Amid accusations of ‘profiteering’ by supermarkets and manufacturers during the inflation crisis, a new survey suggests that consumer trust in the food industry has dropped to a nine-year low.
Which?’s monthly consumer insight tracker found that trust in the sector fell in May to the lowest it has been since November 2014, with a confidence score of only +36 (on a scale of -100 to +100). This is a drop of 32 points since the previous high of +68 in May 2020.
The findings come as a separate Which? survey of over 2,000 adults in the UK found that two-thirds (67%) feel that supermarkets are “ripping people off” by the prices charged in convenience stores, which are often more expensive than larger outlets.
Three-quarters (75%) said they find the price of convenience store foods too expensive compared to larger supermarkets, and nearly half (45%) struggle to find affordable food in convenience stores.
Half (51%) of those who rely on convenience stores at least once a week were found to be struggling financially with the cost of living crisis – compared to a third (35%) of consumers overall.
When asked by the consumer watchdog if having more budget ranges in stores would help, six in 10 (57%) of those surveyed agreed. Which? has been calling on supermarkets to improve the availability of essential budget options in their convenience stores so consumers, especially those on a low income, are not paying over the odds because they cannot get to a larger supermarket store. It also wants stores to make pricing and offers more transparent so that people can easily work out which products are the best value.
Earlier this month, Which? reported Tesco to the Competition and Markets Authority (CMA) over its alleged failure to provide detailed pricing information on its loyalty card offers.
In Which?’s consumer insight tracker, nearly six in 10 (57%) people said they had bought cheaper items in response to rising food prices. Four in 10 (39%) have bought cheaper items on promotion and four in 10 (40%) have shopped around. One in 10 (11%) have skipped meals, 7% have prioritised meals for other family members, and 4% have used a food bank.
“Trust in the groceries industry has fallen to a nine-year low – with many consumers telling us they feel ripped off by high convenience store prices. People should not have to pay over the odds for everyday essentials just because they struggle to get to a large supermarket,” said Rocio Concha, Which? Director of Policy and Advocacy.
“While the whole food supply chain affects prices, supermarkets have the power to do more to support people who are struggling, including ensuring everyone has easy access to basic, affordable budget ranges at a store near them, including smaller stores for consumers who rely on these.
“Supermarkets must also provide transparent pricing so people can easily work out which products offer the best value.”
NAM implications:
- A key issue for retailers is whether consumer distrust is directed at brands or own-label products.
- Which could become a driver of change in ranging policy…
- But a move to a clear, objective and universal unit-pricing policy…
- …would alleviate some problems.
