Inflation and the anticipated impact of tariffs are changing shopper behavior across channels. According to the latest findings from the Advantage 2025 Shopper Study, over 73% of the 8,200 respondents changed their buying habits and purchased less expensive options over the past year. As shoppers prioritize affordability over familiarity or innovation, retailers can expect more switching at-shelf than ever before.
“Shoppers recognize that higher prices are likely to be the new normal and about half are already making changes to stretch their budgets further,” Nico Cattaneo, SVP of Analytics & Insights for Advantage Solutions explained. “At the same time, 7 out of 10 respondents said they’re cooking more meals at home out of necessity. Targeted sales are still an important tool, but shoppers are also looking for convenience, variety and creative ideas.”
Understanding the Shopper Study
Price hunter, quality seeker, conscientious consumer, cares about the classics. Categorizing and understanding different personas is the first step in unlocking what these shoppers value as well as what they consider to be non-negotiable. While many are motivated by price, a plurality of shoppers may prioritize a unique assortment, in-store amenities, the availability of the latest trends, or premium ingredients that justify a premium price.
Personas, however, are not monolithic. At a demographic level, several factors—income, household size, work location, age, gender—create a more nuanced breakdown of the individuals that constitute these groups. Understanding where these groups are trending has implications from in-store sampling and retail media activations to product development and line extensions.
Channel Decision Making
From mass, club and discount to grocery and specialty, shoppers have many options when it comes to where they shop. At a time when the retail industry is experiencing changes in shopper behavior, some channels are showing more signs of stability than others. Similar to personas, many shoppers in specific channels are hunting for value, shifting to more affordable products, and prioritizing inexpensive recipes. Simultaneously, other channels are seeing shoppers stay but focusing on more premium options where they perceive higher value.
“If a preferred product isn’t available, are your shoppers more likely to walk and wait or switch?” Cattaneo asked. “It depends on the channel, the product and why your shopper is coming to that retail location in the first place. At a time when people are more likely to switch stores or go to multiple locations to fulfill their needs, understanding where your store or brand exists in the bigger ecosystem is crucial to tailoring your offerings.”
Shopper Sentiment
With 6 in 10 surveyed shoppers reporting that they’re feeling financial pressure, it’s not a surprise the overall retailer Net Promoter Score is down three points from late 2023 levels. Shoppers are quicker to place blame for rising prices on retailers than on brands because they interact directly with the store. This points to the need for greater urgency for stores to be more proactive and transparent in their communications.
Explore six distinct personas, break down trend channel by channel and gain new insights into purchasing behavior by downloading the full State of the Shopper report.
This is the first of five installments of the Advantage 2025 Shopper Study. What Matters to Grocery Shoppers will be released in July.
