Consumers are becoming more cautious about spending amid rising prices


May 4, 2023 | By Rupkatha B

As inflation bites…grocery retail

Rising prices rated as the biggest issue for 34% of in-store shoppers and 27% of online shoppers. Consumers are becoming more cautious about spending amid rising prices and 62% intend to adopt cost-saving behaviours.

Consumers in the Middle East and other parts of the world are basing their shopping behaviours on two main factors, high inflation and high cost of living. As supply chain disruptions are also being witnessed in the consumer industry, shoppers in the Middle East are finding new alternative ways to purchase goods, while keeping a close monitor on their finances and spending.

Three key themes are being witnessed among consumers in the Middle East:

Higher prices and supply chain delays hinder sales: Rising prices for household goods were the top concern for 40% of respondents in Egypt, 35% in Saudi Arabia and 28% in the UAE. Larger queues, longer delivery time and reduced product quality and availability all prove to be other significant issues regional consumers frequently experience.

Consumer habits are changing in response to higher prices: Shoppers expect to spend mainly on groceries (47%), fashion (40%) and consumer electronics (36%) over the next six months. Consumers are becoming more cautious about spending on luxury, home entertainment and virtual activities and increasingly looking for promotions, with more than 40% of regional and global consumers buying only products at ‘offer prices’ and seeking to buy from retailers who offer better value.

Multiple sales routes in a smarter retail world: Online shopping continues to go from strength to strength, but in-store shopping continues to play a key role. There is also an emerging minority who use VR for shopping, browsing virtual stores and testing products. However, regional consumers are seen to be concerned about the privacy of their data, with social media and website usage (40%) causing great concern. Close to half of regional consumers said they don’t share any more personal data than is necessary and this is the key action taken to address their data privacy concerns.

Amid changing consumer behaviour, retailers need to confront supply chain disruptions and online and in-store frictions that interrupt the seamless experience that tech-savvy hybrid consumers increasingly expect. Retailers are increasingly expected to provide smart solutions that offer consumers a better and more convenient shopping experience and fuse the digital and physical worlds.

Findings from PwC Middle East’s Global Consumer Insights Survey – Pulse 5, ‘Inflation and rising prices shape a new hybrid Middle East consumer’.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Rajiv Warrier, Chief Executive Officer, Choithrams

Since the launch of its first store in the UAE five decades 

Continue Reading

March 20, 2024 | By RetailME Bureau
Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau
Majid Al Futtaim Retail commits to Collaborative Impact Goals at COP28

Majid Al Futtaim Retail, which owns the exclusive rights to operate Carrefour 

Continue Reading

December 8, 2023 | By Rupkatha B
BinDawood Holding Company earns Honorary Shield for Compliance Excellence

BinDawood Holding Company has earned an Honorary Shield, a distinguished recognition by 

Continue Reading

December 6, 2023 | By RetailME Bureau
First Movers Coalition for Food to create up to $20-bn value chain for sustainable farming

The World Economic Forum, with support from the Government of the United 

Continue Reading

December 5, 2023 | By RetailME Bureau




Download Images RetailME Magazine