UK Shoppers Hit the Brakes: 65% Cut Grocery Buys to Shield Wallets from Inflation

UK shoppers are changing their shopping habits in response to the increasing financial pressure from inflation and changes in trade policies, a new survey from Blue Yonder has found.

The data identified increasing worry among consumers, with more than three quarters (85%) of respondents expressing concern over how inflation will affect groceries.

Ben Wynkoop, Senior Director at Blue Yonder, commented: “The findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers’ everyday lives.

“From buying fewer grocery items and cutting back on alcohol purchases to shopping at discount retailers and reprioritising spending across other categories, consumers are navigating prolonged uncertainty — and retailers must adapt accordingly.”

Almost half of the consumers (49%) cited the recently introduced tariffs as being a driving factor of inflation for grocery prices.

Other perceived reasons mentioned by respondents were higher costs for raw materials (42%), more labour costs (39%) and higher profit margins for businesses and manufacturers (33%).

In particular, more than half of UK shoppers (56%) believed that global tariffs are the main driver of inflated grocery prices.

Shoppers are choosing to buy less to offset the additional costs from tariffs, with close to 65% of consumers responding that they would buy fewer groceries to mitigate costs, while 42% are choosing to shop at discounters.

Consumers are scaling back on alcohol purchases to save money, with 37% of UK respondents planning to reduce their spend on alcoholic beverages.

Drinks businesses in the UK and further afield are already bracing for the financial impact of US tariffs on their exports, with Diageo and bracing for a hit from the newly imposed tariffs.

Additionally, to balance the rising grocery costs, almost two-thirds (61%) of British respondents are likely to slow down spending on apparel and footwear.

Wynkoop added: “With most consumers willing to adjust shopping habits in response to grocery inflation and mounting financial pressures, retailers – not just grocers – need to recognise the importance of building trust with shoppers through transparency, targeted promotions and affordability-first strategies.”

Source: Grocery Gazette