Pandemic Gives Grocers Opportunity to Rethink Price Points

Changes to consumer shopping patterns spurred by the COVID-19 pandemic should prompt grocery store owners to rethink their approach to using promotions to lure and retain customers, according to a new report from management consulting firm Bain & Company.

The report, authored by Bain & Co. Chicago partners Stephen Mewborn and Stephen Caine, Atlanta partner Sandeep Heda and London-based Expert Vice President Sumner Makin, claims that grocers have traditionally had only a limited understanding of which promotions drive the highest return on investment and which break-even or lead to losses. The report says that grocers should take advantage of the “once-in-a-generation opportunity” presented by the pandemic to eliminate poorly performing promotions and focus on items that consumers really care about.