May 25, 2006

Fuel prices affecting buyers’ grocery habits

RICHMOND—Rising gasoline prices continue to affect just about everything consumers do. The spike in prices is even affecting where people shop for food and is encouraging a more conservative approach to weekly grocery shopping, according to the new Food Marketing Institute report called U.S. Grocery Shopper Trends, 2006.

The study also shows that consumers are looking for convenient mealtime solutions, a fast and easy-to-shop store environment, and value. And they have different behaviors when it comes to their primary and secondary shopping destinations.

“We are a society that revolves around convenience and at the same time one of the most mobile in the world,” said Spencer Neale, a commodities expert with the Virginia Farm Bureau Federation. “Even though we spend less on food purchases than any country in the world, our fuel prices have reached a point where many people are asking themselves how they can cut down on the number of trips in their car and how they can squeeze more out of their income. Fewer trips to the store and less eating out are two easy ways to accomplish that.”

Forty-five percent of survey respondents claim that high energy prices have had a direct influence on purchasing habits. Consumers are buying fewer luxury items, cooking more at home and eating out less. They also are making shopping lists (46 percent), checking newspaper circulars for store specials (36 percent), redeeming coupons (28 percent), and buying store-brand or lower-priced items (17 percent).

Despite shoppers’ conservative financial habits, many are more likely to shop at conventional supermarkets than any other grocery store format. Ninety percent have shopped at a supermarket in the past 30 days, followed by “super centers” (38 percent) and warehouse clubs (23 percent).

Contact Neale at 804-290-1153 or Sherri McKinney, VFBF video producer, at 804-290-1148.