Discount retailers take market share
We know that people are more likely to switch products than they are to swap retailers, but 33.4% of consumers have changed where they shop in the last six months. And, of course, it’s the discount grocery stores that benefited most from this shift. The number of Americans shopping at discounters like Aldi, Food 4 Less/Food Co, Grocery Outlet, Price Rite, Save A Lot, and WinCo has increased from 11.9% six months ago to 18.2% today.
Aldi is the retailer to win the most new customers, growing from 5.7% to 9.4%. At the other end of the scale, big box stores Walmart and Target have lost shoppers, although not to a massive degree. Walmart falls from 43.6% to 42%, while Target drops from 4.1% to 2.9%.
Another trend impacting retailers is the post-pandemic return to brick-and-mortar stores, and subsequent decline in online shopping. Our data shows a dramatic change in where people buy their groceries compared to last year. In January 2021, 25.6% of Americans shopped for groceries mostly or only online; today, that figure has dropped to 9.9%.
Meanwhile, the number of people who shop only in-store has almost doubled, rising from 26.4% to 50.6%. This means retailers may need to incentivize shoppers to go online, with special website-only deals and free delivery offers.