The UK grocery market is rapidly becoming a two-speed economy, with shoppers splitting into two distinct groups of price-pressured majority increasingly reliant on discount formats, and a smaller but high-value affluent minority driving growth in premium retail, according to new UK Grocery Shopper Research from Pricer.
The Pricer research, based on a survey of 1,000 UK grocery shoppers, shows that cost of living pressures have made price vigilance mainstream. Nearly eight in ten shoppers (78%) say they are more price conscious than a year ago, while 74% actively seek discounts and promotions.
Almost half (47%) say they have switched from their usual supermarket to a discounter, with switching heavily concentrated among younger and lower-income shoppers.
At the same time, the study reveals a sharply contrasting trend at the top end of the market. Premium grocery formats are seeing strong growth among affluent households, with 91% of shoppers earning £125k+ reporting that they now shop more at premium or upmarket supermarkets.
These shoppers are significantly less discount driven, but far more demanding when it comes to quality, availability, sustainability and digital integration in-store.
“This is no longer a single grocery market moving in one direction,” said Finn Wikander. “Retailers are now serving two very different shopper mindsets at the same time, one focused on affordability and survival, the other on quality, transparency and convenience.”
Discount reliance dominates the price-pressured majority, and younger shoppers and lower-income households are leading the shift. More than half of Gen Z shoppers (56%) have switched to discounters, while 36% of all shoppers say they now buy mostly discounted products.
Trading down is widespread; 56% have switched from branded to own-label products, rising to 72% among the lowest income groups.
Store-switching has become the norm rather than the exception. Nearly two-thirds of shoppers (63%) now shop at multiple grocery stores to secure better prices, and 57% split their shop between traditional supermarkets and discounters.
Younger shoppers are also more likely to shop later in the day to capture markdowns, reinforcing how price sensitivity is shaping behaviour at the shelf.
In contrast, affluent households are reshaping the premium end of the market. High-income shoppers are far more likely to prioritise availability, rich product information and sustainability credentials.
Almost half (45%) of high earners want sustainability and sourcing information displayed at the shelf, rising to nearly nine in ten among some upper-income segments.
Affluent shoppers are also the most frustrated by operational failings. They report higher rates of stockouts, are more likely to abandon baskets when products are unavailable and are more sensitive to inconsistencies between online and in-store information. For these shoppers, digital tools are not a novelty but an expectation, particularly when they improve transparency, speed and confidence at the point of purchase.
Technology acceptance hinges on tangible benefits. Across both segments, attitudes to technology are mainly about practicality. Shoppers welcome digital tools when they deliver clear benefits such as lower prices, fuller shelves and faster checkouts, but resist technology that feels confusing or positioned as a replacement for staff.
The research highlights strong interest in shelf-edge technologies that improve execution. The number one requested improvement to the shelf is technology that alerts staff when products are out of stock, cited by 46% of shoppers.
More than half (53%) say they want richer product information at the shelf, and 52% want real-time price comparisons, rising to over 80% among the highest income groups.
Electronic shelf labels and digital shelf features appeal most strongly to younger and affluent shoppers, while older cohorts remain more focused on staffing levels, queues and reliability. This generational and income-based divide reinforces the two-speed nature of the market.
Wikander continued, “The findings underline a growing strategic challenge for grocery retailers. Protecting affordability for the price-pressured majority is essential to maintaining volume and trust, while meeting the expectations of affluent shoppers is increasingly critical to margin, loyalty and growth.”
Overall, the research paints a picture of a grocery sector under pressure to do two things at once; deliver relentless value and consistency for shoppers watching every pound, while simultaneously offering premium experiences defined by quality, transparency, sustainability and digital sophistication.