Cost of living: 64% of consumers switch to cheaper brands to save cash

Over two thirds of consumers are switching to cheaper brands, and more than half are ditching brands for supermarket own-label products in a bid to save cash amid the cost-of-living crisis.

According to a survey of more than 4,000 consumers by leading retail app and promotions business Shopmium, 69% are buying less items and being stricter about what they buy, while 55% are switching to lower cost retailers.

UK consumers are making big changes to the way they shop for groceries as inflation causes the price of supermarket food and drink to soar to its highest level in 40 years.

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The survey revealed also that 8 in 10 (77%) of shoppers have already taken action to reduce their grocery spend, with a further 10% planning to cut it down imminently.

Driving these changes are reductions in household income, with two thirds (63%) of people saying they have less disposable income, increasing to 67% for those on lower-than-average income.

Brand loyalty has reduced, as two thirds (64%) say they’ve switched to cheaper brands, and more than half (58%) to supermarket own labels.

Additionally, Shopmium found a quarter (25%) of consumers don’t plan to eat or drink out at all in the run up to Christmas, while 7 in 10 (68%) plan to do so less than once a week.

Instead, there’s a rise in households doing a ‘big night in’ with half (47%) of consumers planning a special occasion at home to replace going out, rising to 61% with 25 – 34 year olds.

“Our survey uncovered very definite changes in grocery shopping habits, as the economic crisis intensifies, and consumers struggle with reductions to disposable income,” head of Shopmium UK, Stuart Sankey said.

He added: “Now more than ever, UK shoppers need the support of brands and to feel they are helping address the dire situation many consumers have been left in.”

Sankey continued saying that ensuring price points are as low as possible and offering discounts on the items that consumers most need, such as treats and snacks for a big night in, “will go some way towards supporting customers in financial hardship,” he said.

“With brand loyalty abandoned and so many consumers switching to cheaper options, grocery brands must take action if they want a place on shopping lists this winter.”

The news comes as the Office for National Statistics found that retail sales continued to fall throughout the autumn as the cost-of-living crisis further impacted consumer spending behaviour.



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