The CEO of Albertsons, Susan Morris, has stated that American shoppers are not done hunting for deals in grocery aisles, highlighting consumers' focus on value amid an uncertain economic landscape. During a Tuesday conference call, Morris revealed that consumers are utilizing various strategies such as purchasing smaller package sizes, using more coupons, avoiding impulse purchases, and showing a preference for store brands. This trend shows a conscious attempt by American households to make the most of their grocery budgets.
This trend isn't limited to low- and middle-income households - higher-income families are also participating in what merchants refer to as "trade-down" activity. However, the drive to save doesn't indicate a decreased interest in healthy foods. Morris reported consistent growth in the purchasing of categories like protein-enhanced drinks, fresh meat, and produce. Profit from credit and debit card spending grew by 2% YoY in September, with a noticeable increase among wealthier households.
While some consumers are chasing savings to justify luxury purchases, Morris highlights that customers are sticking to grocery lists and sometimes leaving out unessential items. "They're kind of shortening their list and sticking to it," Morris remarked. These trends signal an overall effort by consumers to stretch their food dollars amidst growing financial uncertainty. Morris concluded by emphasizing Albertsons' commitment to serving its customers' needs and accommodating their budgets.