The US grocery slowdown is real
2 hours ago
- #Consumer Spending
- #US Grocery Slowdown
- #Retail Strategy
- Negative unit growth in US grocery sales became evident from mid-2025, masked by price increases, with a sharp decline since February 2026.
- Factors include reduced SNAP benefits, tighter eligibility, rising gas prices, and high inflation, straining lower-oldle-income households.
- Bain's Consumer Health Index shows a neutral outlook, with spending intent low among lower- and middle-income groups despite tax refunds and pandemic savings.
- 80% of Americans aim to spend less, with 28% cutting grocery bills via cheaper brands, fewer items, coupons, and GLP-1 adoption.
- Grocery units dropped from nearly flat in June 2025 to down 1.8% in June 2026, indicating a significant deterioration.
- Value retailers like discount, mass, and club stores are gaining shoppers, but overall unit sales remain soft due to reduced purchasing.
- Leading grocers focus on value beyond low prices, using targeted promotions, loyalty programs, and private brands to build trust and attract customers.