People are ditching popular brands in favour of own brand alternatives as groceries are to cost an average of €453 more this year.
The latest research from retail analysts at Kantar show how the soaring cost of living is hitting households hard as it is costing more to fill the shopping trolley with staple foods.
And rising prices are leading to people changing their habits, with people increasingly seeking out better value by shopping around and cutting back on brand names.
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Kantar found that two thirds of people say they will now go for a supermarket’s own brand alternative over the more expensive popular brand of the same staple.
Researchers predict this trend will grow in the weeks and months ahead.
People are shopping less too. The average family is getting groceries three times less a month as prices for basics, such as butter, bread and eggs continue to rise. The latest report shows sales in the supermarket are down, by 4.9% in June, as people try to save money, with grocery inflation running at 6.5%, the highest since February 2013.
Emer Healy, senior retail analyst at Kantar, worryingly predicts that the price of groceries will continue to go up and up. She said: “Food and drink prices are on a steady upwards trajectory and many people will be feeling understandably worried about the rising cost of living.
“Price increases are now set to add an additional €453 to our average annual grocery bill, which is over €100 higher than the figure we quoted back in early May. We’ve seen some of the sharpest increases in essentials like butter, eggs, bread, and flour, which are a non-negotiable feature on the shopping list for many of us.”
Kantar say shoppers are taking additional steps to manage their spending at supermarket tills, and making three fewer trips to the store on average per month than they were this time last year.
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Ms Healy said: “Unsurprisingly, 53% of the consumers we spoke to said that they will be actively seeking out any deals and discounts in store because of inflation.This is clear in the shifting balance between brands and private label, where 66% said that they would swap the branded product in their trolley if a private-label item was cheaper.
“We expect this trend to continue over the next 12 months, and those retailers offering good value, own-label products and promotions will be the most successful in attracting and retaining customers.”
Kantar’s research also showed that online shopping continues its rise in popularity post-Covid.
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It found: “A lot of this growth is coming from families with younger children who are getting organised as the school summer holidays fast approach. They’ve spent an additional €2.3million on online grocery shopping over June, perhaps hoping to save on extra trips out in the car and avoid the petrol pumps.”
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