CONSUMER BEHAVIOR & TRENDS

Smart Balance’s 2022 reformulation reduced vegetable oils from 64% to 39%. Mouse Print, Morning Brew

Brands facing inflation and supply chain fluctuations have alternatives to simply raising prices. One, shrinkflation, is when brands shrink the size of the product, often imperceptibly, while keeping the price the same. Another, skimpflation, is when brands reduce product quality, often subtly reformulating products with cheaper ingredients or materials.

Consumers don’t tend to get out their pom-poms for either: Among consumers who noticed a product had been shrinkflated, 44.3% switched brands, while among those who noticed a product had been skimpflated, 54.1% switched brands, according to a 2024 survey by consumer insights platform AYTM.

In 2022, Conagra faced a backlash after consumers noticed Smart Balance’s buttery spread had reduced its vegetable oil content from 64% to 39% and that water had gone from the second ingredient to the first (and most plentiful). Conagra responded by returning to the original recipe.

In a paper published online in the Journal of Consumer Research in July, Ioannis Evangelidis, associate professor of marketing at Esade Business School in Barcelona, detailed 10 studies he conducted with consumers. The studies found that when consumers were told how companies had responded to rising costs, they viewed skimpflation as a more unfair approach than shrinkflation, and simply raising prices as the least unfair of the three.

When it came to purchase intent, consumers were least willing to buy a skimpflated product; they were about equally willing to buy products whose prices had risen or that had been shrinkflated. To learn more about the research, we asked Evangelidis about his findings and their implications.

Keep reading here.—AAN

      

Sponsored By The Ibotta Performance Network

Word on the street is, shoppers are using delivery apps more and more to simplify and speed up their grocery-shopping process.

So what does that mean for you? Ask Ibotta. They took a look at these changes in consumer shopping habits and have a few insights for you, if you’re looking for new ways to reach those customers.

Here are some of the biggest changes Ibotta found:

• Digital grocery platforms are optimized for convenience and habit, with features like saved baskets and “buy again” buttons.
• Consumers remain open to switching products when presented with compelling promotions.
• Cash-back offers and promotions are essential for winning on delivery platforms.

Meet your customers where they are—on mobile.

STORES

Getty Images

Consumers will be headed back to stores this holiday season, as we’ve previously reported. Now, Pinterest’s tvScientific has released its 2026 holiday and seasonal shopping trends report, which offers more insight into the upcoming season.

The leading understanding among retailers and marketers seems to be that the prep for the holidays needs to start early; 62% of marketers, in fact, said that they were launching their holiday campaigns earlier because of increased pressure to prove revenue and ROAs.

Black Friday and Cyber Monday also no longer mark the official start of holiday shopping. Just 15% of the 600 consumers surveyed hold off on gift purchases until the promotional weekend, while 33% start researching gifts before October, and 21% are already making purchases by then.

Meanwhile, 76% of the 487 US marketers surveyed, believe it is “very critical” to reach shoppers before they start looking for or comparing products.

Keep reading here.—JS

      

MARKETING

Morning Brew Inc., Photos: @westworldhbo/Instagram, @goodwipes/Instagram, Chili’s

Who needs a dedicated brick-and-mortar location when consumers can show up in droves to a temporary brand pop-up?

From product giveaways to immersive, world-building experiences, pop-ups are one way marketing departments can build brand awareness, drive social media conversation, and connect with audiences. To pull one off, experts like Marc Simons, co-founder of agency Giant Spoon, emphasized one important element: emotion.

“We want someone to feel something as they’re going through these experiences,” Simons told us.

Building emotion and audience connection begins far before a brand sets up shop in a pop-up location, and can continue long after its doors close. But it’s not the only key element to a successful event. We talked to agencies and brands about how they build the pop-ups of a consumer’s dreams, and what makes a brand experience or event successful.

Keep reading here on Marketing Brew.—JN

      

Sponsored By Fastbreak AI

Gen Alpha skips ads. Fastbreak AI’s latest guide explains why youth sports is the sponsorship channel ripe with opportunity and how to reach it. It covers the 12 rules behind the shift, how youth sports stack up against social ads and pro sponsorship, and more. Download it for free here.

swapping skus

Today’s top retail reads.

Getting personal: Domino’s is introducing a rectangular personal pie in a bid to revive growth amid a broader pullback in pizza spending. (the Wall Street Journal)

No bid: GameStop is weighing whether to withdraw its $56 billion bid for eBay and instead propose a joint venture that could help bolster both companies’ profits in the collectibles and trading card markets. (Bloomberg)

Spoon made of sugar: A Massachusetts lab has developed an alternative to microplastic-shedding utensils using fermented sugar. (the Associated Press)

^{*A message from our sponsor.}

Jobs

Tired of one-size-fits-all job boards? CollabWORK highlights roles that reflect your interests and goals—delivered through communities like Retail Brew. Click here to explore the full job board.