Two-thirds of consumers surveyed about changing consumer habits said they would buy fewer grocery items with rising costs.
A survey by Blue Yonder, which polled consumers across Australia and New Zealand (ANZ), France, Germany, the Middle East, the UK, and the US, found that 65 per cent of consumers bought fewer items across all categories.
Forty-two per cent of respondents stated they shopped wholesale, with around 36 per cent preferring to shop based on promotions and discounts.
Alcohol purchases saw the biggest cuts, with 33 per cent of consumers stating they reduced alcohol purchases to cope with rising prices.
“From buying fewer grocery items and cutting back on alcohol purchases to shopping at discount retailers and reprioritising spending across other categories, consumers are navigating prolonged uncertainty – and retailers must adapt accordingly,” said Ben Wynkoop, senior director, global industry strategist of grocery and convenience at Blue Yonder.
The survey found that consumers were willing to cut back on other spending, such as clothing and electronics, to offset increased grocery costs, with only 7 per cent unwilling to do so.
“During times of economic uncertainty, consumers often look for ways to save money on essential items such as groceries, from shopping at discount stores to seeking out sales and opting for private label brands,” said Wynkoop.
“As a result, retailers tend to prioritise and invest more heavily in their owned brands to accommodate these changing shopping behaviours.”
