Recession fears see Brits stock up on own-brand kitchen staples
THE COST of living crisis is beginning to be felt in the pockets of ordinary punters – with more than one in three turning towards own brand products to keep the kitchen cupboard stocked.
New research from KPMG suggests more than half of UK consumers have reduced ‘non-essential’ spending amid recession fears, with eating out top of the list of sacrifices.
Though the jury remains out on whether the UK will enter a technical recession, the country is undergoing its most painful squeeze on real incomes in decades, due in large part to runaway inflation.
More than four in ten have not undertaken any ‘big ticket’ purchases this year, and a third are using their savings to help meet essential household expenditure.
Alongside the rise of own brand and value products, others higher up the financial ladder are increasingly ‘swapping out’ restaurant meals for premium home cooked dinners.
Brits are also set to feel even more pressure on their household finances this week, with a range of tax changes set to hit paycheques.
Linda Ellett, UK head of consumer markets for KPMG said the cost-conscious mood might be good news for discounters.
“With energy, mobile, and broadband costs set to rise for many households from April, a number of consumers will likely have to further cut back their discretionary spending,” she said.
“Buying behaviour also continues to change as shoppers look to lower costs – including switching to discounters, buying more own brand and value produce, and searching out promotional prices.”
Lidl and Aldi, the discount grocers, have continued to pick up market share from their bigger competitors.
The nation’s largest grocer, Tesco, has managed so far to resist competition from the two German outfits, and actually picked up market share over the past year.