The CEO of Big 4 grocer Tesco, Ken Murphy, has warned that customers will spend less this Christmas as a result of the ongoing cost-of-living crisis.
In an interview with the BBC the CEO of the supermarket giant said “times of turbulence and times of change” and people were worried about the “affordability of life today”, resulting in people “inevitably spending less”.
Murphy also revealed households are switching from buying fresh food to cheaper frozen alternatives as a result of the cost of living crisis.
This has resulted in Tesco reporting a 200% increase in customers buying frozen turkey’s compared with the same period in 2019, pre-pandemic.
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He attributes the rise to the product being cheaper and customers are “guaranteed” to have it on Christmas Day, providing “security”, as customers look to “spread the cost of Christmas” this year by starting their festive shop earlier than usual.
Searches for frozen food in general on Tesco’s website are up 40% from last year, with the grocer reporting a spike in luxury frozen desserts in time for Christmas Day.
However, Murphy revealed more customers are using barcode scanners more when shopping to avoid being “embarrassed” at the tills.
This comes as shoppers begin to “manage their budgets much more tightly” and opt for cheaper alternatives and own-brand products.
The Tesco boss said the hand-held barcode scanners allowed shoppers to “keep to a specific budget” by being able to keep an eye on the running total, and sticking to budget, without “being worried about being embarrassed at the till” if it turned out they went over budget and could not afford the total bill.
Last month, Tesco announced it was rebranding its “reduced to clear” section allowing better visibility for customers looking to save money on items.
As rising food bills push inflation to the 41-year high, the supermarket giant is overhauling its yellow sticker bay’s to make discount food more visible to customers.
