‘One in three shoppers gravitating towards own-brand’ as inflation bites

One in three UK consumers are already buying more own-brand or value products during the cost-of-living crisis, finds research from KPMG.

The survey of 3000 UK consumers was carried out in early September and found that essential household costs, such as food, energy, mortgage or rent, have risen by an average of £145.50 per month compared to when 2022 began. In reaction to these increased essential costs, just over a quarter (26 per cent) say they are buying less non-essential items than in 2021.

As well as swapping to own-brands, one in four say they are switching brands, with a similar proportion reporting that they are now shopping at cheaper retailers. Eating out is the area where most consumers (59 per cent) say they are cutting down on. One in five of those surveyed also report swapping eating out for premium home cooked meals.

Clothing (54 per cent), and takeaways (51 per cent) are the next most common areas of spending reduction. Eating out, clothing, and takeaways have consistently been the areas where most consumers report cutting down on, with polling in April and December 2021 bringing back similar results.

Perhaps surprisingly, a greater amount of the 3000 consumers say that they are feeling more secure (37 per cent) than less secure (22 per cent) in their financial circumstances than they were at the beginning of the year. This represented a reversal from a survey carried out by KPMG in April, when 34 per cent feeling less secure versus 26 per cent feeling more secure.

KPMG’s UK head of consumer markets, retail and leisure Linda Ellett says this increased security may be down to the actions consumers are taking on their own spending.

“It’s clear that consumers are responding where they can – altering how much they buy, what they buy and where they buy it.  Retailers are also responding and will need to continue to be data driven to anticipate and adapt to changes in demand,” she says.