Cost of living crisis ‘set to hit nearly every UK business’

wallet-3548021_1920The cost of living crisis, which has seen price rises for energy and groceries to council tax and petrol is set to hit nearly every UK business, with 75% of Brits saying the financial squeeze will affect their spending plans across the board.

The Toluna Global Consumer Barometer Study, which surveyed 1,011 people in the UK, reveals that over half of people (51%) believe they will be worse off financially in the next three months and are planning to scale back on spending due to the impact of increased costs and price changes.

It also highlights exactly where consumers are seeing the greatest impact and how they are planning to respond.

An overwhelming 93% of respondents said they are being impacted by higher prices when it comes to buying groceries, while 80% said they are feeling the pinch when purchasing clothes and 74% on electrical goods (such as computers, phones, and home appliances).

These sectors are followed by eating out at a restaurant or pub (74%), mobile phone packages (67%), music and TV subscriptions and takeaways (66%) household subscriptions, such as cleaning products and coffee and tea (59%).

When asked about their weekly or monthly food shopping bill, respondents revealed that fresh foods had been most affected (77%), followed by dried foods such as pasta, rice, packet sauces, and biscuits (65%), bakery items (64%), frozen food (63%) and health and beauty products (55%).

People are looking to cut back on what they are buying, adjust where they are buying, and adapt how they use products.

Over a third of respondents (38%) plan to switch to supermarket and store own-label products, forgoing their preferred brand names to save money, while 29% will change the supermarket where they usually shop to save on food costs, and 27% are changing the number of snacks they buy and where from.

Toluna UK & Netherlands head of research Lucia Juliano said: “It’s clear that the cost of living crisis is already starting to bite. We’ve seen an immediate change in people’s spending habits with many cutting back on what they enjoy, and also need, to help pay the bills.

“From our research, people are committed to making key lifestyle changes to ensure they keep the cost of living down as much as possible.

“Brands must understand this and be prepared to respond. From switching products to shorter showers, cost is a key driver in daily activities, food choices, and social interests. It’s likely to become even stronger of a priority with higher interest rates and even more energy price hikes on the horizon.”

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