“Please pass the gravy!” As the year draws to a close, the cascade of close-knit holidays almost always means an increase in parties and family gatherings. 2 years ago, fears around health and safety made an unfathomable impact in these traditions, causing many to wonder if the holiday gathering would ever return to form. It has.
2021 saw a resurgence in holiday get-togethers that rivaled pre-pandemic numbers. In addition to this, fuel prices have been steadily decreasing, meaning that travel – often a critical component of gatherings – will likely increase this year. However, the current inflationary impact of mealtime and grocery shopping is a concern presenting a new type of difficulty for most shoppers. Groups that were previously asking “Is it safe to host a dinner?” are now asking “Can we afford to host a dinner?”
Holiday Food is Not Regular Food
From the turkeys and green bean casseroles of Thanksgiving, to the brisket and latkes of Hanukkah, to the sugar cookies and (sometimes) goose of Christmas, the ceremonial and celebratory nature of gatherings often consists of an atypical fare – in atypical quantities. Families aren’t crowding around the table to eat peanut butter sandwiches together.
In some cases there are certainly trade-offs to be made – shoppers can save some money by foregoing the ready-made foods, if they’re willing to spend more time doing the food preparation themselves. But cooking from scratch still doesn’t address the volume issue – making pie to accommodate 20 guests is far different from making pie for 4 people.
Our 2022 study on inflation showed that 39% of respondents were cutting out indulgent grocery items and purchasing only essential items. For many shoppers, this means very hard choices and significant shopping behavior changes will need to be made when preparing for holiday dinners. Typically this might mean sticking to the basics, or scaling back to just the staples. But there’s another slight wrinkle. A recent article from AARP notes that inflation is driving up the cost of holiday food staples, stating:
“The average cost of Thanksgiving dinner is up 14 percent this year, to $53.31, which is $6.41 more than it cost in 2020, according to the American Farm Bureau Federation (AFBF).”
The result is that shoppers are making tough choices and considering their alternatives to maintain tradition without breaking the bank. The Food Industry Association notes that 71% of consumers intend to make adjustments to their holiday meal shopping to adapt to the economic landscape.
Solution and Considerations:
Retailers need to be aware of the difficulties facing shoppers and how they’re navigating inflationary times. The buyer’s journey is changing rapidly and drastically due to external forces. Many businesses are already aware of the need for proactive consumer behavior analysis, and are adjusting their methods of research correspondingly. Making adjustments to displays, marketing materials and promotions can help guide shoppers through alternatives they may not have considered, and allow stores to become an ally.
Anticipated Changes to Shopper Behavior May Include:
- Earlier shopping
- Increased deal-hunting (online and in-store)
- Substitution for store brands
- Reduction of impulse buying
- Fewer purchases of ready-made dishes in favor of home-cooking
- Smaller meals with fewer dishes
- Pot-luck style gatherings where guests all bring dishes
- Substitution for new, less-expensive recipes
Strategic Examples:
There are already several compelling examples of stores preemptively addressing public concern around Thanksgiving. Walmart, for instance, is offering a special holiday deal called “This Year’s Thanksgiving Meal at Last Year’s Price.” Aldi’s “Thanksgiving Price Rewind” accomplishes the same objective, while Lidl is offering pre-made Thanksgiving baskets to feed 10 people at an affordable price, according to GroceryDive. Summerhill Market had already been in the habit of offering prepared meals when the pandemic struck, and this year they’re offering the same package for smaller attendance lists. Efforts like these not only lend critical assistance in the path to purchase, but also increase brand loyalty.
A final consideration should be given to the potential decentralization of the meal as the focal point of the family gathering. From a merchandising standpoint, offering experiential alternatives in holiday-themed sections can broaden the conversation and improve the options for shoppers. If the meal is just one element of the gathering experience, the expectations around it can be lowered. This allows room for activities like games (board games, card games, video games), scavenger hunts, arts and crafts, and movies!
