GROCERY PRICE INCREASES AND THEIR IMPACT ON THE U.S.
How can we not mention the recent food crisis? The price increase of raw materials spawned a domino effect on grocery bills and many consumers have decided to put their food budget on a diet.
According to The Why behind the Buy, a study by Acosta Sales and Marketing, the average American now spends 7% less on groceries each month, mainly true for households who have an income of less than $75 000. The study has also shown that 41% of respondents are resorting more to coupons and keeping an eye open for specials. Lastly, 22% will choose to shop for groceries at discount stores.
Also, the study shows that the rise of gas prices has reduced the frequency at which consumers will visit their supermarket. However, the wealthier Americans, who have incomes that are superior to the average, have increased their spending 34%. This can be explained by their loyalty to high-end products that have also raised their prices.