The Inflationary Divide

Four key takeaways for FMCG brands and retailers to retain and grow their shopper base in this inflationary environment
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Inflationary divide
Andrew Walker

Director, Client Knowledge, Worldpanel Division, UK

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As households brace for a cost-of-living crunch this spring, the price of groceries is now 5.2% higher than it was a year ago, with inflation in the past month hitting its highest level in nearly a decade. Past inflationary events show us how sustained inflation can affect consumer choices. However, the situation is different this time. We are treading into choppy macroeconomic waters as the perfect storm of labour shortages, rising commodity prices and supply chain disruptions makes it harder to navigate forward.

Moreover, the current spike in grocery inflation clashes directly with the release of COVID-19 restrictions, adding to the complexity of the situation. With shoppers evaluating where they shop, how much they buy, and whether to trade down, defer a purchase or even to leave a category altogether, brands and retailers need to better understand these changing needs.

This paper explores the four key takeaways for brands and retailers to consider for building their resilience and finding growth in these challenging times.

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