Shares of food spending at supermarkets and warehouse club stores increase as income rises

Shares of food spending at supermarkets and warehouse club stores increase as income rises

The U.S. food retailing sector offers a variety of store formats for purchasing at-home foods and beverages. A recent ERS analysis of 2008-12 data found that some formats are more popular with lower or higher income consumers than others. The study found that as income rose, households spent a larger share of their at-home food expenditures at supermarkets and warehouse club stores. Supermarkets accounted for 65.4 percent of food expenditures for consumers with annual incomes below $12,000 compared with 70.8 percent for consumers with incomes of $100,000 and above. Warehouse club stores, with membership fees and large package sizes, accounted for 10.2 percent of food spending for the highest income group, but only 3 percent of expenditures for the lowest income group. Supercenters, which sell a wide range of products and have a full supermarket, accounted for 18.9 percent of the lowest income group’s food expenditures, compared with 11.2 percent for the highest income group. Convenience and dollar stores—small segments of at-home food spending—also accounted for a larger share of food expenditures by lower income consumers. This chart appears in the ERS report, Store Formats and Patterns in Household Grocery Purchases, released March 22, 2017.


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