The effect of grocery price increases since the pandemic have continued to ripple across the industry – impacting consumer shopping habits and forcing retailers and suppliers to re-strategize how they get products moving off shelves, and in turn, bigger basket sizes through checkout. According to Jeff Wojtkowiak, president of In The Loop Consulting and a former Kroger executive speaking during a recent Jefferies webinar, once those prices are bumped up, they will remain elevated. This will make promotional cycles and strategic merchandising a bigger priority. Snack Sizes Matter: Despite costs going up, consumers are still snacking and overall, Wojtkowiak believes the category has fared better than others – like confections where purchasers may be more discretionary and price sensitive. The category has also benefited from clever packaging and promotions including positioning snacks in single-serve, meal-replacement-like formats, he said: “it’s fundamentally becoming a larger part of the way that people are eating and therefore there’s higher demand.” Retail Relations: Consumers have increasingly turned to discount, club and value-positioned retailers (think: Aldi, Costco and Walmart) when it comes time to grocery shop. When they do shop a traditional grocer, many are reaching for more private label products than ever before. There’s also an interesting dynamic among this next generation of private label and club shoppers. Historically, this demographic was strictly a value-based shopper, Wojtkowiak said, but now “mainstream” and even “upscale” consumers are beginning to shop for better deals in grocery. That all spells trouble for “middle of the road” retailers like Kroger and Albertsons, who are “not necessarily the best in price and are not necessarily the best in service,” said Wojtkowiak. “I think they start to get squeezed out, they lose their identity and anytime I’ve seen retailers that have done that in the past, those are the ones that generally are losing share and begin that downward spiral.” Read the full story on Nosh to learn why Wojtkowiak believes private label is a “self fulfilling prophecy” and his thoughts on why Amazon’s Whole Foods grocery business is just “messed up.” | 
