People are switching to the discounters. Those who didn’t typically shop at the discounters are now opting to go to the likes of Aldi and Lidl for their main shop. Bearing in mind convenience and location are two of the main factors behind supermarket choices, a growing number of shoppers migrating to the discounters is a good indicator of the severity of the cost of living crisis.
Value is front of mind for people of all socioeconomic backgrounds, and brands will be competing against value-tier products that operate on very low profit margins. So it will be about keeping a lid on inflation as much as possible, and opting to showcase products in a way that appeals to shoppers from an angle other than just value. So whether that be sustainability, organic and other certifications, brands will have a tougher time convincing shoppers that their higher-priced product is better purely based on price. However, if people aren’t in a position to go out to eat at a restaurant, they may well opt for premium own label supermarket lines to bridge the gap on a budget.
Our panellists discuss:
- Are shoppers switching from premium to value ranges?
- What’s the role of discounters in tough times like these?
- Between shops and suppliers, who’s bearing the brunt of costs?
- What’s the impact of a weakened pound?
- Are there positives for suppliers?
- How can convenience retailers survive?
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