Navigating the cost of living crisis UK

This winter has undoubtedly been bleak for UK households & businesses. Soaring grocery price inflation is a primary concern for many UK citizens as inflation reaches a forty-year high of 14.7%. Kantar has forecasted that shoppers face a colossal jump of £682 in their annual grocery bill if they continue to purchase the same products [1].

This rapidly changing world has consequently put consumer goods suppliers & retailers under immense trading pressures. Brands are walking the challenging line of trying to absorb these additional costs to remain competitive whilst profitable.

That aside, consumers are already adapting their behaviour to reduce spending, with 64% of shoppers claiming they are switching to cheaper brands [2]. Brands will now need to take active steps to grow brand loyalty, particularly on line, where digital shelf presence dominates purchase behaviours.

Yet, in periods of uncertainty such as the global pandemic, forward-thinking brands are pioneering new strategies having a lasting effect on the online grocery channel. Now is the time for brands to break new ground in connecting & understanding their shoppers.

Discover how FMCG brands can win shoppers during the cost of living crisis here.

Sources

[1] McKevitt, F. (2022) UK grocery price inflation hits record 14.7% and still too early to call the ceiling, Kantor. Available at: https://www.kantar.com/u ki/i nspi ration/fmcg/2022-wp-u k-g rocery-price-i nflation-h its-record-14-7- a nd-sti I I-too-early-to-ca I l-the-cei I ing (Accessed: December 5, 2022).

[2] Bayford, K. (2022) Cost of living: 64% of consumers switch to cheaper brands to save cash, Grocery Gazette from Shopmium Research. Available at: https://www.grocerygazette.co.u k/2022/11/29 /consumers-cheaper-brands (Accessed: December 5, 2022).