🧠 5 Insightful Minutes Inside the Mind of Today’s Shopper | 5IM

Summary

Omni Talk Retail Podcast Summary

Episode: 🧠 5 Insightful Minutes Inside the Mind of Today’s Shopper | 5IM
Release Date: May 28, 2025
Host: Omni Talk Retail
Guests: David Schneideman, A and M Consumer and Retail Group

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Introduction

In this episode of Omni Talk Retail, hosts Chris Walton and Anne Mezzenga delve into the latest consumer sentiment trends with David Schneideman from the A and M Consumer and Retail Group. The discussion centers around current consumer behaviors, spending patterns, and strategic insights for retailers navigating the evolving retail landscape.

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Current Consumer Sentiment

Dave Schneideman begins by outlining the impact of macroeconomic factors on consumer sentiment as summer approaches.

“With the macroeconomic uncertainties, you know that is having a huge effect on consumers... consumers are planning on spending less and they're planning on saving more.”
[00:26]

Schneideman highlights that events such as COVID-19, supply chain disruptions, geopolitical tensions, inflation, and tariffs have collectively influenced consumers to adopt a more cautious approach. Specifically:

• 10% of consumers plan to reduce their overall spending.
• 30% of consumers intend to increase their savings.

He emphasizes that the primary area of reduced spending is discretionary, including sectors like:

• Restaurants and prepared foods
• Luxury goods, such as jewelry and accessories

Despite these shifts, spending in Food & Beverage (F&B) remains relatively stable, suggesting that while consumers are cautious, essential spending areas maintain their footing.

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Consumer Trade-offs for Better Value

The conversation shifts to the specific trade-offs consumers are willing to make to gain better value.

“About 50% of consumers are planning on switching to cheaper brands... applying to mass big box stores or discounters.”
[01:50]

Key strategies consumers are employing include:

1. Switching to Cheaper Brands: Approximately 50% of consumers are opting for more affordable brands to manage their budgets.
2. Reducing Grocery Purchases: Around 25% are purchasing fewer groceries overall.
3. Choosing Discounted Retailers: Another 25% are shifting their shopping to discount or big-box retailers to save money.

Additionally, Schneideman notes a significant willingness among consumers to experiment with new brands:

“About 30% of consumers will try almost, almost 10 new brands. And the leading factor of that is price.”
[02:58]

Other influencing factors include:

• Desire for healthier options
• Recommendations from friends, family, and influencers

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The Rise of Private Label Products

The discussion transitions to the growing prominence of private label products in the consumer market.

“Almost 75% of our reports is that people are purchasing private label somewhat often or often... purchase is price.”
[03:01]

Key insights include:

• 75% of consumers are frequently purchasing private label brands.
• Over 50% believe the quality of private labels has improved compared to the previous year.
• Private labels are favored for their:
  • Affordability
  • Quality
  • Better ingredients
  • Increased accessibility

Price remains the dominant driver behind the adoption of private labels, accounting for the majority of purchase decisions, followed by factors like taste and ingredient quality.

Schneideman concludes that private labels are becoming a staple in consumer shopping habits and should be integral to retailers' strategic planning.

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Strategic Advice for Retailers

As the episode wraps up, Schneideman offers actionable advice for retailers to effectively navigate the shifting consumer landscape.

“Consumers are engaging in loyalty programs to stretch their spending power... Over 60% are respondents interact with different technologies to influence their buying decisions.”
[04:09]

Key Recommendations:

1. Enhance Loyalty Programs:

   • Approximately 2/3 of consumers participate in loyalty programs within food and beverage and grocery sectors.
   • 75% of purchases among loyalty program members are influenced by these programs, with even higher engagement among consumers under 45 years old.
   • Effective loyalty programs can significantly drive repeat purchases and customer retention.

2. Leverage Technology:

   • 60% of consumers interact with various technologies that influence their buying decisions, particularly subscriptions.
   • 75% of subscription-based purchases are driven by deals, promotions, and convenience.
   • 20% of all grocery purchases are made exclusively through subscription models, reflecting a strong preference for a frictionless shopping experience.

Schneideman emphasizes that integrating loyalty programs with advanced technological solutions can dramatically enhance consumer engagement and purchasing behavior.

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Conclusion

David Schneideman provides a comprehensive overview of current consumer sentiment and behavioral trends, offering valuable insights for retailers aiming to adapt and thrive in a dynamic market. By focusing on price-sensitive strategies, embracing private labels, and utilizing loyalty and technology effectively, retailers can better meet the needs of today’s vigilant and value-conscious shoppers.

For a deeper dive into the findings, listeners are encouraged to read the full A and M Consumer and Retail Group's latest consumer sentiment survey available in the show notes.

