Consumers Looking Beyond Supermarkets for Groceries

February 20, 2014
NACS Online
Seventy-seven percent of Millennials, Gen X and Baby Boomers bought groceries from a non-grocery outlet last year.
​NEW YORK – Increasingly, U.S. consumers are turning to outlets other than grocery stores for their groceries, Forbes reports.
According to a study by King Retail Solutions (KRS) in conjunction with the University of Arizona’s Terry J. Lundgren Center for Retailing, Whole Foods, Trader Joe’s, and Safeway stores are losing food shopping market share to Walmart, Target, dollar stores, pharmacies and convenience stores.
KRS reported that 77% of Millennials, Gen X and Baby Boomers bought groceries from a non-grocery outlet last year. Additionally, 96% of those surveyed said they’ll purchase food from places other than grocery stores this year.
Target and Walmart top KRS’ list of the 20 most popular non-traditional grocers, followed by Walgreens, CVS, Costco, Dollar General, farmers markets and food stalls, Dollar Tree, 7-Eleven and Kmart.
“It can’t all be about one-stop-shop, but if it’s a retailer they appreciate, they are going to shop there,” said KRS’ Andrew Swedenborg of these findings. “If new, non-traditional items are available for sale, they are going to buy those items.”
Notably, the wealthier shoppers are more likely to purchase groceries from Target, Walmart or another non-grocer, KRS said.
Shoppers pointed to price and convenience as the top motivating factors in selecting a store for their groceries. Quality ranked third.