In this edition of the Glossy+ Research Briefing, we unpack survey results from Bazaarvoice’s Shopper Preference Report which found that consumers are turning to strategic shopping tactics, like purchasing store brands and consulting online reviews, to stretch their shopping budgets.
Value pricing and authentic reviews drive shoppers now more than ever
A Shopper Preference Report from Bazaarvoice found that consumers who are worried about rising costs and inflation are using strategic money-saving measures to stretch their tighter budgets. Over half of the 8,000 global consumers surveyed by Bazaarvoice have permanently switched to store brands (57% of survey respondents) or to cheaper brands(54% of respondents). Nearly half of respondents (45%) said they will delay a non-essential purchase based on cost, showing shoppers’ willingness to walk away from a purchase if it’s not the right price or value.
Retailers are responding to consumers’ strong preferences for store and value brands by stocking shelves with more of these types of products. According to StoreBrands.com, Costco, Sam’s Club and BJ’s Wholesale — important destinations for budget-conscious shoppers — have a broader assortment of private label brands on shelf today.
Club stores have seen greater growth in sales of their private label brands than other product categories recently as well. According to StoreBrands.com, private label brands at Costco, Sam’s Club and BJ’s Wholesale accounted for at least 30% of fourth-quarter 2024 sales.
Many shoppers are turning to private label brands not only for their lower price points, but also because some private label brands have a reputation for providing high-quality products. In fact, store brands aren’t necessarily the cheapest options on shelves. Costco’s Kirkland Signature organic orange juice is 24 cents more expensive than Simply Orange’s orange juice, and it’s 20 cents more than Tropicana’s juice. Its ranking as one of the “Best Tasting” juices in stores, according to StoreBrands.com, and likely helps it justify a higher price point, according to Glossy’s analysis.
“Costco is not focused on how cheap they can sell a product,” said Jim Griffin, president of Daymon North America, an ad agency that works with private-label brands. “Quality is vital, and they, along with all the clubs, have member data that shows what items are repeat purchases and which are not. This allows them to investigate why an item isn’t selling.”
