Thanks to record inflation, price sensitivity at the grocery channel is back. With a vengeance. And all indications suggest it’s only going to get worse.
Grocers, however, have been reluctant to pass on recent manufacturer price increases because they know from experience that when a product consumers want is unavailable — or in this case, too expensive — shoppers will happily switch brands or, worse yet, stores. But grocers can only hold off for so long. What can they do to prevent a devastating drop in volume when prices go up? Lance Goodridge of IRI’s Global Analytics & Insights Solutions practice has a few ideas, outlined in a recent report “Managing Price During Turbulent Times.”