General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAbout consumers switching their buying
I would note the following from a grocery store visit today. In my area there are some run of the mill chains like Kroger and then there are some regional chains. Some of those are a higher tier of quality as far as meat, produce, bakery etc. One such "higher level" store is one that I visited today.
The store is located in a suburb that is more or less "upscale" with homes easily averaging $300,000+ and dominated by white collar types. The visit was at 6:00 p.m. which is normally a very busy time for them and usually you have to stand and have a considerable wait at their excellent deli. The checkouts are usually quite busy at this time of day with people coming home from work and buying things for evening meals etc. The "ready made" section in the deli is excellent and trends "ready gourmet" or just below. The meat and seafood section is well staffed and has things like almond crusted flounder, high end beef, various exotic types of chicken breast etc. all looking freshly made and ready to take home and pop in the oven.
The produce section looks like it came from an issue of BH&G and everything in the grocery aisles is perfectly faced. A very clean operation and they price higher by about 20%+ on identical items compared to the lower tier stores. But that price difference has never deterred their shoppers before and I have visited during ups and downs in the economy and they have always maintained their shoppers. But what I saw today was a stark contrast.
I was only one of 3 people buying in the deli. I was the only one at the meat case and over in the huge produce section I was again one of 3 shoppers. When I checked out there were only 2 lanes open and one had 2 people and one had none having just finished with a man who had a small order. In total there may have been 10 shoppers in the whole store. It was eerily quiet for 6:00 p.m.
I believe this may very well tie into a trend of higher income shoppers moving to lower tier or "discount" stores not only for groceries but for other items as well. There was a report today from Dollar General that they are seeing a noticeable increase in customers from a higher economic level than before. DG had an earnings call on 06/03/25:
"In a Tuesday earnings call, CEO Todd Vasos said the company saw net sales increase by 5.3 percent to $10.4 billion."
The report also noted:
"Vasos said that according to a survey, his stores are seeing more middle and high-income earners spend their money at his locations.
"We believe these behaviors suggest that higher income customers are looking to maximize value while continuing to shop for items they want and need," said Vasos on the earnings call."
So here we are folks with Crumb The 1st on the attack against tourism, visitors as workers, visitors as students and announcing that they will now change how much data is collected for economic reporting from the US government. In other words "cooking the books". Seems to me somebody got felony convictions over crooked accounting. In any event here we are with the last report from the Fed not being encouraging either. So in a few short months we have gone from best economy in over 60 years to picking fights with every country in the world, grabbing people off the streets to the point that people are wary of visiting this country and attacking institutions of higher education. Higher education returns a very high net positive for our economy.
So many people, middle income and higher, are obviously changing their buying and what happens to various retailers remains to be seen. But price certainly appears to be making itself a higher priority in shopping decisions.
msongs
(73,079 posts)usonian
(23,535 posts)The median home price in CA is over $800K
The median in parts of the central valley is $420K.
My situation is unusual, so here are some outlier data points.
I live in the boondocks and shop once a week, so I can't comment on trends. A lot of non-food purchases, other than stuff I need for home, auto and property upkeep come from thrift stores. Clothes, especially. Shoes about doubled in price, but they are way below retail (which I don't want to even think about).
But I am single and retired, so I am not in the fat part of the bell curve. Still, most of my nice cameras are used, as is my Clavinova piano. Those are my main hobbies, and keep me busy (other than that large property. This is clean up time for wildfire season, ouch)
I can easily see how a family would have a tough time. When my daughter was growing up, a nearby neighbor with twin daughters would regularly have a yard sale with the nicest clothes. When she went to college, she chose a state university and even was a resident assistant. (But those were her choices.)
Follow The Way Forward and Activist Headquarters for some positive ideas and actions.
multigraincracker
(36,974 posts)Old, retired with lots of time on my hands, so I shop for deals and sales. Shop at least 4 or 5 different stores. Each has its own best prices on certain items I consume. I buy more and stock up when its on sale. Ive made it a hobby.
