The impact of rising prices for UK consumers

13th June 2019

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13th June 2019

UK consumers feeling the pinch when it comes to food and beverage shopping
UK consumers are feeling the effect of rising food and drink prices, FMCG Gurus research in 2019
shows. A total of 81% of consumers feel that food and drink prices have risen in the last twelve
months. Of these eight in ten consumers, a total of 16% say that they believe prices have risen by 8%
of more. Milk is the product category where consumers are most likely to believe that prices have
risen. It is worth noting that when it comes to perceptions around rising prices, only half (54%) say
that they actively monitor changing prices on a week-by-week basis

shopping 2

This is something that is changing the way that consumers shop, with 52% saying that they make
alterations to their shopping habits when they feel prices are rising. Whilst consumers are most
likely to say that they make an extra effort to get better value for money, 30% of consumers who say
they make changes say that they switch to alternative retailers. Additionally, 26% say that they cut
back on premium items. When it comes to cutting back spending on items in order to make money go
further, impulse categories such as chocolate, potato chips and sugar confectionery are the areas
where consumers are most likely to try and reduce spend. As consumers continue to struggle with
everyday finances, retailer and brand loyalty is something that will continue to erode in the UK. That
means product traits such as heritage are no longer enough to maintain shopper footfall or brand
loyalty. Instead, retailers and brands need to ensure that they fully understand consumer needs and
wants to maintain shoppers. Additionally, it is also crucial that consumers do not deem
supermarkets to be unnecessarily hiking prices for profit maximisation purposes.

Irrespective of whether it is genuine food inflation or consumers simply struggling with bills because
of overspending, perceptions around rising grocery prices will continue to shape shopping habits.

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