UK consumers are increasingly looking for the best offers amid the cost-of-living crisis as 39% have switched retailers in the last three months.
Data from McKinsey’s latest UK Consumer Pulse shows that downtrading is becoming more common across household products, snacks and confectionary, with 41% having changed a grocery brand.
This comes as retail sales slowed in October, growing by just over 1% in value year on year, according to the British Retail Consortium.
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Frozen food products have seen the biggest switches to private-label or entry-level-prices brands for half (50%) of consumers.
As 57% have tried a new brand when shopping for groceries and essentials, McKinsey found that Gen Z and Millennials were most likely to switch to different brands or retailers at 54% in comparison to baby boomers at 27%.
For those looking to use more “buy now, pay later” services, this has also increased to 19% compared to 15% in April this year.
“In response to inflation and the squeeze on household income, we see consumers trade down, switch to private label, as well being very open to changing retailers and brands,” McKinsey & Company senior partner, Anita Balchandani said.
“Challenging times such as these, mean that market share is up for grabs for those who are best able to respond to this flight towards value.”
