While grocery prices may have stabilized in recent weeks, many US consumers still feel pinched and in order to stretch their food budgets they are visiting grocery stores more often – a counterintuitive finding revealed by new data from Circana.
The consumer market research company reports American households on average visit grocery stores 222 times annually – up from 200 trips in 2021. But this does not mean they are buying or spending more, according to the data.
Circana reports that the price per unit across all food and beverage in its MULO+ universe in July was $4.34 – the same as a month earlier, but up 2.8% from a year ago. The numbers align with data released earlier this week from the US Labor Department that found overall food prices in July held steady month-over-month, and even decreased slightly (0.1%) for food consumed at home.
Stabilizing month-over-month prices may be cold comfort to many US consumers given prices for total food and beverage in July is up a staggering 9.9% from three years ago, according to Circana.
To stretch their grocery budgets, consumers are shifting where they shop, what they buy and when, Circana data reveals.
For example, fewer consumers are shopping from supermarkets, which Circana notes are known for their hi-low pricing - preferring instead to buy food at mass, club and e-commerce stores where they perceive the prices to be lower and promotions greater.
Check out how consumers’ changing habits are playing out in the bakery, protein categories and frozen:
