Britons are trading down amid cost of living crisis – McKinsey

div classBodysc17zpet90 cdBBJodivpLONDON Reuters – British consumers are reacting to the cost of living crisis by trading down in both stores and products, switching from supermarkets to discounters and from branded to lower priced and private label products, a report from consultants McKinsey said on Monday.p

pSurging prices are causing the biggest squeeze on UK household incomes since at least the 1950s and consumer confidence is at near record lows.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pBritain‘s consumer price inflation rate hit 7.0 in March and economists polled by Reuters expect it will leap to 9.1, its highest since 1982, when April’s data is published on Wednesday.p

pMcKinsey said their survey found that 64 of UK consumers say they have responded to price increases by adapting their shopping behaviour in the last four to six weeks, with noticeable channel and brand shifts as they search for value for money.p

pTheir survey found that a net 22 of consumers shopped more at a discounter, with a net 9 less at a supermarket and a net 32 less at a convenience store, which tend to have higher prices.p

pRecent supermarket industry data from market researchers Kantar and Nielsen has also shown a shift to discounters Aldi and Lidl despite a major focus by Britain‘s big four grocers – Tesco, Sainsbury’s, Asda and Morrisons – to keep the prices of the most commonly bought products low.p

pMcKinsey also found that a net 48 of consumers had traded down on household products, 40 had traded down on both snacks and confectionery and frozen foods, while 24 had traded down in bread and bakery products.p

pElsewhere, there is evidence that cashstrapped Britons are eating out less, reducing car journeys to save on petrol and cancelling subscription streaming services such as Netflix and repair warranties on domestic appliances.p

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pp Reporting by James Davey editing by Jonathan Oatisp

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