Cost of Living Crisis (COLC) - How Necessity is proving the Mother of Invention
Everyone is aware the sky-rocketing cost of living is causing difficulties for almost all households- severe difficulties for many, who are genuinely fearful as to how they’ll manage though the Winter and beyond. The highest inflation figure for 40 years at +10.1% (ONS year to July 2022) was recorded this week- driven by increasing food prices. Significantly, it is the food necessities driving the rises- breads and cereals +12.4%; Milk, Cereals & Eggs +19.4% and Oils and Fats +23.4%. It is fascinating to see how necessity is proving to be genuinely the mother of invention as shoppers seek to create solutions which will enable households to remain well fed.
Shopalongs allow us a unique perspective as to the impact of necessity on food choices, trade-offs and tensions at point of purchase. The dynamism of the decision-making process is testament to the inventiveness of shoppers- and how new or different habits can be a source of joy as well as functionally meeting budgetary needs.
Those who are “Conscious but Comfortable” are being much more disciplined as they shop, with evidence of such audiences pro-actively seeking to halve their household grocery spend, typically from £150 per week to £75, in anticipation of a harsh winter. The bottle of wine which was considered a necessity 3 months ago is now considered a treat purchase (even if emotionally it feels like a necessity!)- not much joy there. However, if shopping on-line, the apparent move away from relying on favourites, in favour of scrutinising items to ensure best value is achieved, has encouraged these “Conscious but Comfortable” shoppers to discover new food ideas, brands and options to satisfy the myriad of needs bundled together when planning and preparing meals.
Experimenting with trading down a quality tier from perceived premium brands/ranges to the standard tier options across categories and often finding them more than acceptable; swapping fresh meal components for frozen, tinned or dried options and enjoying the resultant meals and experimenting with alternative or lesser known brands, ranges and ingredients has been revelatory for many- not just discovering more than acceptable switches, but also in re-inventing long established household meal bank meals. Necessity is proving the mother of invention.
The pro-active stance adopted in food shopping does allow “Conscious But Comfortable” shoppers to build a “fun food fund”- a source of genuine joy! Typically, it seems the “fun food fund” is spent outside of the supermarkets- poring over menus when eating out, choosing a cheeky takeaway, dwelling in the Deli or perusing the Patisserie, according to individual tastes. The time taken in browsing and engaging in the purchase is exciting and heightens anticipation and joy beyond the actual eat. It seems brands and supermarkets are not quite hitting the spot for the treasured treats- they need to be more inventive perhaps!
For those who were struggling before recent cost rises, such luxuries are not on the radar and food switches and alternatives have long since been adopted. The necessity for households now pushed to “Breaking Point” has led to more radical invention- shopping day to day has allowed this audience to take advantage of deals and offers including the “yellow stickered” short-dated products, which can suit the food mood as well as the budget.
In addition, it allows these shoppers to widen their repertoire of stores- going beyond the recognised Supermarkets and Discounters and embracing so-called “Cheap Shops”. The “Best Buy Now” offers of Heron Foods providing recognisable value and the XSELL range in their frozen area being described as astonishing value by the Breaking Point shoppers who have recently started shopping there. Critically, these discoveries have provided food joy as well value. Will “Conscious but Comfortable” shoppers soon take the plunge and what might that mean for mainstream Supermarkets, Discounters and Brands and what opportunities does that present- inventiveness inspired by necessity is likely to drive success from unexpected sources.
At the sharpest of the sharp ends, for the “Crisis Households” necessity is forcing more extreme invention. Shopalongs with families thinking “How can I feed the 6 of us on £40 a week” is humbling. That food/budget challenge is not one many would volunteer for and it’s especially demoralising for the household when at least one of the parents is working full time. Nonetheless, solutions are being sought and again it seems Tinned, Dried and Frozen Foods provide salvation. Quick cook times are embraced, especially hob, grill, microwavable and kettle options. Inventive meal planning and experimenting with beans and pulses have yielded surprisingly tasty, nutritious and sustaining meals which can be enjoyed rather than endured.
The opportunity for new food heroes for all Shoppers beckons. Brands, Manufacturers and Retailers should embrace necessity and drive invention. FIS is ready to help!
Written by:Jules Greene,Quantitative Specialist