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Even as grocery price inflation eases, consumers continue buying store brands. When asked what鈥檚 driving the trend, roughly two-thirds of shoppers mentioned factors like quality, taste, and store brands鈥� ability to meet specific dietary needs, per an FMI consumer survey. Private labels differentiate retailers鈥� offerings.

Consumers have also been trading down to lower-cost groceries, including private label products, while a number of brands and retailers have announced price cuts. Apparel, accessories, and footwear is the only category that will outperform both overall retail and ecommerce growth every year through 2028.

Less than 10% of shoppers don鈥檛 expect to make any changes to their shopping habits due to tariffs, according to February 2025 data from Numerator.

The likelihood that those policies will cause prices to rise and reignite inflation is pushing many consumers to pull forward big-ticket purchases and, in some cases, stockpile items like cosmetics, home goods, and nonperishable groceries. It鈥檚 also affecting their outlook on future spending.

Temu could try appealing to inflation-weary consumers by introducing the gamified, group-buying grocery shopping concept that made sister app Pinduoduo enormously popular in China.

Food costs are projected to rise 1.6% following the recent measures, and overall by 2.8%, reflecting a full year鈥檚 worth of grocery inflation. Produce, in particular, is expected to see increases between 2.2% and 4.0%, underscoring the widespread impact on daily expenses. The 鈥淟iberation Day鈥� tariffs are sparking rapid, uneven shifts in global supply chains.

Walmart鈥檚 clear value proposition helped it attract consumers across the income spectrum鈥攅specially in the grocery category. And its Walmart+ membership service helped it retain those customers by quickly delivering online orders at no additional cost. The combination of Walmart鈥檚 booming grocery and ecommerce sales also fueled its highly lucrative advertising business.

Digital offers, preferred by 62% of US grocery shoppers, are the top method for saving on groceries. However, in-store sales follow closely at 55%, per June 2024 data from Ibotta.

This is the first installment of our 鈥淩etail and Ecommerce Sales Benchmarks鈥� series, which helps retailers calibrate their sales mix against the market.

This is the first installment of our 鈥淩etail and Ecommerce Sales Benchmarks鈥� series, which helps retailers calibrate their sales mix against the market.

This is the first installment of our 鈥淩etail and Ecommerce Sales Benchmarks鈥� series, which helps retailers calibrate their sales mix against the market.

This is the first installment of our 鈥淩etail and Ecommerce Sales Benchmarks鈥� series, which helps retailers calibrate their sales mix against the market.

This is the first installment of our 鈥淩etail and Ecommerce Sales Benchmarks鈥� series, which helps retailers calibrate their sales mix against the market.

This is the first installment of our 鈥淩etail and Ecommerce Sales Benchmarks鈥� series, which helps retailers calibrate their sales mix against the market.

This is the first installment of our 鈥淩etail and Ecommerce Sales Benchmarks鈥� series, which helps retailers calibrate their sales mix against the market.