Final thoughts

Innovation and appreciation could boost the day after tomorrow

Now more than ever, shoppers navigate through fields of tension. Though not a new challenge, it is amplifying due to budget constraints and ongoing digitization.

On one hand, shoppers desire a wide variety, or at least the perception thereof, craving freedom of choice, maximum flexibility, and a sustainable lifestyle with occasional indulgences. At the same time, they are reluctant to sacrifice comfort, simplicity, or control, and must remain frugal in what they spend. Balancing these opposing forces presents a significant challenge.

Having tracked shoppers throughout the cost-of-living crisis, we now see evidence of a tipping point. Anticipating this shift, we identified and summarized five major topics, while also providing some direction on how to foster behavior changes.

1. Shoppers are cautiously optimistic

There is a change in tonality. Shoppers still need to wiggle budgets but are less susceptible to purely rational incentives; as it is not easy to win shoppers back from private labels, brands need to ‘shine’.

2. There is a mindset of “basic comfort”

Shoppers will try to make room for little pleasures (or cheat moments for younger generations), but not at any price, seeking escapism while keeping their basics in check. It is important to understand whether your brand can deliver on this, because the match counts.

3. Brands need incremental innovation

It takes a visible effort and value-add to make shoppers switch back. A new flavor alone will not do the job, as we are still not in a try-out phase. With high on-shelf competition, it is about real improvement, also to the category, and being indispensable to need fulfillment.

4. Retailers have to appreciate shoppers’ needs

Put emotion back into the game and put the shopper back into focus; making shoppers stick requires changing the narrative from price to appreciation, to address shoppers’ requirements.

5. Support the constructive transformation of lifestyle

Retailers can be curators of perfect choice, and brands act as supporters of the “day-after-tomorrow”-aspirations and lifestyle positivity: good for me and good for the planet; credibility is everything – function, emotion, responsibility: it needs to match the core of the brand.

NOTE: All CPS GfK reports referred to herein are available for purchase.

Retailers covered: top 10 retailers per country

The EU-18 report, including country splits, covers the following categories:

Staple foods, e.g. rice, flour, sugar, pasta
Bread and bakery products
Fresh fruit and vegetables
Drinks, e.g. water, juices, lemonades
Alcoholic beverages, e.g. wine, beer, spirits
Confectionery, e.g. chocolate, bars, pastries

Frozen food incl. pizza & other ready meals
Ice cream
Hot drinks, e.g coffee, tea
Dairy products, e.g. milk, yoghurt
Cheese
Meat, sausage, fish
Butter & Margarine
Detergents & cleaning agents

Toiletries
Cosmetics incl. make-up
Canned food, e.g. fruit, vegetables, ready meals
Cooking oils

Single country reports, including additionally Ukraine, Switzerland, and Norway, are available for purchase upon request.