January 30th, 2023, Clifton Mark
The rising cost of living through 2022 into 2023 has many American looking to economize. According to YouGov data, 8.9% of Americans are prepared to cut grocery costs if their household budgets are squeezed by rising cost of living. Yet this may be challenging since food prices were rising quickly compared to those of other items. In 2022 through November, grocery prices rose 12% compared to a 7.1% overall inflation rate.
In the face of rising food prices, which grocery stores provide the best value for money, according to consumers? YouGov BrandIndex tracks more than 27000 brands worldwide according to 16 brand health metrics, and those brands include 33 major US supermarkets. Value is net measure of how many consumers believe (or not) that a brand provides good value for money. The following table shows the ten supermarkets with the highest value scores.
Top spot goes to Aldi. The German-owned discount retailer had a Value score of 33, far ahead of its nearest competitors, Krogers (18) and Trader Joe’s (13). Value score is a net metric calculated by subtracting the percentage of consumers who say that Aldi provides poor value from the percentage of consumers who say it provides good value.
When asked, shoppers looking for vegan and vegetarian food agree that Aldi, Trader Joe’s and Kroger provide the best value for money, but there are some differences further down the list. Those who are looking for vegan and vegetarian food when shopping for groceries put Amazon Fresh (14.3) and Sprouts Farmers Market (11) in the fourth and fifth positions, neither of which make the top ten among the general population.
While inflation in the US is slowing, food prices are likely to remain high, which suggests that value for money will be a key metric for grocers in 2023.
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Methodology: YouGov BrandIndex collects data on thousands of brands every day. A brand’s Value score is based on the question: “Which of the following brands do you think represents GOOD/POOR VALUE FOR MONEY?” Data is from surveys of adults aged 18 years and above residing in the US 17 October, 2022 to 16 January, 2023. Scores are based on a four-week moving average. Learn more about BrandIndex.