Shifting consumer behavior is changing what it takes to stay competitive in grocery.
Upside's inaugural Consumer Spend Report, based on over 1.1 billion transactions and feedback from more than 7,000 households, sheds light on the growing trend of the "uncommitted customer." These are shoppers who no longer remain loyal to one store, instead opting to spread their spending across multiple retailers — a behavior driven by price sensitivity, economic pressures, and the increasing convenience of cross-shopping.
Tyler Renaghan, VP, Retail at Upside, and Tom Henry, Chief Data and Deputy Chief Information Officer at Schnucks, recently sat down with Progressive Grocer to talk about the latest in grocery spending trends and how grocers can get — and stay — ahead. Read on for more, or watch the webinar on demand.
Today’s "uncommitted customers" are secondary or tertiary shoppers who lack loyalty to a single grocery store. Unlike traditional loyal shoppers who favor one primary retailer, uncommitted customers now shop across several locations, looking for value, convenience, and variety.
"The uncommitted customer likely doesn’t have a primary store — they’re shopping at all the different options available," explained Tyler Reneghan, VP of Grocery at Upside.
This behavior cuts across all income levels and demographics, impacting not just value-driven shoppers but also premium segments.
This rise in cross-shopping creates both a challenge and an opportunity for retailers. The challenge lies in capturing more of these shoppers’ spending, while the opportunity exists in turning them into loyal customers through targeted strategies.
Several key trends are fueling this shift in shopper behavior:
Inflation, economic uncertainty, and heightened price sensitivity are leading customers to look for better deals across multiple stores. As Tyler noted, "Price sensitivity is driving customers to spread their shopping across many different stores. That’s what we call the rise of the uncommitted customer."
Consumers are increasingly using online platforms and apps to fulfill their grocery needs, particularly for items they can easily order from competitors like Amazon or Walmart. Tom Henry, Chief Data Officer at Schnucks Markets, emphasized that "the modern shopper has more opportunity to fulfill their grocery needs across many different channels."
According to the Consumer Spend Report, the average grocery shopper visits 5.2 stores to meet their needs. This reflects how shoppers are leveraging both traditional retailers and new ecommerce players, further complicating the competitive landscape for grocers.
The uncommitted customer poses a significant challenge: how can retailers convert these transient shoppers into loyal ones? According to Tyler:
"It’s not enough just to get them in the door. It’s creating that curated experience — the 'theater of grocery' — that will keep customers coming back."
The opportunity for retailers lies in offering personalized promotions, competitive pricing, and seamless convenience. By leveraging both in-store experiences and digital channels, retailers can create stronger emotional connections with customers.
Tom highlighted that "customers want personalization, but they also want an emotional connection," stressing the importance of blending digital innovation with traditional in-store experiences.
Data is key to understanding uncommitted customers and developing strategies to win them over. Accurate customer data helps retailers anticipate shopper needs and offer personalized promotions that speak directly to their preferences.
Tyler underscored the importance of dynamic promotions: "Our focus is around creating dynamic promotions — what’s it going to take to help that specific customer change their behavior?" Retailers that successfully use data to deliver the right message at the right time can transform uncommitted customers into loyal ones.
The expectations of modern shoppers are only going to evolve further, requiring grocery retailers to stay ahead of the curve by investing in personalization, multi-channel experiences, and emotional connections. Grocers must prioritize delivering value, convenience, and premium offerings to satisfy diverse customer needs.
As Tom pointed out:
"You have to meet customers where they are, anticipate their needs, and offer tailored experiences that keep them coming back."
To win over uncommitted customers, retailers must provide differentiated products, such as private labels, and create memorable shopping experiences that foster long-term loyalty.
The Upside team is made up of data scientists and industry experts who are passionate about delivering empowering content to our readers. With a focus on providing practical insights and meaningful perspectives, we create engaging materials across a wide range of topics. From exploring industry trends and offering expert analysis to sharing useful tips and inspiring ideas, our team works diligently to provide you with the information you need to thrive.
Request a demo of our platform with no obligation. Our team of industry experts will reach out to learn more about your unique business needs.