As the cost of living continues to rise, Canadians are hunkering down and prioritizing their savings, according to the latest EY Future Consumer Index Survey published by Progressive Grocer. Most consumers do not expect the economy to recover over the next year, and in response are turning back to pandemic-induced shopping habits. That means grocery retailers should prepare for consumers (33%) to substitute their normal purchases with new brands or trade down to private labels (21%). EY found that 49% of Canadians would consider buying private-label packaged food, while 35% expect to spend less on grocery delivery.
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“Typically, when finances are tight, people cut their spending in a narrow range of categories and still reward themselves with ‘treats,’” Kristina Rogers, EY global consumer leader, stated. “But now we’re seeing consumers apply their money-saving tactics across all categories.”
Canadians are also seeking more cost-effective ways to live, such as cutting back on the amount of food they waste or toss (85%). “Increased working from home has given consumers more autonomy over how they structure their time; they’d also like to be in the driver’s seat in other parts of their lives – notably, how they use their money and how they share their personal information,” Rogers said. “While they’re becoming more careful about their spending, they’re also feeling bolder about taking action to protect their values and lifestyles.”
