People are making tough choices at the supermarket to keep costs down.
A new report reveals the average weekly spend per household is now $240 – an increase of only $2 from 2023.
To cut costs, 31% of are buying less groceries, 48% are downgrading on brands, and 30% are looking for specials.
Head of Sustainable Business Development at Rabobank, Blake Holgate told Mike Hosking the results are unsurprising, as wage inflation has not increased at the same rate as food inflation.
He says people have had to make cuts or choices, and that’s what they’re seeing come through in these results.
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Speaker 1 (00:00):
Fascinating insight into this food shopping of our So we
spend an average already for this, we spend an average
two hundred and forty dollars a week per household. Now
what does that mean, Well, it's only two dollars more
then we spent two years ago. So think about food
inflation and think about that number. Thirty one percent of
US aren't buying as many groceries, forty eight percent of
downgrading on brands, thirty percent of us look for specials now.
Blake Holgate is Rather Banks head of Sustainable Business Development
(00:21):
as well as Blake.
Speaker 2 (00:22):
Morning Morning, Mike.
Speaker 1 (00:24):
How robust are these numbers? I mean, are you confident
these are rock solid? You know this is the reality
of things or just perceptions.
Speaker 2 (00:31):
Look, it's a survey where we ask their participants their perception.
A lot This meanding mic, so it is perception. But
I will highlight that this is a regular survey that
we run and the methodology has remained constant over that time.
So it's a relative change that we can see through
those numbers.
Speaker 1 (00:49):
Do you are you surprised by the numbers.
Speaker 2 (00:53):
I'm not surprised in the sense that we know people
are wage inflation hasn't hasn't gone up at the same
rate that food food inflation has gone up with so
people have had to make cuts or make choices to
accommodate it. So I think that's effectively what we're seeing
coming through these numbers.
Speaker 1 (01:10):
Because what we know about food inflation is it's gone
up a lot more than two dollars in the last
two years and so and I also know that people
are traveling and they go to Europe over summer and
Fiji in winter. And so we've got this two speed
economy I'm assuming, aren't we or haven't we?
Speaker 2 (01:26):
Yeah? And I mean what we're dealing in here is
an average, right, So this isn't going to show those
two different groups or segments. But what does show across
the Taire economy, across the entire country. People aren't spending
reletively as much on food as they did two years ago.
Speaker 1 (01:44):
Because they've done great. And see the thirty here's what's surprised.
But the thirty percent you look for specials. I would
have thought we all looked for specials, don't we. I
mean you're looking at you wandering down the aisle. Why
are you looking for a special Why would you buy
something more expensively than you can buy cheaper.
Speaker 2 (01:56):
Yeah, I think. I think what the survey's showing is
people are more consciously or actively looking for promos or specials,
and I'm more conscious of it than there were two
years ago.
Speaker 1 (02:07):
Would the supply to you personally and your circumstances, do
you buy fewer groceries, for example.
Speaker 2 (02:15):
I would certainly take all those three boxes around, buying
less groceries, more actively looking for specials, and downgrading brands
and products that I'm spending on.
Speaker 1 (02:26):
And if these figures were robust in terms of it's
not just perception, its actual dollars, then that would show up,
presumably in the bottom line of the supermarkets, and they
would see that they're not actually earning any more money
because people aren't spending any more money, presumably presumably mine.
Speaker 2 (02:40):
I mean, it's hard to look through and exactly the
margins and who's getting squeezed down the line. So some
of the supplies that are feeding into those supermarkets, I'm
sure that's flung right down through the supply chain, so
it's probably not all just landing at the supermarket. I
think would see the effect that flows right down the
supply chain and those supplies that are feeding into the
and what.
Speaker 1 (03:00):
And what is this in your wheelhouse? What's the average household?
How many people in it?
Speaker 2 (03:07):
This was simply done across fifteen hundred respondents. We didn't
get to the specifics of how many were in each household.
It's simply just an average across those.
Speaker 1 (03:17):
Because two forty sounds like not a lot of money
for a family of four, for example. Sounds possibly okay
for one or two people, but not for a family
of four or six or whatever.
Speaker 2 (03:25):
Yeah, and look, and to be honest, we've been running
the survey for about four or five years now and
we're always surprised at how low that number is across
the household. And that's total spend, not just a supermarket.
Speaker 1 (03:37):
That's total spend on all food Oh no, that's You've
given me almost give me a heart attack now, So
you're telling me that's on all foods. So that's KFC
and Machas and everything.
Speaker 2 (03:47):
Yeah, correct, moment.
Speaker 1 (03:47):
Oh my god, I don't know whether to be depressed
or not. Blake, I think I'm depressed. You can't buy
much for two hundred forty dollars, is what I'm telling you.
You would know that I know that, yes and then and.
Speaker 2 (04:01):
Then, as we say again, that's that's why news in
our households are starting to make some of those hard
choices around the effectical decisions.
Speaker 1 (04:07):
Okay, nice to talk to you, appreciate it, Blake holgame,
I was I was going to go. Everyone's at macers
includes Mackers. We haven't even got the pop eyed chicken yet,
for goodness sake.
