Americans almost only buy bargain foods

By: Trademagazin Date: 2024. 07. 09. 10:18

For American consumers, the economic situation is increasingly challenging, especially in the food market. Despite high inflation, which has decreased in recent months, the deterioration of purchasing power can still be felt. As a result of the price increase, many people are forced to reduce their spending and buy less food than before.

Rising food prices and falling purchasing power

Although food prices have officially increased by just 1% over the past 12 months, over the past five years the rate of increase has reached 24%. This puts a significant burden on consumers, especially those whose incomes have not kept pace with rising prices. As a result, Americans are buying less and more carefully.

Retailers’ answer: Promotions and discounts

In response to perceived shopping trends, manufacturers and retailers offer increasingly attractive promotions and price reductions. Big chains like Walmart, Target, and Aldi are trying to attract customers with significant price cuts. According to a survey by the Pew Research Center, 62% of American adults consider inflation to be a “very big problem” in the country, underscoring the seriousness of the economic situation.

The phenomenon of shrinkflation

Another cause of consumer dissatisfaction is deflation, where the quantity of products decreases while goods stay the same or increase. An example is Snickers chocolate, the size of which has decreased, but the price has not changed. According to Jean-Pierre Dubé, marketing professor at the University of Chicago, consumers are increasingly frustrated by deceptive pricing.

Future prospects

Changes in consumer behavior and retail strategies indicate that the American economy is undergoing profound changes. Retailers and manufacturers are adapting to consumer demand while trying to minimize lost revenue and maintain market share. Inflation remains a central issue affecting the lives of all Americans.