Consumers cut back on food

21 July, 2011

A new study has claimed cash-strapped shoppers are turning to budget stores – as it was revealed that food sales have fallen year-on-year and consumers are ignoring organic meat.

A nationwide survey from consumer watchdog Which? said shoppers have been forced to become more savvy – with some 84% of people saying they are worried about the cost of food.

Meanwhile, data from retail analyst Nielsen revealed food and grocery sales are down by 1.7% compared with a year ago.

Nine in 10 said they had noticed an increase in the cost of food in the past year, and a third said they had reduced spending on groceries this year in the Which? study. It also found that fewer people were willing to splash out on organic meat, and nearly half are cutting back on organic fruit and vegetables.

Richard Lloyd, executive director at Which?, said: “Despite inflation falling slightly in June, people are still feeling the squeeze from soaring food prices. People are changing their behaviour and becoming more savvy shoppers when it comes to groceries, but there’s only so much they can do to cut back on the basics.”

A separate study by market researchers Mintel found four in five people had changed shopping habits because of the rising cost of food.

>> Inflation falls but food prices go up





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