How current events are shaping UK consumer behavior

| Survey
Rising prices are the number-one concern of UK consumers, who provide clear evidence of trading down.

Almost half of UK consumers are negative about their country’s economic perspective. Overall pessimism about economic recovery has decreased in September 2022 but remains at a higher level than during COVID-19 lockdown periods; the percent expressing pessimism is more than double the percent in October 2021.

Consumers are changing retail stores in a general move to increase purchases from discounters. Major drivers of the move to a new retailer are value for money and prices/promotions, particularly for Gen Z and baby boomers.

Across categories, majorities of consumers are switching to private-label alternatives. Even for holiday shopping, most consumers are planning to spend less this year.

These exhibits are based on survey data collected in UK between September 23 and October 2, 2022. Check back for regular updates on UK consumer sentiments, behaviors, income, spending, and expectations.

0—35
Responses suggest organic and sustainable brands will have higher share of basket
Three emerging consumer themes in September 2022
Rising prices are by far consumers' top source of concern; consumers in the United Kingdom are more concerned about inflation than consumers in other countries
Rising prices continue to be number one concern for UK consumers; invasion of Ukraine has become less prominent
Rising prices are the dominant concern for consumers across all income categories and generations
Overall pessimism about economic recovery is increasingly negative and remains higher than during the COVID-19 crisis
Consumer pessimism is elevated consistently across major economies in Europe
Level of confidence in economic recovery increases with income; Gen Z has more confidence than other generations
Pessimism on the current economy is most common among the consumers who are most concerned about price increases
Three emerging consumer themes in September 2022
Across countries surveyed, about 95 percent of respondents observed price changes
Consumers continue seeing price increases across all categories, especially in eating out, apparel and footwear, and interest rates
Consumers remain concerned about rising prices, with millennials and Gen X most likely to scale down their lifestyle
Consumers are putting less money into savings and expecting to spend more in energy, transport, and food and essentials
Consumer expectations about the price of energy, food and rent/mortgage continue to worsen
A majority of consumers report spend increases and expect further increases in energy, transport and gasoline, and food and essentials
Spending on food and gasoline increased sharply and is expected to grow further; the greatest reduction is for jewelry and accessories
Consumers' intent to spend continues to worsen across all categories non - essentials categories
Consumers plan to stop buying or buy fewer nondiscretionary items and switch to less expensive brands in food, cleaning, pet care, and beauty products
Two-thirds of consumers, led by baby boomers, conscious of home energy usage; Gen Z is the generation likeliest to postpone large purchases
Three emerging consumer themes in September 2022
Consumers’ behavior continues to change; purchase of private label is up 50 percent
Gen Z and millennials are most likely to have switched to different brands and retailers in the last three months
Trading down to lower-cost brands is particularly evident in household products, frozen foods, and snacks and confectionary
Consumers are mainly switching brands for household products, frozen foods, and snacks and confectionary
Across generations, better value for money and better prices/promotions consistently are key reasons for switching brands
Consumers across countries are shifting to shopping at discounters
Consumers continue to switch to discounters from convenience stores and hypermarkets
Deep dive: A majority of consumers are not planning on shopping at organic (super)markets
Consumers' top reasons for moving to a new retailer are prices/promotions and value for money, particularly in the United Kingdom
Across generations, better value for money and better prices and promotions consistently are key reasons for switching retailers
Omnichannel shopping is still reality for half of consumers in all categories, but in-store purchase and research have increased
Majorities of millennials, Gen X, and baby boomers do not plan to splurge or treat themselves and expect to shop less for holidays
By category, among those who plan to splurge, older consumers most often plan for restaurants, Gen Z more often for apparel
Consumers work from home, cook at home, and use grocery delivery more often than before COVID-19
Responses suggest organic and sustainable brands will have higher share of basket
Three emerging consumer themes in September 2022
Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

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