Young parents are increasingly splitting grocery trips across multiple channels, a habit that is reshaping how the retail industry operates. A new survey by AlixPartners suggests the grocery sector is at an inflection point, with traditional loyalty models facing mounting pressure from a generation that shops differently than those who came before.
Gen Z Reshaping Grocery Habits
The report indicates grocers could lose up to 15% of their most loyal customers over the coming years due to a generational shift that the pandemic accelerated. Younger shoppers have grown comfortable buying groceries online and exploring venues beyond their local store. The adoption of AI tools may speed this transition along further.
“Grocers have for years relied on backward-looking data to make forward-looking decisions, but we are at an inflection point where the next generation is so different that historical data is becoming ineffective as a predictor of what’s coming next,” the report stated.
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Traditional grocers can still offer something appealing, the report noted, but it cannot be the same approach they have used for decades. The advice was blunt: lead the change now rather than try to catch up later. Gen Alpha, the generation following Gen Z, is expected to complicate matters even more.
How Young Parents Shop Now
The under-45 crowd with children under 18 has developed distinct habits when it comes to groceries. They shop online more frequently, plan their trips with more intention, visit different store formats depending on what they need, buy more prepared foods, and scrutinize everyday prices more carefully than older shoppers do.
Only 13% of young parents and 17% of other shoppers used a single channel in 2025, according to the survey. Even those who stuck to one channel likely visited different stores within it. In 2025, 74% of young parents shopped at least three different channels while 61% of other shoppers did the same.
Big box retailers have captured significant share in some regions. In the Midwest, 72% of young parents bought groceries at big box stores, compared to 58% of other shoppers. The South showed a different pattern, with 48% of young parents shopping big box compared to 59% of others. The Northeast and West showed nearly even splits between young parents and other shoppers at these locations.
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Beyond big box stores and online options, club stores, discount retailers, convenience shops, natural food stores, ethnic-specialty markets, and drugstores are all taking bites out of traditional grocery store revenue.
For many young families, shopping across multiple stores has become the default rather than the exception. What once felt like a hassle is now simply how grocery shopping works. When asked to name their go-to grocery store, a shopper today is just as likely to respond with a clarifying question—”For what?”—as to name a single retailer. Traditional grocers are finding it difficult to grow sales despite deploying every tactic that worked in the past. The modern consumer does not operate on a winner-takes-all philosophy when it comes to where they buy their food.
What Grocers Can Do
AlixPartners recommends that retailers revisit their core assumptions about how stores are run. Categories that do not drive foot traffic do not need loss-leader pricing. Items bought infrequently require only limited selection. And categories that do not set a store apart from competitors do not deserve the same marketing and merchandising budget as higher-priority areas.
“Instead of trying to be everything to everyone, grocers need to focus their energy on the areas where they have the best shot to win,” said Matt Hamory, a managing director at AlixPartners. “They need to become multi-specialists, solid across the board but absolutely compelling in a few disciplines narrow enough to master. Fresh is too broad; prepared meals for young families, for example, meet a clearly defined need for a desirable consumer group.”
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Prepared foods are emerging as a key battleground. The survey found young parents view convenience foods as a replacement for takeout and restaurant dining, while older generations more often see them as a substitute for cooking at home. Grocers should start thinking of themselves as direct competitors to foodservice operators, the report suggested.
Loyalty programs as they currently exist are unlikely to solve the problem. The report pointed out that successful programs in other industries offer substantial benefits—Southwest Airlines’ companion pass was cited as an example—rather than minor discounts on individual items. The suggestion is to offer loyalty members meaningful savings, potentially 20% or 30% off once a month, instead of relying on scattered promotions. Dedicated checkout lanes for members could also help.
The survey covered 1,635 consumers, including 440 who were under 45 with children. The findings paint a picture of a market in flux, where the old rules about winning customer loyalty no longer apply in the same way.
