Multi-stop grocery shopping is the norm now

Grocery shopping is turning into a hunt for the best prices and deals for most American families as they grapple with higher costs, which have shot up 21% over the past three years.

The result: Customers are visiting more stores in not-so-expensive neighborhoods as groceries now account for the highest percentage of household budgets in three decades, according to the Wall Street Journal.

Industry experts say multi-stop shopping to fill up the refrigerator has become the norm. Shoppers are driving to affordable ZIP Codes, participating in loyalty programs, and looking for grocery coupons to save money.

On average, a consumer bought food items at 20.7 different stores between March 2023 and February 2024, per data firm Numerator.

Supermarkets are adapting to the shift by focusing on differentiation, offering superior products and competitive pricing in specific categories. They also emphasize private label or store brands, which are typically cheaper than national brands.

Discount grocers boom
The desire to save money through various strategies is benefiting discount stores and value grocers the most.

Between 2019 and 2023, Aldi, Lidl, Dollar General and Dollar Tree collectively expanded their store footprint by almost 17%.

Foot traffic at Aldi rose 26% in March compared to last year. The rate is faster than at Trader Joe’s and grocery giant Kroger, per Placer.ai.

The German chain’s efficient practices, like using custom-made crates that stack directly from pallets to shelves, reliance on private-label products (which is ~90% of their inventory), and direct negotiation with suppliers, allow it to give higher volumes at lower prices.