Why one-stop grocery shopping no longer exists
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The days of getting the weekly groceries at a single store are long gone.
Why it matters: Consumers are increasingly hitting up multiple grocery stores as they stock the fridge to save money and find exclusive items. Blame it on inflation and the rise of the private store brand.
- The Wall Street Journal recently dubbed the end of the era of the one-stop grocery shop as a move to "treasure-hunt grocery shopping."
- The average shopper purchased grocery items at 20.7 unique retailers between March 2023 and February 2024, data company Numerator found.
- "Consumers have more options than ever before when it comes to their grocery shopping," Amanda Schoenbauer, Numerator analyst, told Axios.
- They "can more easily switch up where they shop to take advantage of deals and to capitalize on convenience," Schoenbauer said.
The big picture: Your Sunday shopping errands take a lot longer!
- That's the deal when you stop by Costco, the local supermarket or markets (we see you, BOGO sales), Trader Joe's, Whole Foods Market, Aldi, Walmart, Target and so on.
- For convenience, some consumers are adding on online grocery orders from Amazon Prime and competitors like Uber Eats and Instacart.
Zoom in: The trend of shopping at multiple stores has been growing alongside the use of store loyalty programs.
- "I haven't [one-stop] shopped in years," Claire McDonough of Alexandria, Virginia, told Axios.
- McDonough buys staples online at Giant, using coupons and deals for gas discounts, then goes to pick it all up. For everything else, it's Whole Foods — the money she saves via Giant's discounts goes toward organic dairy, meat, and produce, she says.
- "We all have a favorite store, but being flexible about where you shop can actually save money," Parker Folkert, a Northwestern Mutual financial adviser, told Axios.
By the numbers: The number of consumers' grocery stops has been on the rise since 2019 except for a drop between March 2020 and February 2021, when shoppers went to an average of 15.4 retailers in the 12-month period.
- Grocery shoppers made 8% more trips in 2023 than they did in 2022, according to data AlixPartners shared with Axios.
- Shopping trips have also shrunk in size with shoppers going to stores more frequently, the data shows.
Between the lines: The growth of store brands have been popular with consumers and a win for retailers who have doubling down on budget-friendly store brands to drive sales.
- Target launched a new store brand, "dealworthy" in February focused on everyday items.
- Walmart announced the launch of its biggest new store brand in 20 years in April with the "bettergoods" brand focused on affordability and food trends.
- The expansion of discount grocer Aldi, which sells more than 90% private label products, is expected to "ramp up the competitive pressure in the grocery market," Neil Saunders, GlobalData managing director, told Axios.
The bottom line: Inflation is starting to cool and slowed for the first time this year in April, according to recent data.
- The federal report showed the overall consumer price index increased 3.4% over the last 12 months, compared to 3.5% in March.
- Claire Tassin, a Morning Consult retail & e-commerce analyst, told Axios, that "the game of playing store discount programs against each other will be less rewarding" as inflation moderates.
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