August 31, 2026
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How Can Grocers Lock In Loyalty As Nearly Half of Americans Show a Lack of Preference?
A new survey result issued by Algolia suggests that more Americans define themselves as “stressed” about the current price of groceries (75% versus 73% in 2025), and that value-seeking dominates shopper behavior in the grocery segment.
“That value-seeking mindset extends to where and how consumers shop. Forty-four percent (44%) don’t necessarily have a go-to grocery store,” wrote Algolia exec Piyush Patel.
“Instead: Twenty-eight percent (28%) compare prices across multiple retailers to maximize value. Sixteen percent (16%) compare prices across multiple retailers before picking one grocer with the best prices overall. Twenty-eight percent (28%) have a preferred grocer but still compare prices across brands and products before deciding what to buy. Just 6% say they’ll stick with their favorite brands even when they cost more,” he added.
Other notable pieces of survey data pulled from the report:
- Nearly half (42%) of U.S. grocery shoppers have opted for private label replacements in order to save their budgets, up from 40% in 2025.
- Nearly the same percentage (41%) of those polled indicated they’d reduced their spend on premium cuts of meat or seafood, and 39% said the same regarding non-essential grocery items such as treats or snacks.
- Health is also of importance, with 29% saying they’d slashed their booze spending for health reasons, and 28% saying they’d cut back on “unnecessary” beverage purchases altogether.
America's next grocery shock is brewing https://t.co/HLwDIeimDl
— Axios (@axios) August 30, 2026
Households With Children Are a Key Demographic For Grocers To Consider
According to Patel, parents are a key demographic that U.S. grocers should be considering in terms of their spending power.
“Married-couple families with children spend more than $9,000 annually on groceries, 48% more than the U.S. average, and, with over 23 million married-couple families with children in the U.S., collectively represent more than $200 billion in annual grocery spending,” Patel wrote.
“That makes understanding parents’ needs especially important for retailers. Parents often manage larger grocery budgets while juggling busy schedules and competing priorities, putting added pressure on them to control costs and shop efficiently. In Algolia’s survey, parents, defined as respondents with children aged 25 or younger living at home, were more likely than non-parents to seek deals, switch brands, cut back on premium items and report frustrations with the grocery shopping experience,” he added.
Naturally, given Algolia’s role as an AI-driven data platform, the subject of artificial intelligence tools and their interaction in the grocery market was also discussed. Patel underscored that parents are far more likely (71%) to consider using an AI shopping agent than non-parents (53%), based on the survey data — and that nearly half of shoppers (48%) would be more likely to patronize grocers that have successfully implemented AI functionalities.
Further, grocers were perceived — according to survey data — to be lagging behind other retail sectors in terms of modernization. Over half of respondents stated that the information provided on grocers’ apps was unreliable, and 39% said that grocery websites were prone to inaccuracies and irrelevant search results (and the same percentage saying the websites themselves were clunky or outdated). Finally, 43% of those surveyed said “grocers are significantly behind other retail categories in online shopping experience.”
BrainTrust
Nicholas Morine
Recent Discussions
Discussion Questions
Do you believe it is possible for grocers to actually create longstanding loyalty with contemporary shoppers beyond competitive pricing? What’s most important otherwise?
Which grocers are doing the best job of addressing the broader needs of today’s consumer? Conversely, which are being left behind?
Do you believe that the data presented in this survey report is more-or-less accurate? Why or why not? What’s being missed?
Poll
Among mainstream grocers, the reason there’s a lack of loyalty is because there’s a lack of differentiation. A Kroger is basically replaceable by an Albertsons which is replaceable by a Hannaford. Loyalty depends on there being at least one point of differentiation that makes one supermarket better than another. Price is rarely that differentiator as competitive prices are table stakes. The loyalty rates for Wegmans, H-E-B, Aldi and so forth – all players that are strongly differentiated – tell you all you need to know. But, even then, the idea that loyalty rates will return to where they were a decade or so ago is fanciful: grocery trips are too fragmented and consumers have too many digital comparison tools to allow for that.
Yes, of course, it’s possible (tho “lock in” seems a bit presumtious); but it means giving people a reason to chose you beyond mere price compeitiveness...not in place of it (something that’s long been viewed as an “either/or” in the matrix of marketing strategies).
Far too many grocers, of course fail on offering any type of advantage, except perhaps one of proximity.
And some are so bad that even proximity offers no protection!
Well this is where the high gas prices help!!
(It is indeed an ill wind that blows no good…for someone 🙂 )
Whole Foods and Trader Joe’s have clearly differentiated themselves from the competition and enjoy loyal customers as a result. Aldi too. Create an identity, figure out how to present it, and let customers find you.Avoid being “middle of the road.”
