As inflation, high prices and economic uncertainty continue to weigh on consumers, it’s likely no surprise that shoppers are increasingly exploring different brands, retailers and shopping modalities (see the recent private label tsunami). But that doesn’t mean brand loyalty is dead; rather, there has been a shift in what it means to shoppers.
According to a new report from Kroger’s retail data science arm 84.51 Consumer Digest, value and trust currently rank as the top drivers of brand loyalty. In fact, 84% of those surveyed said “good value for the money” was the most important factor when deciding which brand of grocery or household items to purchase. Brand loyalty – which shoppers tend to associate with purchase consistency – looks different in each aisle of the grocery store. Consumers are least willing to compromise when it comes to shopping for children (21%) and pet food (25%). Conversely, fresh bakery (59%) and produce (60%) shoppers are more open to trying alternate brands. However, in some cases, there is a disconnect between what consumers say and what they do. Although shoppers claim to be less brand loyal and more willing to switch across the broader shelf-stable product landscape, they only purchase an average of 1.5% of brands available to them. In terms of retailer loyalty, fresh categories like produce and deli meat are most likely to drive preference. Specifically, only 22% and 25% of shoppers say they don’t have a preferred retailer for produce and meat/fish, respectively. Price and promotion, convenient location and rewards programs are also important factors for consumers choosing a grocery store. Shoppers aged between 35 and 44 are more likely (80%) to have a preferred retailer conveniently located near work or home than those aged between 18 and 34 years old (66%). They are also more likely (72%) to be loyal to a retailer that offers frequent sales. When asked what motivates them to consistently shop at the same retailer, surveyed consumers said, “Price and quality along with convenience are key” and “[...] both close by and offer what I need the most.” How are shoppers engaging with coupons and discounts? According to the study, consumers are becoming more comfortable with technology, with 30% of shoppers exclusively using digital coupons. And digital coupons are certainly on the rise: Earlier this month, grocery tech company Instacart joined forces with mobile rewards and payment platform Ibotta to give its customers access to Ibotta’s catalog of virtual coupons. Ultimately, to win over consumers, brands must learn to adapt to the ever-evolving shopper definition of “loyalty,” and, currently, that means addressing heightened concerns over high prices. Go Deeper: Surviving the Store Brand Tsunami | 
![🛒 How Inflation Is [Negatively] Impacting Consumer Loyalty](https://dg6qn11ynnp6a.cloudfront.net/advertising/685982310.nosh.generic.grocery.opengraph.alt.jpg)
