Disconnect Between Shoppers & Supermarkets

Disconnect Between Shoppers & Supermarkets

AUSTRALIA | Consumers in Australia are becoming more deliberate about what goes into the trolley, but supermarket promotions are still steering many purchases in the opposite direction.

That tension matters because promotions do more than shift volume. They shape shopping habits, influence category growth and increasingly affect how consumers judge retailers on value and trust.

New research commissioned by Shopfully Australia suggests there is now a widening disconnect between what shoppers say they want and what they believe supermarkets are pushing hardest.

The survey, conducted by YouGov, found 78 percent of Australians had gone grocery shopping intending to buy healthier food, only to end up purchasing something less nutritious because it was on special.

More than half of respondents also believed supermarket promotions were primarily focused on processed foods such as snacks, soft drinks and baked goods.

That should not be dismissed as simply a consumer health debate. For supermarkets and FMCG suppliers, it points to broader issues around how promotions are used, which categories receive visibility, and whether current promotional strategies still align with changing shopper expectations.

Price remains the dominant driver in grocery. Few retailers would argue otherwise in the current operating environment. But there is growing evidence that shoppers are no longer viewing value and health as separate decisions. They increasingly expect both at the same time.

That creates a more complicated challenge for category teams. Traditional high-low promotional cycles continue to work well in driving impulse purchases and clearing volume, particularly in highly competitive packaged grocery categories. Processed foods are often easier to discount, easier to merchandise at scale and supported by larger trade investment budgets.

Fresh categories operate differently. Margin structures are tighter, waste risks are higher, and pricing can fluctuate rapidly with supply conditions. Running deep promotional activity on healthier products is operationally harder than discounting packaged snacks or carbonated drinks.

Yet shoppers appear to be noticing the imbalance more than they once did.

According to the research, 83 percent of Australians want to see more promotions on healthier products, including fruit, vegetables and organic foods. More than half strongly agreed with that position.

That level of consensus is commercially significant because it shifts the conversation from niche wellness positioning to mainstream expectations. Consumers are effectively signalling that healthier products should participate more aggressively in value messaging, not sit outside it.

There is also a planning element emerging here that retailers cannot ignore.

Shopping decisions are increasingly being made before consumers enter the store. Digital catalogues, apps, retail media networks and personalised offers are shaping the shopping list earlier in the process. That means promotional influence now starts well before the aisle.

For retailers, that creates both opportunity and risk.

The opportunity lies in using digital discovery and retail media more strategically to support healthier meal planning, fresh bundles, and value-led basket building. Retailers that can make healthier choices feel financially achievable are likely to strengthen trust with increasingly cost-conscious shoppers.

The risk is that shoppers begin associating supermarket value messaging too heavily with ultra-processed categories. That may still drive short-term promotional uplift, but it can weaken broader brand positioning over time, particularly as public conversations about food affordability and nutrition intensify.

There is another layer to this as well. Suppliers are watching closely where promotional investment is being directed and which categories are receiving the strongest visibility support. As retail media networks continue expanding, healthier categories may increasingly push for stronger placement opportunities and more integrated promotional support across digital and physical channels.

This is unlikely to become a simple “healthy versus unhealthy” retail debate. Grocery retailing is more commercially complex than that. Shoppers continue to buy indulgence categories, convenience remains important and highly processed products still deliver strong rates of sale.

But the research suggests supermarkets may be entering a phase in which their promotional strategies come under greater scrutiny.

Consumers are no longer only asking whether products are affordable. Increasingly, they are asking what retailers are choosing to make affordable.

That distinction matters because promotions influence far more than weekly sales spikes. Over time, they shape shopping behaviour, category perception and ultimately retailer trust. In a market where consumers are becoming more intentional with every dollar spent, that pressure is unlikely to ease anytime soon.

More insights here