BOSTON– Groceries are emerging as one of the clearest signals of where financial pressure is reshaping consumer behavior, according to a new report.
While consumer spending continues to move fluidly across digital and physical channels, a new report from PYMNTS Intelligence finds that financial stress is creating a “bifurcation in grocery shopping behavior, particularly in the shift toward online channels.”
“Consumers under high financial stress are six percentage points more likely to purchase groceries online than those under low stress,” PYMNTS Intelligence said. “This pattern does not reflect a general surge in online shopping, but a targeted move toward grocery purchases that offer more visibility into prices, discounts and budgets.”
Groceries Remain an Essential
The report, titled, “The New Checkout: Crimped Consumers Lean Into Online Retail and Digital Wallets,” underscores that grocery spending remains non-negotiable, even as households face rising costs elsewhere, according to PYMNTS.
“Seventeen percent of consumers reported experiencing cash shortfalls for essential expenses in the past 90 days, defining the high financial stress cohort,” PYMNTS said. “That stress is concentrated among younger generations and parents with children, groups that must continue buying groceries regardless of budget pressure.
“Rather than cutting back sharply, stressed households adapt. One way is by consolidating grocery purchases into fewer, higher-value transactions,” the analysis added.
Online and In-Store Behaviors Diverge
Among the findings in the report, according to PYMNTS:
- Consumers under high financial stress spent an average of $109 on their most recent grocery purchase, compared to $95 among low-stress shoppers. “This result suggests fewer trips and more deliberate planning, not looser spending discipline.
- Digital channels amplify the behavior. The report found financially stressed shoppers appear to favor online grocery purchases for the control they offer, including easier price comparisons and access to promotions. In-store grocery shopping still plays a role, but the growth momentum is clearly digital for this group, PYMNTS said.
- High financial stress households are far more likely to use digital wallets. They are more than twice as likely as low-stress individuals to have used the payment method for their last grocery purchase at a respective 21% versus 8%.
Platforms Tell a More Nuanced Story
According to PYMNTS, platform behavior diverges sharply by stress level.
“High-stress consumers are 34% less likely to buy from Amazon than low-stress shoppers, while being nearly three times as likely to shop at Target online,” PYMNTS stated. “The data suggest that financially stressed shoppers prioritize perceived value and targeted promotions, while lower-stress households use Amazon more for discretionary grocery and retail items.”
What’s Being Signaled
PYMENTS said in its analysis that for retailers, grocery spending has become a diagnostic tool.
“Financial stress does not eliminate demand, but it does change channels, baskets and merchants,” the company said. “Online grocery shopping, especially among stressed households, reflects a broader shift toward deliberate spending, consolidation and value orientation.”
