2|trendsource
First thing’s first. Though we take it for granted, we
needed to establish that consumers have a favorite
grocery store in order to understand how they go
about ranking and choosing between them. As
shown in the chart on the left, the vast majority
(76.5%) of our respondents do indeed have a
favorite grocery store.
Interestingly, a whopping 92% of the silent
generation has a favorite store, 10% to 20% more
than any other generation. While this tells us a lot
about the corporate relationships our elders
maintain, as well as the force of habit that
seemingly compels them, it is interesting to note
that loyalties of younger generations are,
comparatively, more up for grabs.
Yet we also must address the Millennial 1s, whose
81% sticks out among relatively smaller numbers
from Millennial 2s, Gen Xers, and Baby Boomers.
How and why have the youngest consumers
already established a favorite grocery store at such
a high rate We think it has to do with cost, a pain
point to which the youngest generation is
particularly sensitive.
A FEW OF CONSUMERS’ FAVORITE THINGS
76.42%
23.58%
YES
NO
DO YOU HAVE A FAVORITE GROCERY STORE
18.2%24.1%23.3%
27.0%
8.0%
Millennial 1Millennial 2Generation XBaby BoomerSilent
81.8%
76.7%75.9%73.0%
92.0%
INTERESTINGLY, A WHOPPING
92% OF THE SILENT GENERATION
HAS A FAVORITE STORE,“
OVERALL
BY GENERATION
NO YES
3|trendsource
PRICE/VALUE IS THE PRIMARY
REASON RESPONDENTS CHOOSE
THEIR FAVORITE GROCERY STORE“
WHAT IS YOUR PRIMARY REASON FOR SHOPPING
AT YOUR FAVORITE GROCERY STORE
37%
21.4%
15.7%
12.1%
5.4%
4.6%
2.6%
0.4%
0.7%
SA
LE
Indeed, overall, price/value is the primary reason
respondents choose their favorite grocery store, with
37% prioritizing it over product quality (21.4%), location
convenience (15.7%), and rewards (12.1%).
Grocers, of course, know that pricing is priority 1, but
with margins already razor-thin, pricing can become a
zero-sum game where stores price themselves out of
profit. Thus, while it is important to remember that
price/value has the most appeal, grocers must look to
other differentiators to stand out in a discounted sea of
sameness.More on that later.
0510152025303540
Price or value
Product quality/availability
Convenience of location
Rewards
Customer experience
Customer service
Sustainable or responsibly-
sourced products
Specific brand
None of the above
4|trendsource
05
10152025303540
39.9%
35.9%
27%
22.3%
18.9%
26.1%
14.3%
16.5%
21.6%
13.1%
11.4%
11.7%
4.5%
6.2%
6.3%
3.3%
6.2%
3.6%
2.1%
3.2%
2.7%
.3%
.8%
0%
.3%
.8%
.9%
less than $40,000 $40,000-$100,000 more than $100,000
IF THE WEALTHY ARE YOUR
PRIMARY MARKET, FEEL FREE TO
EMPHASIZE QUALITY OVER COST.“
BY INCOME
Price or value
Product quality/availability
Convenience of location
Rewards
Customer experience
Customer service
Sustainable or responsibly-
sourced products
Specific brand
None of the above
WHAT IS YOUR PRIMARY REASON FOR SHOPPING AT
YOUR FAVORITE GROCERY STORE
When breaking respondents into segments
based on income and diet, we find that price
and value remain important but with some
expected exceptions.
The higher the respondent’s income bracket,
the less they prioritize price—whereas 39.9%
of respondents with household incomes
below $40,000 prioritize price, only 27% of
those with household incomes over $100,000
are similarly inclined.
If the wealthy are your primary market, feel
free to emphasize quality over cost.。