I break out Groceries, Consumables, Goods, and Entertainment (and other things, but these are the categories that might come from a grocery store).
Groceries - food items that are real food, whether purchased at a grocery store or in bulk
Consumables - things that get used up ("consumed") frequently, such as shampoos, TP, dish soap, and so forth (we almost never purchase these at a grocery store)
Goods - clothes, small appliances, and other things that I expect to last a few years
Entertainment - the obvious such as movies, but also alcohol and any snacky-foods that were taken to parties
Right now, I'm entering receipts manually into my spreadsheet, so it is not a big deal to break out one receipt into part Groceries and part Entertainment.
To me, it makes sense to break out food from other consumables to see what it really costs us to eat. If we make more food at home, our restaurant spending should go down correspondingly, but consumables should remain similar.
I don't break out clothes from other goods, as I just don't spend enough on them for them to merit their own category. I doubt that is a common choice.