Grocery prices weigh on customer loyalty
As food prices continue to inflate in double digits year over year, customers of all income brackets are considering switching to cheaper alternatives to their usual favorite food retailers.
A national online survey of 3,783 consumers conducted by PYMNTS this month found that nearly half (45%) of consumers say they will also shop at other grocery stores for better prices on the things they want. buy, including nearly 20% of those with incomes above $100,000 a year.
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Seeing this threat to customer loyalty, grocers are working harder to build relationships with their customers. Vivek SankaranCEO of the American grocery giant Albertson Cos.highlighted the company’s affinity-building efforts during a call with analysts Tuesday, July 26 to discuss the company’s first quarter of fiscal 2022 earnings results.
“Everything we do leads to stickiness,” Sankaran said. “When we get a customer, we want to engage them, keep them, get them to spend more with us, and what helps us do that is the digital engagement they have in e-commerce which continues to grow. Once we have them, we are able to customize and store them.