Posted: Tue 5th Sep 2023

Consumers call out ‘skimpflation’ in quality of supermarket food and drink

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Tuesday, Sep 5th, 2023

A recent survey has shed light on a new challenge facing UK shoppers: “skimpflation.”

Over half of consumers report that they’ve noticed a decline in the quality of some supermarket food and drink items, even though the prices have remained unchanged, or in some cases, increased.

In this latest strain on consumers, a study for Barclays reveals that 52% of Britons have observed a dip in the quality of ingredients in popular products.

Significantly, 44% have spotted a change in the quality of crisps, 43% in sweets and chocolates, and 36% in cakes and biscuits.

Furthermore, the study reveals that 22% of consumers believe the quality of takeaways has declined. Similarly, 20% think that restaurant meals are not as good as before, yet there’s been no decrease in price to reflect this perceived drop in quality.

Skimpflation isn’t just affecting food and drink. Around 41% of those surveyed noted a decrease in the quality of non-food items.

Specifically, 44% felt that clothing quality is deteriorating, and 37% believe the same about toiletries and cosmetics.

This quality decline is in addition to the ongoing concern of “shrinkflation”, a phenomenon still on the minds of 84% of shoppers. This term refers to the reduction in product size without a proportional drop in price. Familiar products like chocolates, crisps, and biscuits have been primarily identified as affected.

August’s spending trends seem to mirror these sentiments. While there was a muted year-on-year growth of only 2.8%, down from July’s 4%, there were still some bright spots.

Entertainment witnessed a tremendous boost, largely driven by a 101% spike in cinema spending, thanks to summer blockbusters like Barbie and Oppenheimer.

International travel expenses remained robust, with airlines reporting a 32.1% increase, and pharmacy, health, and beauty stores seeing a 5.2% rise, driven by pre-holiday purchases.

Despite the observed challenges, consumers are bracing themselves for potential further financial pressures, with 31% anticipating this coming Christmas to be pricier than the last. Already, 17% have started saving in preparation.

Esme Harwood, director at Barclays, remarked on the situation, “The rainy weather impacted high street and hospitality venues in August, but Brits were still eager to spend on memorable summer experiences.”

She continued, “Shrinkflation and now skimpflation are mounting concerns for value-seeking shoppers. Nonetheless, the confidence of Britons in their household finances remains firm, indicating a resilience against these inflationary challenges.”

Ele Clark, Which? Retail Editor, said:

“Shoppers might spot a smaller pack size or higher price before they get to the till, but they’re unlikely to notice a recipe change until they’ve bought the product and sampled it.

“Quietly altering recipes to cut costs at a time when many people have a lot less to spend won’t help rebuild dwindling trust in the food sector, so it’s important that manufacturers and supermarkets are upfront about changes to popular products – that way customers can make an informed choice.”

The data for this story was sourced from a comprehensive survey conducted by Opinium, who reached out to 2,000 UK consumers between August 22-25.

 

 

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