Shoppers ditch premium supermarkets as cost of living crisis bites
Nearly half of shoppers across the West Midlands have switched to cheaper supermarkets due to the cost of living crisis, research has found.
The study has found that while 46 per cent of shoppers overall had already changed supermarkets, a further 30 per cent are considering doing so.
Conducted by Solihull-based Paragon Bank, the research uncovered the number of people shopping with Marks & Spencer, Waitrose, and Ocado had fallen for each by at least 50 per cent.
The fall in the numbers shopping at premium supermarkets coincided with a rise in the use of cost-saving alternatives, with Aldi, Lidl, Iceland, and Farmfoods recording substantial growth in their number of customers.
The changing habits of shoppers in the West Midlands was also evident in falls and increases recorded by the market leaders, with Tesco and Asda both gaining ground whilst Sainsbury’s fell back.
The shift in supermarket usage forms part of how consumers are responding to ongoing high food prices, with the research finding 45 per cent of people cutting back on eating out and a further 32 per cent ordering fewer takeaways.
Derek Sprawling, savings director of Paragon Bank, said: “With savers facing ongoing high food costs it is understandable that they are taking pragmatic steps to find better value limit the impact of inflation, with the research finding substantial evidence of savers switching supermarkets and cutting back on meals out and takeaways – but savers should also bring this approach to their savings and financial planning.
“Shopping around for the best financial products for their circumstances could see savers receive a greater return on their savings pots. Big name banks do not always provide the best interest rates available in the market, with specialist banks often offering much improved rates.”
He continued: “Whilst a big-name high-street bank may currently offer savers less than three per cent on a one year fixed rate non-ISA savings account, a specialist may provide the same saver – depositing the same amount – over four per cent.”
“Over the course of a year this difference in interest rates could mean that customers are able to grow their savings pots and see a worthwhile reward for making the time to find the right product for them.”
