To gauge the impact of inflation on grocery prices in the U.S., Catalina has updated its Shopping Basket Index to compare the price of 10 popular CPG categories during the third quarter of 2022 compared to the same period in 2021.
This latest report also offers retailers and marketers strategies for finetuning an omni-channel marketing approach to deliver relevant and valuable incentives to help shoppers make the most of their dollars during challenging economic times.
“Inflation continues to be a big concern globally this year, with some nations’ economies impacted more than others, largely due to increases in the food and energy sectors thanks to lingering supply chain disruptions caused by the COVID-19 pandemic and the war in Ukraine,” said Sean Murphy, chief data and analytics officer.
“While inflation rates may vary across borders, shoppers have a universal appreciation for getting the greatest value for their money, which Catalina is well positioned to deliver in partnership with our retail and brand customers.”
Grocery shoppers face continued price hikes in key categories
In the U.S., the Catalina Shopping Basket Index measured a 15 percent increase in prices compared to the same quarter in 2021, posting sharper increases in most categories than the U.S. Bureau of Labor Statistics Consumer Price Index. Prices for food enjoyed at home rose 13 percent over the 12 months ending Sept. 30, and the food index overall increased 11 percent percent, according to CPI. The aggregate basket average was up 5 percent from Q1 2022.
Price increases in the basket were led by yogurt (21 percent), closely followed by cereal at 20 percent, hand and bath soaps 19 percent and soft drinks and water 18 percent. At the other end of the spectrum, the basket’s average price posted more modest increases in paper products at 9 percent and soaps and detergents at 6 percent.
Strategies for marketers in inflationary times
“Insights about traditionally price sensitive and value-seeking shoppers apply to more consumers now. This is an opportunity for brands to fine-tune their omni-channel approach to deliver relevant offers and valuable incentives to help shoppers make the most of their dollars in these inflationary times,” said Murphy, who advises brands to consider strategies that are designed to combat inflation:
- To drive sales lift and build loyalty, build omni-channel campaigns that include multiple digital channels and in-store point-of-sale offers.
- Maximize dollars by developing targeted shopper cohorts, built from finely tuned audience segments.
- Use a real-time feedback loop to measure and continuously adjust campaign performance to stretch marketing budgets farther.