Shopping Satisfaction in Supermarkets Varies with Age Groups
In a significant change, the way Gen Z, Millennials, and Gen X shop for groceries is evolving, with a noticeable shift away from traditional supermarkets towards stores like Walmart, ALDI, dollar stores, and club stores. This change is primarily driven by value-seeking behavior in response to inflationary pressures and life stage changes, according to a recent study by The Feedback Group.
Younger consumers are prioritizing savings on groceries, reallocating spending towards other necessities such as housing, vehicles, and insurance. This financial rearrangement has led to a gravitation towards more affordable food retail formats.
Cost savings and value shopping are key reasons for this shift. Retailers known for lower prices or better deals, such as Walmart, ALDI, and dollar stores, are favored by these generations. The appeal of these stores lies in their discounted groceries compared to supermarkets.
Changing shopping habits also play a significant role. Gen Z and Millennials are more tech-savvy and open to digitally enhanced shopping experiences. They favor formats that adapt well to these preferences, such as those offering AI for product recommendations.
Supermarkets, however, are losing relevance for younger shoppers. Data shows a significant decline in their popularity among Millennials and Gen X from 2024 to 2025, indicating a generational reshuffle in shopping preferences.
Despite this shift, supermarket satisfaction remains high overall, with a score of 4.39 on a five-point scale. However, younger shoppers prefer other formats, with food quality and cleanliness being the leading factors in supermarket performance ratings.
Interestingly, sensory elements such as pleasant aromas, enjoyable music, and food sampling can significantly influence spending. Shoppers who notice enticing food aromas spend 25% more, those who notice enjoyable music spend 35% more, and those who sample foods spend 67% more.
Doug Madenberg, chief listening officer at The Feedback Group, notes that personalized recognition and perceived listening by supermarkets contribute to loyalty and higher spending. In-store mobile use remains strong, with one-third of shoppers using phones for tasks like finding specials and accessing loyalty programs.
The study also reveals that supermarkets are popular with older demographics (Silent Generation and Boomers), but less compelling to younger shoppers (Gen Z, Millennials, and Gen X). A positive interaction leads to higher overall satisfaction and increased spending, according to The Feedback Group.
The Feedback Group has also recently issued a study exploring shopper perceptions surrounding prices, inflation, and tariffs and their influence on consumer behavior in supermarkets. While value for money earns the lowest score in supermarket performance ratings, shoppers using cashier-assisted lanes report higher satisfaction than self-checkout users, indicating the continued value of human interaction.
In conclusion, the shift in food shopping preferences among Gen Z, Millennials, and Gen X reflects a combination of economic factors, evolving consumer priorities, and preferences for shopping formats that better align with these factors. Supermarkets can improve their appeal to younger shoppers by focusing on sensory experiences, personalized recognition, and perceived listening, among other factors.
- Product innovations that cater to Gen Z, Millennials, and Gen X's lifestyle preferences, such as AI for product recommendations, could help supermarkets regain lost ground with these generations.
- The food-and-drink sector should consider incorporating sensory elements like pleasant aromas, enjoyable music, and food sampling to encourage spending among younger consumers.
- In the quest for a more affordable shopping experience, Gen Z, Millennials, and Gen X are increasingly integrating digitally enhanced shopping experiences, like mobile apps for finding specials and accessing loyalty programs, into their business and shopping routines.