A market for an expanded grocery selection at dollar stores potentially exists, especially with consumers who live less than 10 minutes away, according to data reported in the April Consumer Food Insights report.
The survey-based report out of Purdue University’s Center for Food Demand Analysis and Sustainability assesses food spending, consumer satisfaction and values, support of agricultural and food policies, and trust in information sources. Purdue experts conducted and evaluated the survey, which included 1,200 consumers across the U.S.
April’s report assesses differences in food behaviors by food security status rather than demographics. The report includes the first questions center researchers have asked about consumer behavior and food selection at dollar stores.
“More than half of Americans have recently shopped at a dollar store,” said Jayson Lusk, the head and Distinguished Professor of Agricultural Economics at Purdue, who leads the center. “When it comes to food, many of these purchases are snack items. If consumers do pick up more food at a dollar store, it makes sense that people typically buy canned or frozen foods since these are the easiest options for dollar stores to stock.”
While only a small percentage of consumers shop for groceries at dollar stores, there could be a market for an expanded food selection since 50% of those surveyed reported that a full-service grocery would be a draw.
“Plus, nearly 60% of consumers say that they live within 10 minutes of a dollar store, which has potential for capitalizing on access issues,” Lusk said.
In the food spending category, the slow easing of food inflation continues. Data from this summer’s reports will provide a helpful picture of how consumers are doing.
“If people go out and spend more at bars and restaurants, as one would expect, then we could say that consumers are feeling fairly confident,” Lusk said. “But if food-away-from-home spending does not increase in our data, especially as food-away-from-home inflation continues to pick up according to official measures, then we might have some questions.”
Lacking pre-January 2022 survey data, the Purdue researchers are unable to compare current responses to times of low inflation. Even so, Lusk said, “It seems that consumers have some degree of elevated inflation baked into their expectations with their 4.3% estimation of future inflation.”
Source: purdue.edu
Photo Credit: GettyImages-FatCamera
Categories: Indiana, Business, Sustainable Agriculture