One of the most noticeable impacts of inflation in recent years has been the rise of grocery prices. From 2019 through 2023, food prices outpaced the overall inflation rate, rising a total of 25% according to the U.S. Department of Agriculture.
As a result, some grocery stores have gotten too expensive for many Americans, prompting a shift toward discount retailers. Many people are also spending time shopping around for the best deals, rather than getting all their shopping done at one retailer.
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“Grocery habits are shifting as shoppers continue to prioritize value, encouraging consumers, of all income levels and age groups, to adopt increasingly fragmented shopping patterns in an attempt to find the best deals. In a recent study, we found that visitation to the discount grocery category increased 12.9% on average, when comparing February 2024 to February 2023,” said Michael Della Penna, chief strategy officer at InMarket.
“We’re also continuing to see the prevalence of dollar stores within consumers’ regular grocery hauls, notably a 6% increase in the share of Gen Z shoppers and a 4% increase in the share of shoppers within the $100K+ salary range at dollar stores in 2023,” he added.
In other words, many consumers across different demographics are feeling the effects of inflated grocery prices and changing their shopping choices.
And for middle-class Americans in particular, certain grocery stores may be generally worth avoiding due to cost concerns. Here are four to consider skipping, according to Melissa Cid, consumer savings expert for MySavings.com and a middle-class mom of four kids.
The Fresh Market
The Fresh Market is a gourmet grocery chain located in the eastern half of the U.S., but despite having great products, it might not be the best choice for those looking to save on groceries.
“If you are on a budget, consider skipping specialty grocery stores like The Fresh Market where you will find higher prices on bread, exotic cheeses, snacks, dairy and produce,” said Cid.
Compared to many alternatives, “You’ll pay a higher price for the curated private label brands that The Fresh Market carries,” she added.
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Whole Foods Market
Whole Foods is another high-end grocery store with delectable products, but it’s often one of the more expensive options.
“Whole Foods Market is not a grocery store to shop if you are trying to save money. Higher-quality ingredients come with a higher price tag. If you are trying to save money with a middleclass budget, steer clear of Whole Foods Market. You’ll find a smaller selection and more expensive grocery staples like bread, pasta, snacks and dairy,” said Cid.
Publix
As ubiquitous as Publix is in Florida as well as some other parts of the Southeast, you might think that this grocery store is a good option for middle-class families. However, not everyone sees Publix as a consistently budget-friendly option.
“Publix should be avoided if you don’t shop when your favorite items are on sale or BOGO (buy one, get one free),” said Cid. “Publix offers some amazing sales, but if you don’t plan correctly, you will be paying for it with higher prices when products aren’t on sale.”
Wegmans Food Markets
Wegmans is a grocery chain loved by many people in the Northeast and Mid-Atlantic regions of America. While it has a loyal following, not everyone can afford to shop there.
“Wegmans Food Markets has become pricey for many middle-class families, unless you purchase their private label brands,” said Cid. “Avoid Wegmans prepared food section, which is a wallet drainer for the quantity you’ll receive.”
Tip To Save: Consider the Private Labels
Wherever you do decide to grocery shop, one tip to keep costs down at some stores is to purchase their private label brands, meaning the store-name brands that come from an unnamed third party. As Cid suggested with Wegmans, that’s one way to make grocery shopping more affordable, although some stores like The Fresh Market still have comparatively pricey private label offerings in some categories.
The good news is that more retailers are starting to adapt in this area.
“The continued pressure of rising costs, and rise of discount and dollar stores as go-to grocery stops, have made the competition for that value-based consumer even more fierce. Big-box stores and traditional grocers are undeniably feeling the impact. In fact, grocery was the most susceptible category for losing customers to discount stores for a leading mass merchant, according to a recent lapsed/lost analysis InMarket conducted,” said Della Penna.
He concluded, “As a result of these shifts, we’re continuing to see major players launch high-quality, low-cost private label lines to compete, aimed at attracting and retaining those key grocery shoppers.”
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This article originally appeared on GOBankingRates.com: 4 Retailers the Middle Class Should Stop Buying Groceries at To Save Money
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