Gen Z, Grocery Price Wars, and Holiday Shopping - Monthly Snacks #97

Campaign corner

Halloween is one of the most appreciated holidays and brands are “fighting” to show their products with the most creative ads. Here are two of our favorite commercials this Halloween.?

Unexpected guests. Looking for creative ad inspiration? Snickers is a prime example. In their latest commercial , a man grabs a bowl of Snickers bars, ready to greet trick-or-treaters, including the iconic green and yellow M&M characters. However, he's less than impressed with their costumes and sarcastically remarks how dull it is to dress up as giant candy for Halloween. Confused? You might need a Snickers.?

Creepy smiles. Heinz is here to put a smile on your face. In their latest Halloween campaign, Heinz Smiles , the brand, along with creative agency Gut New York, turns ketchup smears into eerie clown makeup. With a dash of Joker-like energy, happy diners transform into sinister clowns thanks to strategically placed sauce. The campaign's tagline, “It ha ha has to be Heinz,” is a clever twist on their established brand message, proving once again that creativity in advertising knows no limits.

What happened in Retail tech?

RFDI for the fresh department. Kroger is introducing Radio-Frequency Identification (RFID) technology in its fresh departments, starting with the bakery, to provide workers with more accurate and frequent inventory updates. Partnering with Avery Dennison, this move aims to boost efficiency and reduce food waste as grocers increasingly adopt automation.

Gen Z and the need for tech. To attract younger consumers, grocers need to embrace technology and innovation in their private brand offerings, according to recent research by FMI. While over 80% of grocery executives recognize the importance of appealing to this demographic, only 20% feel that their private brands are performing well in this area. Gen Z, in particular, is eager for fresh and vibrant food experiences but often finds that their shopping habits don’t match their preferences, with fresh foods making up just 27% of their basket spend. To bridge this gap, retailers can leverage digital marketing, in-store QR codes for cooking inspiration, and personalized recommendations through generative AI to enhance their appeal to tech-savvy shoppers.

What experts say…

Grocery price wars. As grocery prices rise due to inflation, a new era of grocery price wars is emerging, with major retailers like Walmart, Kroger, Target, and ALDI aggressively cutting prices to attract cost-conscious consumers. Walmart has reduced prices on thousands of essential items following a revenue increase, while Kroger and Target are also implementing price cuts to regain market share and customer loyalty. Additionally, Amazon has entered the fray with its budget grocery brand, "Saver," designed to compete with existing retailers and emphasize affordability, despite concerns about potential discriminatory pricing practices using advanced technology like electronic shelf labels. Here’s what Lisa Goller thinks about the topic:?

Shopping locally. A recent LendingTree survey highlights the difficulties mom-and-pop businesses face in attracting local shoppers , revealing that while 29% of U.S. adults are morally opposed to shopping at Amazon, 85% still purchase from the retailer. Despite 90% believing that shopping locally benefits their community, 80% cite inflation as a barrier to supporting local businesses, with cost, convenience, and product selection being primary factors influencing their shopping decisions. While many consumers express guilt over online shopping—particularly younger generations—price sensitivity remains a major challenge, underscoring the complex relationship between supporting local economies and the convenience of larger retailers. This is what Doug Garnett said on the topic:?

Statistic of the week

47% of shoppers plan to return to brick-and-mortar stores this holiday season.

An Experian survey reveals that almost half of shoppers want to do their holiday shopping in-store. Half of baby boomers, 46% of Gen Xers, and millennials, and 44% of Gen Zers indicated they will shop in physical locations. While a third of baby boomers prefer online shopping via desktop or laptop, 36% of Gen Zers plan to shop using smartphones or tablets, making it the most popular method among younger consumers. Overall, the report highlights a focus on savings, with shoppers more inclined to visit discount and mass retailers this holiday season.

In other news…

Future of grocery. A report from 84.51°, Kroger’s retail analytics unit, predicts that grocery shopping will increasingly feature technologies such as smart carts, digital coupons, and recipe apps within the next two to three years. It also anticipates ongoing cost-conscious behavior and a growing focus on health-oriented shopping, with consumers—particularly those under 55—favoring products that offer functional benefits, clean ingredients, and high protein.

Price sensitivity. As food prices remain high, grocers are focusing on value-driven messaging to address consumer concerns about rising costs. Strategies include promoting private-label products, offering holiday deals, and enhancing in-store signage to emphasize affordability. For instance, Stop & Shop has introduced a budget-friendly private-label coffee line, while German discount chain Penny showcases its products with bold price-focused packaging to highlight affordability.

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