Around half of UK consumers are trading down to value alternatives as a result of the ongoing cost-of-living crisis, new research has revealed.
According to the Retail Economics-HyperJar Cost of Living Tracker, consumers are being more price-conscious, evidenced by half of households (46.9%) trading down to value items and almost two in five (38.7%) using voucher codes more often to stretch their spending power.
The research also found, 37.5% of consumers are delaying large purchases and buying essentials in smaller quantities (30.7%) as prices rise faster than earnings.
The report added that nine out of 10 consumers still plan to cut back non-essential spending, despite the energy cap freeze introduced by the government this month.
This comes as 80.4% of people surveyed said they are anxious about their ability to pay for future energy bills, prompting people across the UK to put aside an extra £1.5 billion per month to cope with rising energy costs.
“The government’s announcement has had very little impact on confidence levels as we all continue to adjust our spending patterns to cope with an extraordinary set of challenges,” HyperJar CEO Mat Megens said.
“This nervousness is clear from the longer-term planning behaviour we see among our own customers – from putting money aside for hikes in energy costs to saving up for Christmas and summer holidays now.
Although inflation is a new phenomenon for many of us, the country has been here before and it’s possible to navigate this period with careful planning and some smart, manageable changes in habits.”
