From the bakery aisle to the dairy case, and the meat counter to the ice cream freezer, surging inflation for groceries has brought about an unexpected reality: Americans are buying less food at the store.
Shoppers have put billions fewer items in their grocery carts in the past few years compared with pre-pandemic levels, resorting instead to a combination of online purchases, bulk buying — and simply consuming less, especially in lower-income households. They are doing so in response to prices that have jumped for food, but also other essentials such as housing and insurance that have taken a bite out of their wallets.
Producers of consumer packaged goods were able to boost revenue by raising prices during the run of high inflation in recent years. But now, even as prices have moderated, retailers and producers are rushing to reinvigorate sales volumes with markdowns and promotions.