Almost one third (32 per cent) of Irish consumers plan to cut back on spending in the next three months due to inflation driving the cost of living up, according to a new survey.
PwC's Consumer Insight Pulse Survey 2022, which captures the views of over 9,000 consumers across 25 countries including over 500 in Ireland, also found spending in a number of areas will increase.
Many Irish consumers are happy to pay a higher price for local produce, while in-store shopping remains key to the Irish consumer, the survey found.
Over a third (36 per cent) of Irish consumers say that recent price increases are impacting their purchasing affordability to 'a great extent'.
A further 58 per cent say this affordability is impacted to 'some extent'. Thirty-five per cent of respondents confirmed that they are working in a hybrid way while 57 per cent are required to be physically located at their workplace.
Nearly a third (32 per cent) of Irish consumers expect their spending on products and services to fall in the year ahead; 44 per cent expect this to remain the same while 25 per cent expect it to increase.
Lifestyle and purchasing habits
The survey reveals that consumers have made a fundamental change in their lifestyle and purchasing habits as a result of the Covid-19 pandemic. This change is more pronounced in Ireland in several areas compared to global counterparts.
The survey shows that many of these habits have become ingrained and will actually strengthen over the next six months.
Due to the pandemic, 69 per cent of consumers surveyed said they have increased their shopping online (Global: 63 per cent). Over half (57 per cent) increased their buying from retailers local to them (Global: 36 per cent). Forty-one per cent are buying across a variety of retailers (Global: 33 per cent).
“Just as consumers continue to change their shopping behaviours and preferences, actively searching for the best shopping experience and choice, retailers and manufacturers must move quickly to meet shifting demand and their own inflation and supply chain pressures,” said John Dillon, leader with PwC Ireland’s retail and consumer practice.
“We don’t see these pressures easing anytime soon. Agile businesses that can manage through multiple disruptions while keeping their focus on the demands of their customers are in the best position to succeed in this tumultuous environment.”
