A return to the consumer behaviour of the 2011-12 crisis? Economic conditions may be very different today, but pressure on disposable incomes and high prices are bringing back behaviours that dominated the previous decade: hunting for deals, switching to cheaper products and cutting back on anything not considered absolutely essential.
This is the picture painted by a survey by Circana, presented yesterday at an ECR Hellas event. Greek consumers are now keeping a closer eye on every euro they spend, comparing prices and adjusting their priorities. They are cutting back on clothes and shoes, entertainment and going out, while trying to leave room in their budgets for holidays and small everyday pleasures.
The survey, entitled “Consumption in Transition: The Forces Shaping the Market of Tomorrow”, was conducted among a nationwide sample of 1,000 consumers aged 18 to 70. It shows how financial pressure is changing not only the amount households spend, but also how they decide where to allocate their money. Supermarkets are once again the big winner, as they were during the economic crisis and the health crisis six years ago.
According to Circana’s findings, the financial security index stands at just 3.89 out of 10, while 74% of respondents say they are struggling to make ends meet or need to manage their finances very carefully:
- For 57%, the biggest source of concern is the mismatch between wages and the cost of living. Housing costs come next, absorbing a significant share of household income.
- Some 85% say they have cut back on buying clothes, shoes and accessories, while substantial cuts have also been made to entertainment, travel — something that does not seem to be reflected in practice, though — and energy.
In this environment, supermarkets remain a key destination for households, but the way Greeks shop has changed markedly. Average monthly supermarket spending stands at €347. Consumers are now much more careful about what they buy, paying particular attention to special offers and the final price of each product:
- Three-quarters say they buy more products on offer, 66% have changed their shopping habits because of prices, while 48% are buying less.
- Moreover, 72% consider it fairly or very likely that they would choose a different brand if they came across an attractive offer.
Despite the pressure, supermarkets continue to enjoy the highest level of consumer trust among the sectors surveyed. Their average score is 4.48 out of 7, higher than that of other retail and service sectors.
Private label and holidays on a tight budget
The search for lower prices is boosting private-label products, which 63% of consumers buy regularly. Their penetration varies by category, however, with established brands retaining a strong position in products where trust and quality carry greater weight.
Despite the cuts, Greeks are not giving up on holidays and eating out. Sixty per cent said they planned to go on holiday, but 44% of them expected to spend less. On average, consumers planned 4.3 meals out and 2.6 visits to food shops a week.
Supermarkets therefore continue to play an important role in tourist areas, as holidaymakers combine eating out with grocery shopping to keep the cost of their holidays down.
Artificial intelligence is also gaining ground, with consumers’ familiarity score standing at 3.63 out of 5, driven mainly by younger age groups. For now, it is used more as an advanced search engine for information, recipes, product comparisons and offers than as a personal shopping adviser.