Most Americans Can’t Easily Cover A $400 Emergency. But Grocery Delivery Is Hitting Record Highs.

Nearly two-thirds of American grocery shoppers say they would struggle to pay an unexpected $400 bill, and more than a third have been cutting back on meals because they cannot afford enough food. But even as household budgets come under pressure, grocery delivery is becoming more popular than ever.

A new survey by customer data science company dunnhumby found that 64% of U.S. grocery shoppers would have difficulty covering a $400 emergency expense, up seven percentage points since December. Another 34% said they had skipped meals or reduced portion sizes over the past year for financial reasons, also seven points higher.

Both readings are at the highest levels recorded in the company's latest consumer tracker, which has been monitoring grocery shopping habits since 2022.

The findings, released Wednesday, also revealed something less expected. Despite widespread concern about money, 31% of shoppers said they order groceries for delivery most or all of the time, a six-point increase and the highest reading in the survey's history.

The figures describe different behaviors among the wider group of surveyed shoppers, rather than establishing that financially strained households are paying for delivery services.

The pressure on household finances is not limited to people on low incomes either. Among Americans earning between $50,000 and $100,000 annually, 60% reported difficulty covering a $400 emergency, up 11 points since December. Nearly a third of households in that income group also said they had not had enough to eat, compared with 19% in the previous survey.

Older Americans reported a substantial deterioration too. The share of shoppers aged 65 and above experiencing food insecurity nearly doubled to 17%, while 46% said they would struggle with an unexpected $400 expense.

The highest levels of financial difficulty were recorded among households earning less than $50,000, at 76%. Adults aged 35 to 44 reported the same rate.

"American shoppers are under more financial pressure than at any time since we started tracking them in 2022, and it's building fast," dunnhumby CEO Jamie Samaha said in a statement accompanying the findings.

He added that consumers increasingly want consistently low prices rather than having to search for discounts each time they shop.

Food prices remain a particular source of frustration, although shoppers' perceptions of inflation differ considerably from official government figures.

Respondents estimated that grocery prices had risen 24% over the previous year. The latest Bureau of Labor Statistics figures, however, showed food-at-home prices increased 1.8% in the 12 months through September.

That doesn't mean Americans are imagining higher grocery bills. Slower inflation means prices are rising less quickly, not that they have returned to what consumers paid several years ago. The government's September data also showed considerable differences between products, with fruit and vegetable prices rising 3.7% over the year while dairy prices declined.

The changes in shopping habits are noticeable across different retail formats. Dollar stores have gained customers for four consecutive survey waves, with 45% of respondents saying they shop at one. Convenience stores recorded the largest increase in usage, climbing six points to 29%, while online-only grocery retailers reached 24%.

Traditional supermarkets, used by 77% of shoppers, and specialty food stores were the only two formats to lose ground in the latest survey. Walmart remained the most widely shopped grocery retailer, with 72% of respondents reporting visits.

Consumers are also spending more time looking for cheaper alternatives. The share shopping at retailers offering consistently low prices rose to 63%, while interest in smaller packages and store-brand products has grown.

Loyalty programs, however, are having a harder time keeping customers engaged. Only 48% of shoppers said they identify themselves to earn rewards, the lowest level since July 2022.

Online grocery shopping has been moving in the opposite direction. Alongside the rise in delivery orders, 41% of respondents said they regularly interact with grocery store apps, another survey high. Grocery pickup reached 23%.

Delivery was particularly common among adults aged 35 to 44 and families with children, with 43% of shoppers in both groups reporting frequent use.

The report does not establish whether these consumers are spending more overall or whether delivery has helped them save money. Convenience, access to stores and the ability to compare prices online could all influence how people choose to shop.

Some Americans are even turning to artificial intelligence to manage their grocery budgets.

Dunnhumby found that 22% of shoppers had used AI tools for grocery shopping during the previous month. Among those users, 44% used the technology to compare prices and 40% looked for ways to save money.

Trust in the technology remains limited. Only a quarter of respondents said they mostly or completely trusted AI, while 32% did not trust it at all.

The latest findings come as other research points to differences in how Americans are managing unexpected expenses.

The Federal Reserve's annual household survey, released in May, found that 63% of U.S. adults could cover a hypothetical $400 emergency using cash, savings or a credit card paid off at the next statement. Another 12% said they would be unable to pay the expense by any means.

The Federal Reserve asks a different question and surveys the broader adult population, so its results are not directly comparable with dunnhumby's grocery shopper findings.

Dunnhumby's latest research was based on online interviews conducted in August with 8,500 grocery shoppers across six countries in the Americas, including 2,000 respondents in the United States.

The company found that frequent grocery delivery was most common among families with children and adults aged 35 to 44, with 43% of each group using the service most or all of the time.