In a recent study, it was discovered that households with above-average wage earners are switching to value brands and stores’ own-label brands simply to be able to keep up with inflation. No longer is Middle-Britain in their 40’s and 50’s able to shop name brands because of the need to make ends meet.
Those who have traditionally had larger disposable incomes are now feeling the squeeze because of inflation. They are faced with lower returns on savings accounts and significantly higher monthly bills. Approximately 24% of those who have higher than the average income are stating that they have been literally forced into buying value brands within the past few months.
Furthermore, approximately one-fifth of this group said that it was also necessary to reduce the amount of gas, electricity and oil within this same timeframe. Then there are those who are considered to be living ‘exclusive lifestyles.’ These are people in their 50’s and 60’s with grown children, no mortgages and what is supposed to be a high disposable income. Even this group has transitioned to buying value brands.
It appears as if consumers across the board are shopping value brands for a number of reasons which range between making ends meet and saving money ‘just in case.’ Not only are consumers foregoing the finer things in life but they are also becoming highly conscious of the prices they pay for necessities and the amount of money they are paying for fuel.
The Big Money Index by Axa, which is calculated once every three months, found that all consumers are switching to cheaper brands when shopping for food. Between 1,500 and 2,500 people are interviewed for each study which provides a good sampling of consumers from every wage bracket, including even the unemployed.
