Nearly all Irish consumers will adopt cost saving behaviours over the next six months, PwC predicts.
Forty five percent of Irish consumers report that they are extremely (19%) or very concerned (26%) about their personal financial situation.
A new survey by PwC found that almost all Irish consumers will adopt cost saving behaviours over the next six months and around a quarter of Irish consumers will increase their online (27%) and in-store shopping (23%) over the next six months.
“For retailers to thrive in this challenging environment and maintain consumer engagement, they must remain focused on delivering value to the consumer, invest in the in-store store customer experience and ensure their omnichannel propositions deliver a frictionless customer centric experience”
74% of Irish consumers (Global: 56%) said that rising prices has been the most frequently experienced issue over the last three months when shopping in-store (Online Irish shoppers: 63%; Online global shoppers: 48%).
This is according to the 2023 PwC Irish Consumer Insights Pulse Survey, which captured the views of 523 Irish consumers alongside 9,180 global consumers across 25 countries, published in Ireland today. This press release deals with the Irish results.
A nod to a return to more normal activities, around half plan to take an international flight (45%), stay in a hotel (52%) and take a staycation (44%) in the next few months.
Irish consumers are cautious and mindful of cost and value
2022 saw the re-appearance of inflation after decades of very low levels. As a result, Irish consumers are cautious and mindful of cost and value. The survey reveals expected spending increases over the next few months to be less than last year, for example: home improvement (2023: 26%; 2022: 34%), travel (2023: 25%; 2022: 52%), fashion (2023:18%; 2022: 32%), home entertainment (2023: 14%; 2022: 21%), health and beauty (2023: 14%; 2022: 27%) and luxury/designer goods (2023: 9%; 2023: 19%). At the same time, nearly half (47%) expect to increase spending on grocery.
Consumers are shifting their consumption habits in-store and online as a result of the cost-of-living challenges and supply chain disruptions. 98% of Irish consumers will adopt cost-saving behaviours over the next six months (Global: 90%). It’s all about value, for example, six out of ten (60%) Irish consumers intend to buy retailers’ own brand products (Global: 32%); 59% intend to shop with retailers offering better value (Global: 46%); 55% will buy certain products only when they are on promotion or special offer (Global: 49%) and 53% will switch to a cheaper brand (Global: 37%).
“2022 was a challenging year for consumers with growing inflation, higher fuel bills and rising interest rates,” said John Dillon, leader at PwC Ireland’s Retail & Consumer Practice.
“The new research highlights a heightened level of concern across Irish consumers. They are also very clear about the actions they will take to manage their budgets.”
“For retailers to thrive in this challenging environment and maintain consumer engagement, they must remain focused on delivering value to the consumer, invest in the in-store store customer experience and ensure their omnichannel propositions deliver a frictionless customer centric experience.”
