Nearly one in three shoppers plan to buy more British groceries in the wake of Brexit, although 41% are planning to reduce household spending amid concerns over the economy, according to new research from Nielsen.
Nielsen’s research on the Brexit impact on shopper behaviour found that 64% of the 417 respondents believe the referendum result will negatively impact the British economy in the short term, against 16% who think otherwise. In addition, 67% of shoppers think there will be a rise in grocery prices.
As a result of Brexit 31% of shoppers plan to buy more British groceries with only 4% planning to buy less, while 37% intend to change the supermarket where they buy most of their groceries from.
Of the 41% who plan to save on household expenses, 52% said they would switch to cheaper grocery brands to save money.
“It’s important to be aware that these are just early sentiments at this moment in time that could look very different in a few months,” said Sophie Jones, Nielsen’s senior UK shopper research manager.
“Short term volatility is to be expected. We know shoppers - even since the recession - have held onto conservative spending habits. This is likely to be reinforced more heavily in the short term.
“To limit any potential impact, retailers need to ensure they have the right price and promotional strategies in place to avoid people switching as well as reviewing their product ranges to ensure categories are protected in the short term,” she added.