As UK inflation continues to surge unabated, shopping habits are in flux. Consumers are cutting back on discretionary spending, as well as switching to private labels, and shopping around more to find better deals.
Our previous Analyst Take discussed how retailers should react to these trends. This follow-up will consider how different categories are being affected and share our take on retailers that are well positioned to weather the inflationary storm.
Grocery: Discounters gain ground as shoppers seek savings
The outlook: Household bills are rising fast, so shoppers are looking to save on their weekly trip to the grocery store. Consumers are managing their money at the tills by shopping more frequently but buying smaller amounts, trading down to private label products, and even switching retailers.
- Sales of private-label goods continue to rise, and they now hold a 51.6% market share of grocery sales versus branded products—the biggest Kantar has recorded for the UK.