‘Brits cut back on groceries, finding ways to reduce cost of weekly shop’

Brits cut back on groceries and eating out in March but fueled a resurgence in digital subscriptions to catch new seasons of popular TV programs as they opted to stay at home, states a report released today (11).

According to Barclays, spending on groceries increased 7.1 per cent, well below the latest ONS food price inflation rate (18.2 per cent), as 88 per cent of shoppers say they are concerned about the impact of rising food prices on their household finances. More than six in 10 (62 per cent) are finding ways to reduce the cost of their weekly shop, states the report.

Over half (53 per cent) of these value-seeking consumers are cutting down on luxuries or one-off treats for themselves, while a sizeable proportion are planning meals in advance to avoid wasting food, or using vouchers to get money off their grocery bill (both 38 per cent).

Despite rising inflation elsewhere, spend on fuel saw a steep decline of -6.7 per cent, because fuel prices this year are much lower than they were in March 2022, towards the start of the Russian invasion of Ukraine.

Esme Harwood, director at Barclays, said: “The below-inflation rise in grocery spending shows that Brits are still trying their hardest to shave money off their weekly shop, as energy bills continue to rise.

“Cutbacks are also impacting restaurants, with a number of cash-strapped consumers even avoiding social plans that involve meals out.

“Hospitality and leisure businesses will be hoping that the busy bank holiday period provides a boost to counteract consumers’ everyday cost-savings.

“While predictions for the Coronation weekend are lack luster, the results from Mother’s Day are more encouraging, demonstrating that Brits are still taking advantage of one-off moments to go out and celebrate.”

Meanwhile, the industrial strike action which took place in March meant that spending on public transport saw a noticeably smaller year-on-year uplift (14.0 per cent) than in February (22.6 per cent) and January (37.9 per cent).