Sensitivity over pricing and promotions have soared as consumers continue to deal with the cost-of-living squeeze, reveals a new study, stating that most shoppers are now much more likely to compare prices in order to keep food bills down.
A research of over 1,000 shoppers by Retail Insight showed that now two thirds (65 percent) have become more price conscious since the start of the pandemic when shopping for groceries, rising to three quarters (74 percent) of 18–24-year-olds.
Meanwhile, rising inflation has caused a further 69 percent to become more budget conscious as the cost-of-living crisis has escalated, rising to 73 percent of those aged 25-34 years old.
With over two thirds (66 percent) of the UK shoppers polled were found trying to reduce their food bills to lessen their cost-of-living, a further six in ten (60 percent) admitted to actively seeking out promotions and discounts when shopping for groceries.
Meanwhile 64 percent say they are now much more likely to compare prices at the shelf-edge in order to keep food bills down.
UK shoppers’ heightened sensitivity to prices comes as the cost of food, fuel and energy continue to rise sharply. While inflation is already at a 30-year-high mark and is expected to pass 8 percent this autumn, industry leaders, including the Co-op chief, have warned that prices will continue to rise for some time.
And this pricing and promotions sensitivity is causing customers’ loyalty – both to the brands and the supermarkets they shop with – to come under threat. Over half (52 percent) of UK consumers say they had switched from branded goods to own-brand lines when shopping for food in a bid to keep their grocery bills down while two fifths have even switched supermarkets in an attempt to battle rising food prices
Paul Boyle, CEO of Retail Insight, commented: “By using data to pinpoint compliance issues around promotions, retailers can use these insights to quickly and effectively address and optimise pricing and discounting, to make sure promotions pay – both for the retailer and for the shopper.”