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Notable Quotes:

• “Consumers are planning on spending less and they're planning on saving more.”
  David Schneideman, [00:26]

• “About 30% of consumers will try almost, almost 10 new brands. And the leading factor of that is price.”
  David Schneideman, [02:58]

• “Private label is here to stay... Huge perception improvement and needs to be part of a retailer's plan going forward.”
  David Schneideman, [03:01]

• “Consumers are engaging in loyalty programs to stretch their spending power... They know what they like, they know what they don't like.”
  David Schneideman, [04:09]

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This summary encapsulates the key discussions and insights from the episode, providing a comprehensive overview for those who haven't had the chance to listen.

Transcript

[A]

Foreigning us now for five insightful minutes to discuss his company's latest current consumer sentiment survey is the A and M consumer and retail groups. David Schneideman. Dave, let's start with this. What does consumer sentiment look like going into the summer months?

[B]

You know, first, thanks for having me as always, Chris and Anne. So you know, with the macroeconomic uncertainties, you know that is having a huge effect on consumers. You know, first was Covid, then supply chain issues, then the war, no inflations, and now last tariffs. So consumers are planning on spending less and they're planning on saving more. During the financial uncertainties, they're not super worried, but they're being, I would say a little bit more vigilant. In fact, about 10% of all consumers are expected to spend less where about 30% of consumers are planning on saving more. Now however, most of the coding is coming from discretionary spending. So particularly think like restaurants going out prepared food along with luxury goods, jewelries and accessories. So F and B that it is it is still around flat. We'll talk more about that shortly. But consumers are just being mindful of of the unknown right now.

[C]

So Dave, what kind of trade offs are consumers willing to make then in search of a better value?

[B]

Yeah so, so I mentioned that overall about it's it's kind of there's not much change with FMB from a macro aspect.

[C]

Okay.

[B]

But particularly about 25% of consumers still do plan on cutting back within food and be so think groceries. And with that there's a couple of different ways. About 50% of consumers are planning on switching to cheaper brands. So cheaper brands is one option. The second is buying fewer groceries, which is around 25% of consumers planning on doing that. And then the last is just switching to cheaper stores. So going to be more mindful of mass big box stores or discounters. And that's about the other 25%. Additionally within that consumers are more willing to try other brands. Right now, in fact, about 30% of consumers will try almost, almost 10 new brands. And the leading factor of that is price. So price is having a huge impact on on trial but you know, still wanting to be healthy, desiring to try new products and then just recommendations from from friends, families and influencers are still having impact on consumer penetration.

[A]

Dave, what does all that mean for the private label side of the business?

[B]

Yeah. So consumers are increasingly embracing private label. Almost 75% of our reports is that people are purchasing private label somewhat often or often. And over 50% of consumers believe private label has improved over last year. So private label is here to stay. Perception are at an all time high in terms of quality, affordability, ingredients, accessibility. No surprise there. The leading driver of private label is is purchase, is is price. However, taste ingredients still make up about 25% of the main purchase influencing power factors. So, so price ingredients are here as well. So, so private label is definitely here. Huge perception improvement and and needs to be part of a retailer's plan going forward.

[C]

So then Dave, as we close, what advice do you have for retailers who kind of are trying to navigate these changing consumer sentiments?

[B]

You know, besides looking at price, having the right assortment and merchandising, you know, two things that aren't talked about as often are about loyalty and technology within loyalty. Consumers are engaging in loyalty programs to stretch their spending power. About 2/3 of all consumers use a loyalty program in food and beverage and grocery and it's about 75% of purchases within the loyalty are influenced by loyalty programs. That's even higher for consumers who are under the age of 45. So loyalty programs, huge. And then the other technology. Over 60% are respondents interact with different technologies to influence their buying decisions, particularly subscription. Subscription models influence about 75% of purchases. In fact about 20%. Yeah, it's crazy. About 20% of all grocery purchases are done 100% via subscription, which is, which is crazy. So one in five consumers are doing all of their grocery shopping online and, and about 75% are doing at least 75% of their grocery shopping online. So subscription models are here and, and, and the main drivers besides deals and promotion, just convenience. We live in a world where people, you know, time is money, they know what they like, they know what they don't like. And just that frictionless approach to grocery buying, which is a daily, weekly, monthly thing is, is is huge to the consumer. So let don't forget about loyalty and technology and they kind of go hand in hand. Huge impact to driving purchasing decisions.

[A]

Great stuff, Dave. Thank you.

[C]

Thank you Dave.

[A]

If you want to read the latest consumer sentiment survey from our friends at the A and M Consumer and Retail Group, you will find it in full in our show notes from today's episode.