were a lot less expensive than national brands. The study surveyed 1,200 shoppers.
The Feedback Group found that in addition to buying store brands, shoppers are employing a wide range of strategies to cope with inflation, such as purchasing more food and groceries at stores with lower prices (cited by 46% of those surveyed), eating more often at home instead of at restaurants (46%), buying more items on sale (43%).