Deals, promotions, and low pricing do incent trial (especially now), but actual loyalty comes when a grocer is successfully executing its promise, and is aligned with shoppers primary motivators – whether quality, variety/selection, service, low price, convenience, ad/deals. Every shopper places only one of these motivators at the top, even though all are nice to have. The data presented by Algolia around shopper apathy isn’t wrong if every store in a market is similar or middling. For example, in the case of chains like Safeway/Kroger, deals and hot prices get customers in the door, but after that convenience and selection are its only redeeming benefits. But independents like Central Market, Dorothy Lane, Bristol Farms create greater loyalty in trade areas where shoppers put quality & service above other motivators.
Loyalty is more than points and perks. It’s about emotional connection.
Points and perks drive repeat business, but there needs to be more if you want true loyalty. More than customers feeling welcome, are they recognized? Is there something the grocers do to engage customers (and their kids). Are the attitudes of the employees enthusiastic and helpful. If you want to study what drives that emotional connection, look at Trader Joe’s. Even without a formal loyalty program, they have incredible loyalty. How? It’s the way customers feel about Trader Joe’s customer experience.
This article concerns me because it is lost in the weeds. The details within a store are critical to loyalty—but they must come together to create a whole experience for the shopper that delivers on what they need, want, and expect. Thus, a store’s locality to the customer home, how items are displayed, offerings of innovative new things, the right mix of brands with private label goods, and far more are the fundamental basis of loyalty. When a store delivers not only specific goods, but does this in ways helping shoppers have successful experiences then they will be loyal.
Beyond pricing, grocery shoppers seek assortment variety, freshness, availability and tasty private labels, which deepen loyalty.
E-grocery has room for improvement, as data errors erode the customer experience on grocers’ websites and mobile apps. Data standards aren’t sexy but grocers who nail data integrity will look downright seductive and capture digital natives’ loyalty. (And more CPG brands’ ad spend.)
There is no single way to win and retain consumers. It is complicated plethora of points that touch the consumers on the many different things preferences that are critical to the broad set of consumers. For some it is a memorable service model that has attended lanes and baggers, for others it is QUALITY private label brands that they can be loyal to, for others it is a consistent and RELIABLE Fresh experience, (it only takes on or two bad trips to turn the shopper away), and don’t get me started on packing a quality pickup or delivery order. For many in this new working model it is having all of these items and more covered every day not just on the weekends as consumer trip counts continue to go up as many now plan to shop several times a week. Adapt, Adapt, Adapt and measure again and adapt again.
To your point…there is no single way. I live within 1 1/2 blocks from a Whole Foods, Trader Joe’s and traditional (Morton Williams). I shop at all of them, depending on what I’m looking for. Each is unique from the others, and I like it that way. Yes, my location is perfect, and I embrace the choices.
For many consumers, loyalty to a grocery store is about price, but it’s not always about price.
Some BrainTrusters have mentioned Whole Foods, Trader Joe’s, and Aldi as standouts. I’d add Fresh Market to the list.
I’ll take a curated assortment, comfortable ambiance, and a well-merchandised sales floor over a dingy, vanilla grocery store every time. Loyalty also lives in the in-store experience.
The data looks about right to me in part because of the current economy and in part because most grocers have upgraded their stores and service to the point where there is little differentiation beyond convenience. Most shoppers will still spend a few dollars more for a better overall experience. The major trend we are seeing among grocers is not giving more loyalty points, but giving personalized discounts on the next shopping trip. Many of those are funded by the manufacturing brand, but overall, they can represent at least a 5% savings on a $300 shopping cart. That is real money if there are 4 major shopping trips per month. Fortunately for consumers and perhaps unfortunately for the major chains, the grocery shopping experience has been pretty good for 20 years already, so only pricing and location are likely to influence where people shop.
To Perry Kramer’s point…”there is no single way”. I live within 1 1/2 blocks from a Whole Foods, Trader Joe’s, and a traditional (Morton Williams). I shop at all of them, depending on what I’m looking for. Each is unique from the others, and I like it that way. Yes, my location is perfect, and I embrace the choices.
There are also generational differences when it comes to loyalty. We know from many studies we’ve conducted over the years that older shoppers are more loyal to traditional supermarkets while younger shoppers tend to shop a wider variety of formats for food and groceries. Part of that has to do with perceived value offered by the format for their stage in life. Gen X shoppers, for example, give the lowest marks to traditional supermarkets for value and they use multiple channels for food shopping as they are trying to shop for aging parents, may still have kids at home, and are trying to navigate a busy lifestyle.
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Among mainstream grocers, the reason there’s a lack of loyalty is because there’s a lack of differentiation. A Kroger is basically replaceable by an Albertsons which is replaceable by a Hannaford. Loyalty depends on there being at least one point of differentiation that makes one supermarket better than another. Price is rarely that differentiator as competitive prices are table stakes. The loyalty rates for Wegmans, H-E-B, Aldi and so forth – all players that are strongly differentiated – tell you all you need to know. But, even then, the idea that loyalty rates will return to where they were a decade or so ago is fanciful: grocery trips are too fragmented and consumers have too many digital comparison tools to allow for that.
Yes, of course, it’s possible (tho “lock in” seems a bit presumtious); but it means giving people a reason to chose you beyond mere price compeitiveness...not in place of it (something that’s long been viewed as an “either/or” in the matrix of marketing strategies).
