Gen Z families enter the mainstream consumer group, grocery retailers urgently need to transform
The AlixPartners report shows that young parents are more inclined to multi-channel shopping, using e-commerce, and purchasing prepared foods, putting traditional grocers at risk of customer attrition.

As young consumers enter the key stage of starting families, the way food is purchased is undergoing profound changes. A report released last week by management consulting firm AlixPartners pointed out that if grocery retailers do not take action, they could lose 15% of loyal customers within the next five years.
The report shows that young parents are more likely than other consumers to spread their grocery spending across multiple channels, use e-commerce more frequently, and prefer prepared foods. These shoppers are also more inclined to believe that everyday prices at their primary shopping channel are higher than at other stores, and they show a lower preference for traditional grocers.
AlixPartners defines "young parents" as consumers under the age of 45 with children under 18 living in the household.
The survey found that nearly half of this group buys prepared foods weekly, compared with about one-fifth of other consumers. Meanwhile, more than 60% of young parents shop for groceries online at least once a week, more than double the rate of other consumers.
AlixPartners said that as Generation Z gradually replaces older consumers as the primary customer base in the grocery industry, grocers that rely on customers concentrating most of their spending at a single retailer may be particularly vulnerable.
The report shows that in 2025, nearly three-quarters of young parents used at least three channels to buy groceries, compared with only 61% of other consumers.
In the Northeast and West regions, 70% of young parents said they make online grocery purchases at least once a week.
The gap in willingness to shop at traditional grocers between young consumers and other consumers is particularly pronounced in the West. Last year, just over two-thirds of young parents in the region had shopped at a traditional grocer, 19 percentage points lower than other consumers. Additionally, only 31% of young parents in the West used a traditional grocer as their primary shopping channel, compared with more than half of other consumers.
The report also shows that young parents in the West place particularly high importance on prepared foods. In 2025, 58% of young parents in the region bought prepared foods weekly, compared with less than a quarter of other consumers.
AlixPartners noted that although traditional grocers face competitive pressure from large retailers and membership warehouse clubs, they are better positioned to capitalize on the prepared food trend.
"The sheer scale of industry giants makes these initiatives far more complex to conceive and execute. Regional retailers can deploy their own labor for production and use central kitchens as they scale, while also regularly updating menus based on local trends, seasonality, customer composition, and other factors," the report states.
The firm also said that grocers are failing to fully leverage membership programs, noting that retailers typically use these programs primarily as data collection tools rather than to build effective relationships with consumers. AlixPartners wrote: "These programs often incentivize purchasing behaviors desired by the grocer and its suppliers, rather than recognizing and rewarding customers for repeat visits driven by specific products or categories."
AlixPartners' survey was based on questionnaires from 1,635 consumers in October 2025, of whom 440 met its definition of "young parents."