Pandemic's Latest Effect on Consumer Behavior

New insights from Kroger data analytics subsidiary 84.51° and its “February Consumer Digest” delve into how consumers are fighting inflation and the latest shopper trends and behavioral analytics.

The consumer price index for January, which measures the costs of dozens of everyday consumer goods, rose 7.5% compared with a year ago, according to the U.S. Labor Department.

A key finding from the 84.51° report, which is based on real-time insights surveys from February 2022, is that COVID-19 concern is trending downward among shoppers as cases began to decline. Only 36% of respondents claimed they are extremely concerned about COVID-19 this month (similar to back-to-school season and summer 2020), while 68% of shoppers said they are very concerned with inflation. Of those shoppers:

• 56% have been looking for sales and promotions more often,
• 40% have switched to a lower cost brand, and
• 34% are cooking from home and 30% are going out less.

Consumers said if they need to cut back, 57% would cut out adult beverages, 56% would cut snacks and 46% beauty. However, while 56% said they have been cutting back on non-essentials like snacks and candy, the actual shopper behavior shows that units sold are flat and shoppers are still snacking. Overall, however, only 22% of consumers responded that they feel comfortable with their current financial state.

In terms of meal planning, consumers are looking for “speed and simplicity.” Many consumers said they search for cooking inspiration. Thirty five percent said they use google use, 33% use store ads, 21% use online sites like Pinterest and 14% use apps on their phone.

There’s no question the pandemic has catalyzed tons of new consumer behaviors. Here’s what consumers said they will continue:

• 58% will cook/eat at home more,
• 54% will stay at home more,
• 45% will focus on self-care,
• 36% will continue to wear masks on planes,
• 20% will continue to work remotely, and
• 20% will order groceries online.

Looking ahead, for 35% of consumers, spring cleaning will kick off in March and they are purchasing products to jump start the purge. Close to 70% of shoppers said they plan to spring clean in the next four months. Top items include all-purpose cleaners (75%), bathroom cleaners (69%), toilet cleaners (67%) and glass cleaner (64%).