According to recent data, there is a high level of concern among shoppers regarding rising food prices, with 91% expressing worry. In light of this, seven in 10 shoppers (70%) are actively seeking ways to reduce the cost of their weekly groceries, which is the highest percentage recorded this year.
For value-seeking consumers, one common strategy is to remove certain items at the checkout to avoid exceeding their budget. In fact, 13% of British shoppers resort to this measure. Additionally, a significant portion (35%) are opting to purchase items in bulk, as they are usually more cost-effective in the long run. Furthermore, four in 10 individuals (41%) have adopted the practice of shopping at multiple stores to take advantage of various deals and discounts.
It is worth noting that concerns surrounding food prices and the rising cost of living are also impacting economic confidence. Only 21% of shoppers report feeling confident in the strength of the UK economy, representing a decrease of 2% in July compared to the previous month.
In terms of product affordability, an increasing number of consumers (73% in July compared to 70% in June) have noticed instances of ‘shrinkflation’ — a phenomenon where product sizes are reduced while prices remain the same or increase. Specifically, chocolate (56%), crisps (49%), and packets of biscuits (46%) are amongst the most frequently cited products affected by this trend. Consequently, 21% of shoppers, who have noticed these signs, are now switching to brands that have not altered the size of their products.
Moreover, approximately one in five Brits (22%) have observed a similar trend, termed ‘drinkflation’, in the alcoholic beverages they purchase. This refers to cases where drinks such as beers, spirits, and tinned cocktails have a lower alcohol content but are still priced the same or higher than before. One possible explanation for this is that manufacturers adjusted their products ahead of the recent changes to alcohol duty, introduced on 1 August, which imposed taxes based on alcohol strength rather than type.
Esme Harwood, director at Barclays, commented on the situation, stating, “This could be due to manufacturers changing their products ahead of the recent changes to alcohol duty introduced on 1 August, meaning that alcoholic drinks are now taxed according to strength instead of type.”
