Updated
Updated · Grocery Dive · Jun 22
Grocery Shoppers Cut Purchases 0.9% as 29% Turn to BNPL and SNAP Rolls Drop 12%
Updated
Updated · Grocery Dive · Jun 22

Grocery Shoppers Cut Purchases 0.9% as 29% Turn to BNPL and SNAP Rolls Drop 12%

1 articles · Updated · Grocery Dive · Jun 22

Summary

  • 0.9% fewer food and beverage units sold in the week ended May 31 extended a monthlong slide, with every May week down year over year as shoppers pulled back.
  • 2.7% grocery inflation in May kept pressure on budgets near a three-year high; beef and veal prices rose about 13%, while tomatoes and instant coffee jumped roughly 32% and 24%.
  • 29% of consumers said in March they had used buy now, pay later for groceries, up from 25% a year earlier, underscoring how more households are relying on short-term credit for essentials.
  • 37.3 million people received SNAP in March, down about 12% from a year earlier after tighter eligibility rules under Trump-era legislation, raising risks of food insecurity and weaker grocery demand.
  • Consumer sentiment rose 9% in June after four monthly declines, but it remained 19% below a year earlier, showing inflation anxiety still dominates grocery spending behavior.

Insights

As millions lose food stamp benefits, is 'buy now, pay later' becoming the new safety net for groceries?
With new rules cutting 4.8 million from SNAP, who is now responsible for feeding America's hungry families?