A new Alvarez & Marsal report finds that more grocery shoppers are planning to switch to lower-priced retailers altogether, not just trade down to store brands. This is a meaningful escalation in consumer price sensitivity that goes beyond typical value-seeking behavior.
For produce, this shift matters because value-format retailers like Aldi, Lidl, and Walmart tend to run leaner produce sets with less variety and more commodity focus. If shopper migration accelerates, category managers at traditional grocers may face volume softness while value players see increased demand.
This is a trend worth tracking closely as you plan second-half assortments and promotional calendars. Retailers that can credibly compete on produce value — without gutting the category — will be better positioned to retain and recapture shoppers.