Around 71% of EU consumers have changed their shopping habits to keep food on the table amid the cost of living crisis, Bloomberg reported on Monday, citing a survey by the market research firm American IRI.
According to the report, “inflation fatiguein the region led to “coping behaviorsunheard of since the 1970s and 1980s, such as skipping meals, cutting food expenses, buying expired goods or discounted items.
Some 58% were forced to cut back on essential spending and 35% dipped into personal savings or took out loans to pay bills.
“It is evident that consumers’ willingness to spend is suffering and the direction of travel is likely to deteriorate – with the likelihood of further sharp price increases given high input costs and volatile energy pricessaid IRI Senior Vice President Ananda Roy, commenting on the results.
More than half of those surveyed also revealed they planned to cut back on their food orders, while 47% said they would cut back on their visits to restaurants, bars and cafes.
Roy suggested that because inflation is unlikely to decline in the near future, consumers and retailers should adjust to the new realities.
“There are several tough shopper decisions on the cards, and retailers and brands would do well to consider long and hard how they are going to meet shopper needs.,” he stated.
Euro zone recession more likely as activity slows – Bloomberg
Price growth in the EU hit a new high of 10.9% year-on-year in September, statistics agency Eurostat reported last week. The increase continues to be driven by food, fuel and energy costs. As a result, consumer confidence across the bloc remains near a record low, after falling for the fifth consecutive quarter in the third quarter of this year, according to Deloitte’s Consumer Tracker.
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