Shoppers are increasingly likely to switch supermarkets or swap to cheaper brands in the face of soaring food price inflation.
59% of consumers are likely to switch supermarkets in order to take advantage of offers and promotions, an exclusive ICM Poll for Retail Week revealed. And two thirds of consumers are likely to change to cheaper food brands and products as a result of inflation.
Those shoppers most likely to switch are in the C2DE demographic category, which could mean that Asda and the hard discounters could be most affected by disloyal customers shopping around for deals. 30% of C2DEs are very likely to switch supermarkets and 32% of C2DEs are very likely to switch to cheaper food brands.
The poll also found that shoppers will cut back most on entertainment products if inflation affects their spending. 59% said they would spend less on items such as DVDs, while 53% said they would cut back on electricals. 49% of consumers would cut back on furniture, often touted as the first category to be hit when shoppers tighten their belts.
The findings come as this week the Office of National Statistics reported that consumer price index inflation rose 3.7% in the year to December, up from the previous month’s 3.3%, marking the highest level of 2010.
Food was the biggest contributor. Prices leapt 1.6% month on month, the largest November to December rise on record. The most significant increase came from fruit and vegetable prices.