Speaker 2 (04:20):
For more from the Mic Asking Breakfast, listen live to
news Talks it'd be from six am weekdays, or follow
the podcast on iHeartRadio
Fascinating insight into this food shopping of our So we
spend an average already for this, we spend an average
two hundred and forty dollars a week per household. Now
what does that mean, Well, it's only two dollars more
then we spent two years ago. So think about food
inflation and think about that number. Thirty one percent of
US aren't buying as many groceries, forty eight percent of
downgrading on brands, thirty percent of us look for specials now.
Blake Holgate is Rather Banks head of Sustainable Business Development
(00:21):
as well as Blake.
Speaker 2 (00:22):
Morning Morning, Mike.
Speaker 1 (00:24):
How robust are these numbers? I mean, are you confident
these are rock solid? You know this is the reality
of things or just perceptions.
Speaker 2 (00:31):
Look, it's a survey where we ask their participants their perception.
A lot This meanding mic, so it is perception. But
I will highlight that this is a regular survey that
we run and the methodology has remained constant over that time.
So it's a relative change that we can see through
those numbers.
Speaker 1 (00:49):
Do you are you surprised by the numbers.
Speaker 2 (00:53):
I'm not surprised in the sense that we know people
are wage inflation hasn't hasn't gone up at the same
rate that food food inflation has gone up with so
people have had to make cuts or make choices to
accommodate it. So I think that's effectively what we're seeing
coming through these numbers.
Speaker 1 (01:10):
Because what we know about food inflation is it's gone
up a lot more than two dollars in the last
two years and so and I also know that people
are traveling and they go to Europe over summer and
Fiji in winter. And so we've got this two speed
economy I'm assuming, aren't we or haven't we?
Speaker 2 (01:26):
Yeah? And I mean what we're dealing in here is
an average, right, So this isn't going to show those
two different groups or segments. But what does show across
the Taire economy, across the entire country. People aren't spending
reletively as much on food as they did two years ago.
Speaker 1 (01:44):
Because they've done great. And see the thirty here's what's surprised.
But the thirty percent you look for specials. I would
have thought we all looked for specials, don't we. I
mean you're looking at you wandering down the aisle. Why
are you looking for a special Why would you buy
something more expensively than you can buy cheaper.
Speaker 2 (01:56):
Yeah, I think. I think what the survey's showing is
people are more consciously or actively looking for promos or specials,
and I'm more conscious of it than there were two
years ago.
Speaker 1 (02:07):
Would the supply to you personally and your circumstances, do
you buy fewer groceries, for example.
Speaker 2 (02:15):
I would certainly take all those three boxes around, buying
less groceries, more actively looking for specials, and downgrading brands
and products that I'm spending on.
Speaker 1 (02:26):
And if these figures were robust in terms of it's
not just perception, its actual dollars, then that would show up,
presumably in the bottom line of the supermarkets, and they
would see that they're not actually earning any more money
because people aren't spending any more money, presumably presumably mine.
Speaker 2 (02:40):
I mean, it's hard to look through and exactly the
margins and who's getting squeezed down the line. So some
of the supplies that are feeding into those supermarkets, I'm
sure that's flung right down through the supply chain, so
it's probably not all just landing at the supermarket. I
think would see the effect that flows right down the
supply chain and those supplies that are feeding into the
and what.
Speaker 1 (03:00):
And what is this in your wheelhouse? What's the average household?
How many people in it?
Speaker 2 (03:07):
This was simply done across fifteen hundred respondents. We didn't
get to the specifics of how many were in each household.
It's simply just an average across those.
Speaker 1 (03:17):
Because two forty sounds like not a lot of money
for a family of four, for example. Sounds possibly okay
for one or two people, but not for a family
of four or six or whatever.
Speaker 2 (03:25):
Yeah, and look, and to be honest, we've been running
the survey for about four or five years now and
we're always surprised at how low that number is across
the household. And that's total spend, not just a supermarket.
Speaker 1 (03:37):
That's total spend on all food Oh no, that's You've
given me almost give me a heart attack now, So
you're telling me that's on all foods. So that's KFC
and Machas and everything.
Speaker 2 (03:47):
Yeah, correct, moment.
Speaker 1 (03:47):
Oh my god, I don't know whether to be depressed
or not. Blake, I think I'm depressed. You can't buy
much for two hundred forty dollars, is what I'm telling you.
You would know that I know that, yes and then and.
Speaker 2 (04:01):
Then, as we say again, that's that's why news in
our households are starting to make some of those hard
choices around the effectical decisions.
Speaker 1 (04:07):
Okay, nice to talk to you, appreciate it, Blake holgame,
I was I was going to go. Everyone's at macers
includes Mackers. We haven't even got the pop eyed chicken yet,
for goodness sake.
Speaker 2 (04:20):
For more from the Mic Asking Breakfast, listen live to
news Talks it'd be from six am weekdays, or follow
the podcast on iHeartRadio
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