Price hikes forcing shoppers to buy less in a bid to save money

Irish Independent

4 hours ago

The cost-of-living squeezed also means that getting the best price is the main priority for shoppers.
People are making choices about where to shop best on the prices they can get, according to the latest KPMG Next Gen Retail Survey.
The survey found that close to six out of 10 shoppers say that getting the best price is the main priority when deciding where to shop.
The findings come as recent statistics showed that the price of a weekly shop is rising at more than double the general rate of inflation.
Figures from grocery data firm Kantar last week showed grocery prices were up 4.96pc by May 18, compared to the same 12-week period last year.
Kantar said we now have a clear 'tipping point' when inflation goes above 3pc to 4pc. This is when shoppers start to feel it in their wallets, and they change their behaviour, Kantar said.
KPMG found that almost a third of Irish shoppers feel less financially secure now compared to the start of the year.
The research highlights significant financial pressure that Irish consumers are under, and a risk of further consumer price pressure as the impact of tariffs take effect.
Questioning was conducted by Red C in early April, after US President Donald Trump make his first announcement on tariffs.
Head of consumer, retail and manufacturing at KPMG David O'Kelly said the future for shoppers was unsettling.
ADVERTISEMENT
Learn more
'This research highlights the significant financial pressure Irish consumers are under as we move through 2025.
'Financial uncertainty could be compounded by increased trade headwinds depending on the form of the threatened tariff changes. This dynamic creates a clear challenge to Ireland's retailers to optimise their supply chains and cost structures to maintain competitiveness,' he said.
Researchers found that Irish shoppers are actively modifying their shopping behaviours to manage household budgets.
More than half of the respondents (54pc) said they are now buying less items to save money.
This is an increase from 50pc who said they are buying less when surveyed last October.
Shoppers are using various tactics to stretch their shopping budgets.
They are making more frequent use of retailer loyalty schemes to get lower prices.
Shoppers are also actively seeking out products on promotions or discounts.
They are buying more own-brand or value products, or cancelling monthly subscriptions
are the main saving methods, the KPMG-commissioned survey found.
The report reveals that females are notably more likely than men to implement various cost-saving measures.
Loyalty schemes and discounts continue to influence consumer behaviour.
Two in five report that discounts play a crucial role in their shopping decisions.
People between the ages of 18 and 24, and those between the ages of 34 and 54 place an even higher importance on the use of discounts.
Nearly three in five indicate that loyalty schemes drive their choice of retailer, with these programmes having a particularly strong impact on younger shoppers when deciding where to shop.
Physical stores continue to be the preferred channel for essential purchases.
The report found that 85pc of Irish adults still purchase groceries primarily in-store, a figure that has remained stable over the past year.
Some 56pc of shoppers favour physical stores for homeware items.
Just over a third of clothing shoppers also prefer in-person shopping experiences.
Rural consumers are more likely to buy clothes and fashion online compared to urban residents.