• 56% of shoppers have changed supermarket habits by switching their main store or mixing stores to buy cheaper items
• Aldi and Lidl are the main winners, with 49% and 42% of consumers saying they now used the stores
• Just 14% of those that have changed their shopping habits said they would return to solely using their previously preferred store once food price inflation has come down

Over half of British consumers have changed their supermarket shopping habits in the face of rising food price inflation, Paragon Bank research has revealed.

The survey of over 1,750 consumers found that 12% of people have switched their supermarket for their main weekly shop over the past six months, with 37% maintaining their preferred supermarket for their main shop but using cheaper stores for specific items.

An additional 6% said they maintained their main store but now purchased certain items from online retailers such as Amazon as they were cheaper than in-store.

The biggest winners of the great supermarket switch were Aldi and Lidl, with 49% and 42% of consumers saying they now used the stores, compared to 23% and 21% six months ago. Other stores that experienced an increase included the Co-op (12% to 14%) and Iceland (7% to 12%).

Conversely, the percentage of shoppers using high-end supermarkets Marks & Spencer and Waitrose fell. Just under a quarter (23%) of consumers use M&S today for food shopping, compared to 29% six months ago, with Waitrose falling from 27% to 20%.

Other supermarkets that recorded a fall were Sainsbury’s (44% to 42%) and Morrisons (28% to 25%). Meanwhile, the most popular supermarket, Tesco, saw its position strengthen, increasing from 49% of shoppers using the store six months ago to 53% today.

Price was the overwhelming driver of shoppers switching supermarkets, cited by 71% of consumers, followed by location (20%) and stock availability (19%). Other factors that drove shoppers to switch supermarkets included convenience (14%), quality of special offers (13%) and loyalty schemes (11%).

Additionally, consumers have signalled the shift in supermarket usage will be permanent. Just 14% of those that have changed their shopping habits said they would return to using their previously preferred store once food price inflation has come down, with 72% stating they will continue to mix their shopping between different stores.

Meanwhile, 14% said they have permanently changed their preferred supermarket brand.

Derek Sprawling, Paragon Bank Savings Director, said: “With household budgets coming under pressure due to rising inflation, it’s a natural consequence that consumers will seek out the best deals and adopt a proactive approach to their finances. A clear trend over the past six months has been for shoppers to mix and match their choice of store to maximise value, and that looks set to continue even when inflation starts to subside.”

He added: “I’d like to see people take the same approach to their finances and ensure they are making their money work as hard as they can. Too many people leave their savings in poor-paying accounts, or even in their current account earning no interest. Shopping around for the best rates can result in hundreds of pounds more in interest.” 

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank
07740090746
www.paragonbank.co.uk 

Notes to editors:

Paragon Bank PLC is a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.