Good news for grocery retailers as the holiday season goes into full swing with the Thanksgiving holiday: nearly 1/3 of shoppers intend to spend more on groceries this holiday season than they did last year. ¹ That includes 36% of omnichannel shoppers, 28% of in-store only shoppers, and 15% of online-only shoppers. ¹

These holiday shoppers will be looking for convenience:

• 77% plan to use digital channels for at least some of their shopping.¹
• 61% intend to use curbside pickup more this year.¹

This holiday projection comes on the heels of a record $10.5 billion in grocery e-commerce sales in October, a 28% increase over October 2023.² Delivery accounted for nearly 46% of online grocery in October, while pickup orders comprised 40%, and 14% of orders were ship-to-home.²

But the good news for grocery retailers doesn’t end there.

Grocery’s Cost Advantage

Grocery retailers continue to enjoy an advantage with cost-conscious consumers, as grocery inflation remains 2.7% lower than restaurant inflation as of October.³ Grocery retailers who prioritize value and offers in their messaging have an opportunity to keep price-conscious consumers engaged while acquiring new customers seeking to save money.

Did you know?

Approximately 49% of grocery customers plan to splurge on home cooking as opposed to dining out.⁴

While groceries may offer a cost advantage over restaurants, consumers remain vigilant about price increases.

57% of consumers surveyed in November 2024 said they are seeing price increases in the grocery category. ³ In response to price increases, these consumers are:

• Looking for sales, 38%³
• Researching deals and prices online, 29%³
• Using more coupons, 24%³
• Buying more store brands/generic products, 39%³
• 43% of customers are willing to travel extra miles to save money on groceries. ⁴

Price remains the number one factor in choosing a grocery retailer at 58% of consumers, followed by:

• High-quality products, 45%
• Coupons and discounts, 41%

Engage these price-conscious consumers with value-focused advertising and targeted offers to acquire new shoppers and build loyalty among current customers.

Multi-channel Grocery Marketing to Acquire Cost-Conscious Consumers

Understanding how grocery shoppers respond to advertising is the first step in planning a grocery marketing strategy that drives results. ⁴

Grocery Shopper Advertising Response in the Past 12 Months:

Source: AdMall 2024

There is a growing reliance on digital tools for smart shopping, as consumers are prioritizing finding the most value for their money with their grocery dollars.

• In the U.S. in 2024, about 59% of total coupon redemptions were from grocery stores.⁴
• Grocery shoppers are 18% more likely to make buying decisions based on coupons they have. ⁴
• Mobile phones are frequently used to compare prices across stores. ⁴
• 14% of grocery shoppers have found coupons/discount codes online in the past 30 days. ⁴

A targeted, multichannel campaign strategy that places your message in front of your target audience in their mailbox and on their devices is key to acquiring new grocery customers seeking value and savings as well as retaining loyal customers.

• 55% of grocery store customers value personalized discounts.⁴
• 47% of grocery shoppers prioritize personalized messages, offers, and recommendations. ⁴

Learn how other grocery retailers have partnered with Mspark to achieve their marketing goals in our grocery case studies. Click “get started” below to connect with a specialist to discuss your strategy.

Sources: The Omnichannel Shopper Will Spend Big This Holiday Season, supermarketnews.com, October 30, 2024¹; Grocery E-commerce Surges in October, Stoked by Promotions, grocerydive.com, November 14, 2024²; Prosper November 2024³; AdMall 2024⁴