Shoppers are concerned about the rise of prices in their supermarkets

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Shoppers are concerned about the rise of prices in their supermarkets

From our latest CSI survey, it appears that shoppers are concerned about food prices rising over the next 12 months. 82% of the shoppers surveyed think the price of groceries will become more expensive in the next year. Whereas, only 6% of shoppers think prices will become cheaper!!

49% of shoppers also expect their household income to be worse in the next 12 months. Despite these financial concerns, shoppers do not expect to see themselves converting to Discounter Retailers. Is there an opportunity here for Discounters to reach out and target these shoppers in concern?

image2-300x288Despite their current household income, the majority of shoppers across the board believe prices will increase, however a higher % of shoppers at both ends of the scale were more likely to expect prices to go up in the next year… 90% of shoppers who earn less than £15K and 93% of shoppers who earn £71K+ expect prices to rise.

An interesting correlation was also seen… the older the shopper the more likely they were to expect prices to increase. Is this because they have seen it all before, or perhaps just more negative?

Not only do shoppers expect prices to go up, this has to be allied with the fact that 49% of shoppers also expect their household income to be worse next year.

Despite whether shoppers think their household income will get better, worse or stay the same over the next year, shoppers overall still expect prices of groceries to increase.

Although shoppers are expecting to be in a financially worse off position in the next 12months AND they are expecting prices to rise in the shops… shoppers do not see themselves changing stores or shopping in different channels next year.

Only 19% of shoppers think that they will convert to Discounter stores next year. This is a real risk to Traditional Grocery as Discounters are increasingly advertising to remind shoppers that they can get similar products for cheaper prices. In this continuing difficult market, more shoppers may move than had originally planned to.