Morrisons and Asda must brace for expected consumer downtrading as the cost of living crisis squeezes household budgets, according to GlobalData.
The leading data and analytics company warned that retailers with younger or less affluent shoppers, such as Morrisons and Asda, will need to brace themselves for a ‘new wave of grocery shopping’.
GlobalData noted that because of price hikes, 23% of UK shoppers are trading down for cheaper products from the same retailer, while 29% are buying less overall.
However, 28% of Brits do not expect any change to their shopping habits in light of rising prices.
“Young people tend to look for cheaper alternatives when money is tight, as they have less money saved up and are often less attached to familiar products,” GlobalData food and grocery analyst Amira Freyer-Elegendy said.
“Comparatively, more than half of 65+ year old’s do not expect a change in shopping habits at all, but at the same time, they often have limited cash at their disposal and more moderate spending habits.”
“Asda and Morrisons have already recognised and addressed these concerns. To retain their shoppers, cultivate loyalty and soothe worries, the retail giants have recently promised to slash prices on essential items by 12-13% in order to cater to shoppers’ tightening budgets.”
Freyer-Elgendy added: “GlobalData’s research shows that women are more likely to take such budgeting measures, with less than two in five (17%) claiming that their shopping habits are unaffected by price rises.
“This is in stark contrast to male respondents, which sees the response more than double to 39%.”