Price and value are the top reasons shoppers are either switching from their previously preferred grocery store or splitting their business between multiple grocery stores, according to a Market Force Information 2023 shopper survey.
The study conducted by the Peachtree Corners, Ga.-based market researcher found that this year's top grocery brands were Trader Joe's, H-E-B and Woodman's Markets.
And Walmart won in wallet share, with Kroger and Aldi following, although there was a considerable gap of two-times over Kroger. This margin has widened since 2017, when Walmart's lead was at 1.75 times Kroger, demonstrating Walmart's continued market penetration in the last five years.
Study participants who are H-E-B shoppers said they spent 78% of their grocery dollars with the brand, making H-E-B a leader in capturing wallet share from its local competitors. Market Force’s value winner was Aldi, with a top box score of 90%.
Of the key decision criteria that drive consumers to choose a grocery store, convenience ranks No. 1, selected by 62% of respondents. Value was the second-most-chosen factor at 53%, and good sales and promotions was selected 44% of the time. These results show how important economic factors are to consumers as they consider where they shop.
Impact of in-store execution
Grocery customers are not solely influenced by price.
Given relatively similar pricing, shopper satisfaction and behavior (in terms of the retailers they shop at regularly) is really dictated by the retailer’s ability to facilitate a problem-free experience, the study showed. This experience is generally characterized by the availability of a large assortment of products, having a clean store and enabling a fast checkout.
“Even with that relatively simple formula, there are some real winners and losers well positioned to win share of wallet, drive customer loyalty and build trust over time,” according to Market Force. These standout brands include Trader Joe's, Smiths and Wegmans. Large, established brands that consumers trust include H-E-B, Publix and, again, Trader Joe's.
The waning of the COVID-19 pandemic has corresponded with a slowing in the growth of customers opting for grocery delivery — down from a high of 27% during the height of COVID, to about 10% today.
But, technology is still on the rise, with more customers now using an app to order groceries for pickup at curbside or a store-designated pickup area. This fulfillment method could rise from 16% to 23% of grocery customers, according to Market Force.
More than two-thirds, or 68%, of these shoppers are very satisfied with this alternate method of shopping for groceries. As technology continues to be applied to the grocery shopping experience, Market Force forecasts continued growth in these newer shopping and fulfillment channels.
Top performing grocery brands
Trader Joe’s won the top score of 84% on the customer loyalty index, a blended score combining “satisfaction with the most recent visit” with “likelihood to recommend.” H-E-B was second at 83%, and Woodman's Market was third at 81%.
Market Force surveyors also asked shoppers if they perceive their grocer of choice to be best in class. For this accolade, two brands stood out above the rest: Wegmans with 76% of respondents agreeing, and H-E-B was a close second with 73% agreeing.
A copy of this study can be downloaded here.
The 46 grocer retail brands featured in the study include: Acme Markets, Albertson's, Aldi, Amazon Fresh, BJ's, Costco, Dillons, Food Lion, Fred Meyer, Fry's, Giant Eagle, Giant Food Stores, Grocery Outlet, H-E-B, Hannaford Supermarkets, Harris Teeter, Hy-Vee, Food Stores, Ingles Markets, Jewel Osco, King Soopers, Kroger, Label, Lidl, Market Basket, Meijer, Price Chopper, Publix Super Markets, Ralph's, Safeway, Sam's Club, Schnuck Markets, Shaw's, ShopRite, Smith's, Sprouts Farmers Markets, Stop & Shop, Target, Trader Joe's Market, Vons, Walmart, Wegmans, Weis Markets, Whole Foods Market, WinCo Foods, Winn-Dixie Stores and Woodman's Markets.