Inflation’s transformative impact on long-held shopping habits amongst Britons is becoming clearer according to a new research report released today (Tuesday 28th February). Attest, a leading consumer research platform has found that a wide majority – (70%) – of consumers have acquired a taste for supermarkets’ own-label brands and have no intention of reverting to more household (and expensive) names.
Its 2023 UK food & beverage trends report surveyed 1,000 nationally representative British consumers revealing:
● Consumers turn away from big-name brands: The research finds that supermarkets’ own-label brands have benefited from the rising cost of living, with shoppers turning away from more expensive household names. More than 60% of Britons say they are “very likely” to purchase these cheaper alternatives, with a further 30% “somewhat likely”. Less than 3% are now “unlikely” to buy own-label brands.
● Many parts of the shift to own-label are potentially permanent: Digging deeper into the 70% who intend to stick with own-label products, 26% say they will “definitely” carry on buying them, while 44% will “probably” keep them in their shopping trolleys. Only 12% say they wouldn’t stick with these less well-known brands.
Price is now the be-all and end-all for British shoppers
In the age of inflation and a bleak economic outlook, the research also finds that a majority of consumers are solely concerned about value when shopping for groceries.
● Nearly all consumers are bargain hunting, visiting different supermarkets: 92% of Britons admit to bargain hunting when grocery shopping at the moment. So much so that over half (58%) reveal they are visiting multiple, different supermarkets in person to find the best deal, by contrast, 43% check a variety of stores online instead.
● Forget the hi-tech shopping experiences: When asked to select what incentivises them the most to shop at one particular supermarket, lowering prices ranked as the most important factor. Cheaper pricing is 4x more effective than special offers and promotions (ranked second). Meanwhile, fancy in-store technology is ranked as the factor least likely to motivate consumers.
● UK shoppers aren’t afraid to quit specific retailers entirely, due to high prices: In a qualitative question, some shoppers even admit that inflation has caused them to give up shopping at specific supermarkets because of high prices or lack of deals. Most likely to be named were Morrisons, Tesco and Waitrose. In fact, 21% of consumers say they are ditching or have ditched Morrisons specifically.
● Consumers want discounts (and more discounts): Out of six promotion types, discounting the price of a product is what shoppers want the most, closely followed by ‘buy one get one free’ deals. Offering a percentage of extra product free was ranked third, alongside a ‘pre-inflation price freeze’.
● And most will buy a product discounted by 20%: The research also details that discounts don’t need to be huge to incentivise shoppers. When asked for the minimum discount that is persuasive, the top answer was a 20% discount (for 38% of people). A further 22% would buy with a 30% discount, while 20% would be convinced by a discount of 10% or less.
The data also highlights that consumers still believe it’s better to go to a store when searching for the best deals on groceries. Nearly 53% of Britons think in-store shopping is best for bargain hunting, while only 13% favour online.
Brands also often cut their marketing budget when times are tough, but scrimping on advertising could be a false economy. According to the research, 47% of consumers who say they shop around for food and beverage deals rely on adverts to stay informed. Promotional emails and mailings are also effective for reaching bargain hunters (at 36%).
Jeremy King, CEO and Founder of Attest, said of the research: “Faced with new pressures, British shoppers have evolved in behaviour, and have acquired a real taste for supermarkets’ own-label brands. This shift is driven by rapid price rises for all grocery and household products and may be permanent for several important sub-segments. Well-known brands that can’t compete on price are the losers here and face significant challenges.”
“The big-name brands need to provide consumers with new, compelling reasons not to switch to own-label rivals, or in some cases motivate them to come back to big brands.”
“The Attest research also finds that this move away from brand loyalty isn’t just impacting the brands that British consumers are putting into their shopping trolleys. Over half – 58% – are actively bargain hunting in multiple supermarkets to find the best prices. This fragmentation of shopping in pursuit of value, and at the expense of shoppers’ own time, is another new and emerging behaviour. This puts supermarket chains under serious pressure to either offer the best deals that beat other retailers and attract consumers, or to extend their own-label product lines to offer ever-increasing appeal to inflation-weary consumers.”