IGA Unrolls Inflation-Fighting Strategy For 2023

Shoppers are feeling the burn of inflation. Despite some grocery prices decreasing a bit and offering some relief, shoppers are still pinching their pennies and will continue to do so well into 2023. 

In fact, 65% of consumers are highly concerned about the economy and 71% feel the economy will worsen in the next few months, according to Numerator's October Consumer Sentiment Study. 

But there is hope for grocers, as 44% of consumers from all income levels plan to cut back on dining out or food delivery, which means more eating at home.

"This is an opportunity for grocers not only to enhance their share of stomach, but to stress the value of meals from the grocery store over restaurants and reinforce grocers’ commitment to helping their communities weather the economic storm," NGA Director of Communications and External Affairs Jim Dudlicek says. 

Quarterly Marketing Kit Signage & Messaging Addresses Inflation

The Independent Grocers Alliance has a plan for retailers to help shoppers with inflation-busting content all year long, beginning with the 2023 Q1 Quarterly Marketing Kit. Arriving in subscribers' stores the first week of January, the 2023 Q1 kit — themed "Start Fresh," which applies to both a fresh budget and dedication to wellness in the New Year — continues the inflation messaging and adds a valuable comparison tool to show shoppers just how much they're saving by shopping your store and cooking at home compared to dining out and ordering in.

"Independents must double down on this idea of restaurant comparisons," IGA CEO John Ross says. "Recent data shows that away-from-home eating costs about 3.4 times more than food prepared at home. That's a huge savings, especially for families struggling due to inflation cost increases."

The restaurant comparisons in the Q1 signage go beyond pricing, too. The "start fresh" theme shows the difference in calories between the restaurant meal and the same meal prepared at home.

"Many shoppers focus on healthy eating in the New Year to reset after the holidays. This quarter's theme of 'start fresh' has an added focus on making it better at home, which is another powerful tool for retailers to use in helping their shoppers make the best choice for their health and their budget," IGA Senior Manager of Shopper Content Marketing Megan Drazer says.

Kit subscribers will also gain access to Q1-themed digital imagery that they can use on social media, in email marketing, and on their website and eCommerce pages, which includes the restaurant comparisons. That creates an omni-channel marketing experience for their shoppers, allowing them to see the message in multiple places and serving as a reminder that their local Independent Grocers Alliance store is actively helping them get access to the best food for their health and budget. 

Aisle blades in the 2023 Q1 kit focus on starting fresh and cooking at home to save money and calories.

Aren't Grocery Prices Declining?

While the most recent statistics show that overall grocery prices have surged 12.4% through October compared to a year ago, prices on some items are declining (compared to the same time last year):

• Prepared mixed vegetables down 68% (average price)
• Striped bass down 41.8%
• Conch down 13.2%
• Crab down 9.5%
• Lobster down 7.2%
• Mackerel down 6%
• Assorted bagels down 48%
• Bulk dried beans down 5.1%
• Kombucha drinks down 22.7%.

These lower prices are a welcome relief for shoppers, and independent retailers who offer items whose prices are declining should promote those new prices to shoppers. But it doesn't mean inflation is over. 

The  Consumer Price Index for All Urban Consumers (CPI-U) is still rising — up 0.4 percent in October on a seasonally adjusted basis. The all items index is still up 7.7% over the last 12 months, according to the U.S. Bureau of Labor Statistics.

"Many people are making the decision between filling up their gas tank or feeding their family right now," Ross says. "We need to demonstrate to our shoppers that when we win, they win. If prices are down on seafood, tell your shoppers how excited you are to pass that savings on to them. If frozen food is the way to save on vegetables right now, tell them that. They need to see you as a partner and a resource to remain loyal."