Far too many grocers, of course fail on offering any type of advantage, except perhaps one of proximity.
And some are so bad that even proximity offers no protection!
Well this is where the high gas prices help!!
(It is indeed an ill wind that blows no good…for someone 🙂 )
Whole Foods and Trader Joe’s have clearly differentiated themselves from the competition and enjoy loyal customers as a result. Aldi too. Create an identity, figure out how to present it, and let customers find you.Avoid being “middle of the road.”
Deals, promotions, and low pricing do incent trial (especially now), but actual loyalty comes when a grocer is successfully executing its promise, and is aligned with shoppers primary motivators – whether quality, variety/selection, service, low price, convenience, ad/deals. Every shopper places only one of these motivators at the top, even though all are nice to have. The data presented by Algolia around shopper apathy isn’t wrong if every store in a market is similar or middling. For example, in the case of chains like Safeway/Kroger, deals and hot prices get customers in the door, but after that convenience and selection are its only redeeming benefits. But independents like Central Market, Dorothy Lane, Bristol Farms create greater loyalty in trade areas where shoppers put quality & service above other motivators.
Loyalty is more than points and perks. It’s about emotional connection.
Points and perks drive repeat business, but there needs to be more if you want true loyalty. More than customers feeling welcome, are they recognized? Is there something the grocers do to engage customers (and their kids). Are the attitudes of the employees enthusiastic and helpful. If you want to study what drives that emotional connection, look at Trader Joe’s. Even without a formal loyalty program, they have incredible loyalty. How? It’s the way customers feel about Trader Joe’s customer experience.
This article concerns me because it is lost in the weeds. The details within a store are critical to loyalty—but they must come together to create a whole experience for the shopper that delivers on what they need, want, and expect. Thus, a store’s locality to the customer home, how items are displayed, offerings of innovative new things, the right mix of brands with private label goods, and far more are the fundamental basis of loyalty. When a store delivers not only specific goods, but does this in ways helping shoppers have successful experiences then they will be loyal.
Beyond pricing, grocery shoppers seek assortment variety, freshness, availability and tasty private labels, which deepen loyalty.
E-grocery has room for improvement, as data errors erode the customer experience on grocers’ websites and mobile apps. Data standards aren’t sexy but grocers who nail data integrity will look downright seductive and capture digital natives’ loyalty. (And more CPG brands’ ad spend.)
There is no single way to win and retain consumers. It is complicated plethora of points that touch the consumers on the many different things preferences that are critical to the broad set of consumers. For some it is a memorable service model that has attended lanes and baggers, for others it is QUALITY private label brands that they can be loyal to, for others it is a consistent and RELIABLE Fresh experience, (it only takes on or two bad trips to turn the shopper away), and don’t get me started on packing a quality pickup or delivery order. For many in this new working model it is having all of these items and more covered every day not just on the weekends as consumer trip counts continue to go up as many now plan to shop several times a week. Adapt, Adapt, Adapt and measure again and adapt again.
To your point…there is no single way. I live within 1 1/2 blocks from a Whole Foods, Trader Joe’s and traditional (Morton Williams). I shop at all of them, depending on what I’m looking for. Each is unique from the others, and I like it that way. Yes, my location is perfect, and I embrace the choices.
For many consumers, loyalty to a grocery store is about price, but it’s not always about price.
Some BrainTrusters have mentioned Whole Foods, Trader Joe’s, and Aldi as standouts. I’d add Fresh Market to the list.
I’ll take a curated assortment, comfortable ambiance, and a well-merchandised sales floor over a dingy, vanilla grocery store every time. Loyalty also lives in the in-store experience.
The data looks about right to me in part because of the current economy and in part because most grocers have upgraded their stores and service to the point where there is little differentiation beyond convenience. Most shoppers will still spend a few dollars more for a better overall experience. The major trend we are seeing among grocers is not giving more loyalty points, but giving personalized discounts on the next shopping trip. Many of those are funded by the manufacturing brand, but overall, they can represent at least a 5% savings on a $300 shopping cart. That is real money if there are 4 major shopping trips per month. Fortunately for consumers and perhaps unfortunately for the major chains, the grocery shopping experience has been pretty good for 20 years already, so only pricing and location are likely to influence where people shop.
To Perry Kramer’s point…”there is no single way”. I live within 1 1/2 blocks from a Whole Foods, Trader Joe’s, and a traditional (Morton Williams). I shop at all of them, depending on what I’m looking for. Each is unique from the others, and I like it that way. Yes, my location is perfect, and I embrace the choices.
There are also generational differences when it comes to loyalty. We know from many studies we’ve conducted over the years that older shoppers are more loyal to traditional supermarkets while younger shoppers tend to shop a wider variety of formats for food and groceries. Part of that has to do with perceived value offered by the format for their stage in life. Gen X shoppers, for example, give the lowest marks to traditional supermarkets for value and they use multiple channels for food shopping as they are trying to shop for aging parents, may still have kids at home, and are trying to navigate a busy lifestyle.