The majority of British consumers said the cost of their weekly grocery shop had increased over the past six months as the country struggled with cost of living issues.
According to new data from NielsenIQ, 53% of Britons have seen an increase in the cost of their weekly grocery shopping, with the figure rising to 70% among consumers known as “strugglers”.
NielsenIQ’s Economic Divide study has identified five new consumer groups and examined how they will influence purchasing behavior in the coming year as inflation reaches a 30-year high.
The groups are based on the economic impact of the pandemic on consumers’ financial security and related spending habits, each shaped by their circumstances and attitudes toward life after COVID.
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The consumer groups were:
● fighter: 19% of respondents were described as “strugglers.” These consumers have lost their jobs or income and continue to do so.
● Rebounders: About 22% are “rebounders,” buyers who lost their jobs or income during COVID but are back on track.
● Unchanged: For 16% of Britons The financial security of their household was not affected and they continued to spend money as usual.
● Reserved: This represents 35%. These consumers saw no impact on their household financial security during COVID-19, but are still cautious about their spending habits
● Unchanged: For 16% of Britons The financial security of their household was not affected and they continued to spend money as usual.
● Thriving: 8% of consumers surveyed said they saved money during COVID-19 and feel more financially secure now than before the pandemic.
Although Thrivers are considered the most financially secure, 62% said they noticed an increase in their grocery spending even though they were buying the same items.
When it comes to controlling food spending in the face of rising costs, 16% of UK consumers have stopped buying certain products altogether. The largest group of consumers to make such radical changes were the ‘fighters’ (21%), just below the global average for this group (23%).
According to NielsenIQ, 21% of all shoppers choose the cheapest product regardless of the brand. Among the “fighters” this figure rises to 27%. Among the “sensitives” this decision is least likely: 13% remain loyal to their preferred brand regardless of price.
In line with the global average (69%), 61% of UK consumers preferred to shop for groceries in a hypermarket or supermarket. This rose to 66% in the Cautious, Unchanged and Thriving groups.
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Online ordering was the most popular during the “crisis” period: A total of 84% ordered groceries for delivery or pickup from a supermarket, a traditional local store, or Amazon (AMZN).
This was above the global total (83%) and also above the UK total (66%).
Rachel White, managing director of NielsenIQ UK and Ireland, said: “The last two years have been marked by unprecedented levels of uncertainty for consumers and the war in Ukraine has only exacerbated sentiment about rising living costs and inflation.”
She called on retailers and manufacturers to “develop new strategies” to adapt to a “divided consumer landscape.”
