A Winning Formula for Grocers Amid Inflationary Pressures

To understand why some brands beat the competition with respect to CSAT and customer intent to spend more, we dig into specific purchase intent drivers to uncover “the why behind the buy." Our analysis indicates grocery chains with the best Customer Satisfaction (CSAT) tend to do a better job than the peer group at delighting customers on Price, Selection, and Speed / Checkout.

Price

Price remains the most selected factor when shoppers consider why they like their favorite stores. It is no surprise we have seen focus on price begin to pick back up with inflation this year, with the percentage of grocery shoppers selecting price as a driver rising from May 2022 through August 2022 after dropping for most of 2021.

Aldi is the undisputed champion when it comes to “Price” Customer Satisfaction, having remained in the top position against competing grocery chains since at least January 2021. Its T3M August 2022 NPP of 79% is more than triple the industry average of 23% NPP.

Famous for its discount grocery prices, Aldi even sports the tagline “Quality Food. Everyday Low Prices.” To keep prices competitive, the company generally avoids selling brand name products, but does frequently sell overstock products.

Still, even long-time “Price” winner Aldi may need to watch its back in the Northeast. Market Basket, with 90 locations across New England, is gaining quickly on “Price” sentiment. The grocery chain saw its NPP jump from 24% for T3M February 2022 to 62% for T3M August 2022. One happy shopper recently shared with HundredX, “Market Basket is really popular in this area due to its great prices.” Another shared, “I shop here once monthly to stock up on freezer and pantry staples. I appreciate the prices, employee treatment, and the options available."

Selection

Consumers want more than just low prices. They also want their grocery stores to feature a great selection of items. However, supply chain problems have plagued grocery stores since the start of the COVID-19 pandemic. “Selection” NPP across all grocery stores has steadily declined from 51% for T3M January 2021 to 44% for T3M August 2022. Though supply chain problems are off their peak, grocery chains still find themselves with limited stock on some items. For months, a leading national chain has displayed the message, “We apologize, but due to shipping delays, some advertised [store brand] items may not be available to purchase” on its website.

Wegmans Food Market, the privately held chain with more than 100 stores across the U.S., leads in “Selection” customer satisfaction, with an NPP of 73% for T3M August 2022, far ahead of the industry average 44%. Wegmans boasts a relatively high selection of prepared meals and organic products. It partners with more than 400 family farms to stock its shelves with fresh produce. “Amazing selection and great prepared foods,” one Wegmans shopper said to HundredX.

Giant Eagle soared recently in sentiment towards “Selection,” up from a 41% NPP for T3M March 2022 to 59% NPP for T3M August 2022. The chain emphasizes its variety and huge assortment, and it appears “The Crowd” has taken notice. One customer noted, “Giant Eagle has a few items I purchase that are hard to find elsewhere, so I like knowing that I can stop in and find them there. I appreciate the selection of items, as well as the fact that the store is usually less crowded than other similar stores.”

Speed / Checkout

Stores’ speed and checkout process also play an important role for consumers when it comes to customer satisfaction. Trader Joe’s has long held the highest slot in terms of “Speed / Checkout” Customer Satisfaction, with an NPP of 54% for T3M August 2022, way ahead of 30% for the industry. Based in California, Trader Joe’s has more than 530 locations across the U.S. Interestingly, Trader Joe’s locations don’t have online pickup or self-checkout. They do, however, have famously cheery and helpful employees.