Just bought a manufactured home in a nice community. Has 1,340 sq/ft. My current home is only 950 but on 2 acres that Im tired of keeping up with. Will have cash to enjoy some travel with when I sell the house. Will be way closer to grand and great grand kids. Thats a big deal for us now.
ribrepin
(1,883 posts)We were there to celebrate a birthday. We don't eat out much. There were 5 tables occupied and maybe 20 people in the restaurant. There are 40 to 50 tables in that restaurant. I remarked to my husband that the recession is here. Restaurant used to be packed that time of night.
DFW
(59,730 posts)Even here, there is plenty.
My wife was on a short vacation with a girlfriend on the German-Swiss border. It was one of those areas where you could just walk over a small bridge and be in Switzerland. Since the Swiss Franc is now worth far more than a Euro, she said that food stores on the German side were full (many Swiss shoppers), where the ones on the Swiss side were nearly empty.
We vary our shopping a lot. There is the farmers market in the town square three times a week, plus the Aldi chain, cheap, but sometimes good fresh stuff due to rapid turnover. The farmers market is usually expensive, but always fresh. It has been there for the last 800 years or so, and its a tradition that is likely to continue. There is also the sort of but not really upscale Edeka supermarket, and the more midscale ReWe in town.
I suspect something similar in the States. When I go with my brother food shopping in the States (Virginia), he mixes up trips to Costco, Aldi, Giant and Safeway, and he researches prices beforehand. Hes now retired and has the time to do that. My daughter in Manhattan says food prices are through the roof. Though between her and her husband, they pull in a decent income, taxes (Federal, NY State and NYC) take about half of it, and they have started watching their food budget.
The big test comes next month, when we head for the USA for five months. Well mostly be on the outer tip of Cape Cod, so we expect outrageous food prices. Before we head out, though, we will spend the first night in Boston, and visit the open air market in the North End. We first went there two years ago, and were blown away. Huge eggplants $1. Four lemons $1. A pound of almost any fruit or vegetable, $1 or less ($2 for high end cherries). Fresh corn on the cob, four for $1. We spent something like $26 and had so much fresh produce, we could barely carry it back to the hotel. We dont understand how these people can sell at those prices and cover their costs, but they must, since they are always there.
On the Outer Cape, prices are, as is to be expected, many multiples of the prices in Boston. Fish is high, but always fresh. Due to the warming oceans, the lobsters are moving north, and the local catch is continually diminishing. Prices of $70 a pound for lobster meat are no longer shocking, so we dont indulge in that very often. $35 for a lobster roll, gimme a break! The Stop & Shop in Provincetown is really the only game around. There are small food shops in Truro and Wellfleet, but their prices are so high, youd think they bought their stock at Stop & Shop and marked it all up 30% for their captive audiences. They probably make 90% of their operating profit between June and September, so they most likely have to do that to survive. Were used to it, expect it, and take it into account. First time visitors probably gape in shock.
Lots of people seem to pay by credit card, too, so the stores have build in a 3% or 4% loss for every purchase paid by card. We pay cash where we can, but with lots of family and friends coming to stay with us, food budget cash disappears like water through a sieve at those prices. Including snacks in town during the day, food can eat up between $500 and $700 a week. Most people dont stay five weeks, of course, but I still bust my ass for work the rest of the year, and at age 73, I claim the right. This August marks exactly 50 years on the job for me. It aint gonna be 60.
hatrack
(64,247 posts). . . we're in far more trouble collectively than the ShinyHappy broadcasters and influencers will ever let on (let alone the Lying Orange Asshole and his entourage).
Here are some link titles from one page of searches for "grocery loans":
"5 Buy Now Pay Later Services You Can Use To Buy Groceries"
"US Shoppers Turn To Buy Now, Pay Later As High Prices Bite"
"Feeding Debt: Why Grocery Loans Are Putting Northeast Florida Families In The Red"
"Consumers Are Financing Their Groceries: What Does That Say About The Economy?"
"Number Of Americans Using Loans To Buy Groceries Soars"
"More Americans Are Financing Groceries With Buy Now Pay Later Loans - And More Are Paying Those Bills Late"
moniss
(8,704 posts)impact further and further up the income scale.