One in ten consumers say they will reduce their money-saving shopping behaviours

New research released by KPMG has provided insight into whether consumers would reduce some of the buying and saving behaviours that have become more prevalent during the cost of living crisis, if they had more disposable income available to spend.

KPMG’s research was keen to explore whether consumers would still continue the same actions, even if the pressure on their essential costs eased in the months and years to come.

Posed with the scenario that their household essential costs ease, increasing their discretionary spending budget, less than one in ten consumers said they would buy less own brand / value produce (9%), shop less at discounter / lower price stores (9%), buy less promotional / discounted goods (6%) and also use retailer loyalty schemes less (6%).

Two-thirds of consumers said that they would save any extra funds. While 14% said they would buy more sustainable or ethical produce, and 12% said they would increase their branded goods buying.

So far this year, household essential cost levels have led half of consumers to cut their non-essential spending, reducing their average monthly spend by £72 on average compared to January.

The majority of the rest of consumers polled reported spending at the same level as when 2023 ended.

Commenting on the findings, Linda Ellett, KPMG UK’s Head of Consumer, Retail and Leisure, said “As household cost pressures have ramped up over recent years, many consumers have been forced to adapt their budget – cutting discretionary spending and finding savings on their essential costs where possible. Market share for lower price retailers has grown, as has the amount of people trading down to own brand and value goods, and actively searching for offers.

“Many consumers have taken cost-cutting steps to balance their budget and are now maintaining that, but as thousands of householders come out of their mortgage fix and have to enter higher-cost deals, consumers are still cutting spend elsewhere in order to adjust. This is reflected in half of consumers telling us that they’ve cut non-essential spend so far this year, and one in three saying they are using even more cost-cutting tactics when shopping.

“Many of these behaviours when shopping are so instilled now in many of us, that even when posed with the scenario that essential costs ease, providing more cash in the pocket, few would reduce their cost-cutting buying behaviours. Consumers instead are far more likely to save any extra cash.

“This landscape of heightened price-point buying, promotional demand, and increased savings volumes continues to pose a variety of questions for retailers and for the economy generally regarding whether spending taps will be turned beyond a gradual drip.”