Yahoo Finance Majority of UK consumers see rise in cost of weekly grocery shop
The majority of UK consumers have claimed that the cost of their normal weekly grocery shop has risen in the last six months as the country grapples with a cost of living squeeze.
New data from NielsenIQ shows 53% of Brits saw an increase in the cost of their weekly grocery basket, rising to 70% of the consumers identified as "strugglers".
NielsenIQ's Economic Divide study has identified five new consumer groups, and how this will shape shopping behaviours in the year ahead as inflation hits a 30-year high.
The groups are based on the pandemic’s economic impact on consumers’ financial security and associated spending patterns, each shaped by their circumstances and approach to life post-COVID.
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The consumer groups were:
● Strugglers: Of the respondents, 19% were identified as "strugglers". These consumers experienced job or income loss and continue to do so.
● Reboumders: Some22% make up "rebounders", shoppers who lost a job or income during COVID, but are back on track.
● Unchanged: For 16% of Brits there was no impact on their household's financial security and continued to spend as they normally did
● Cautious: This accounted for 35%. These consumers did not see an impact on their household’s financial security during COVID-19, but are still cautious with spending habits
● Unchanged: For 16% of Brits there was no impact on their household's financial security and continued to spend as they normally did
● Thrivers: Making up 8% of consumers surveyed, they saved money during COVID-19 and feel more financially secure now than they did prior to the pandemic.
Although "thrivers" were said to be the most financially secure, 62% said they noticed a climb in grocery spend, despite purchasing the same items.
In terms of managing grocery spend amid rising costs, 16% of UK consumers have stopped buying certain products completely. The biggest consumer group to make such radical changes was the "strugglers" (21%), slightly below the global total for this group (23%).
According to NielsenIQ, 21% of all shoppers select the lowest priced product irrespective of brand, with this figure climbing to 27% for "strugglers". "Thrivers" are the least likely to make this choice, with 13% choosing to stick to their preferred brand irrespective of price.
In line with the global total (69%), in-store grocery shopping at a hypermarket or supermarket was the preferred method for 61% of UK consumers, rising to 66% across the "cautious", "unchanged" and "thriver" groups.
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Ordering online was most popular among the "strugglers", with a combined total of 84% either ordering groceries for delivery or pick-up at either a supermarket, local traditional store or from Amazon (AMZN).
That was above the global total (83%) as well as the overall UK total figure (66%).
Rachel White, managing director, NielsenIQ UK and Ireland, said: "The last two years have seen an unprecedented level of uncertainty for consumers and the war in the Ukraine has only exacerbated sentiment about rising cost of living and inflation."
She called on retailers and manufacturers to "forge new strategies" to adapt to a "divided consumer landscape".
