From toothpaste to cereal, big brands count on consumers buying the same products every time they shop. But lately, that loyalty is starting to weaken, especially at the grocery store.
Prices for staples like coffee and beef aren't just creeping up — they're way higher than headline inflation.
"And that causes people to have this very reflexive knee-jerk reaction of saying, I either need to cut back my spending and buying of this specific item or walk away entirely and look for a cheaper alternative," said Wiley Jones, co-founder and CEO of the software company DOSS.
Where loyalty breaks
The numbers back it up. Research from DOSS shows 60% of people ditched a brand they were loyal to this year because of price hikes. Even more telling, 70% say they're less loyal to brands than last year.
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The breaking point? A price jump of 16%.
When shoppers do make the switch, groceries are the first to go with 76% dropping a brand they were previously loyal to, followed by:
- Personal care products (41%)
- Household goods (39%)
- Dining and takeout (39%)
- Clothing and apparel (29%)
- Subscription services (27%)
About half of shoppers are swapping more expensive brands for generics, cheaper brand names, or private labels and store brands that get the job done.
"Do I really care if I'm getting the really cool olive oil brand?" Jones said. "Or is it okay for me to buy the one that my grocery store carries that is the one that they offer themselves and it'll be 30% or 40% cheaper?"
Changing shopping habits isn't a loss for every brand. Traditional supermarkets and mass retailers have lost the most shoppers. But DOSS says discount chains like Aldi, dollar stores, and warehouse clubs have come out winners — gaining the most shoppers this year.
AI's influence on brand loyalty
Price isn't the only threat to brand loyalty. Oliver Wright, senior managing director of industry and enterprise for consumer goods and retail at Accenture, says AI is starting to nudge people away from their favorites.
In a recent survey, Accenture found over a third of AI users would let a digital agent choose a better or different brand for them.
"For that group, 37% of them are now saying, I'm willing to move away from the brand that I've historically used if the tool's coming back and giving me a logic for why I should do that. And that is clearly going to impact brand loyalty in a very significant way," Wright said.
Recommendations from AI agents factor in reviews, ratings, return rates, a customer's shopper history, as well as price.
Brand loyalty, it seems, isn't just dying from sticker shock. It's being reprogrammed.
