Consumers are changing their habits to tackle the cost of living challenges, with the vast majority planning to adopt cost-saving behaviours over the next six months.
PwC's latest Irish Consumer Insights Pulse survey shows that almost half of Irish consumers report that they are extremely or very concerned about their personal financial situation.
Over three-quarters said that they have changed their non-essential spending, including 15% who have stopped non-essential spending altogether.
Irish consumers are searching for value, with 60% saying they intend to buy retailers' own brand products; 59% intend to shop with retailers offering better value; 55% will buy certain products only when they are on promotion or special offer.
John Dillon, Leader, PwC Ireland Retail & Consumer Practice, said 2022 was a challenging year for consumers with growing inflation, higher fuel bills and rising interest rates.
"The new research highlights a heightened level of concern across Irish consumers. They are also very clear about the actions they will take to manage their budgets," he said.
"For retailers to thrive in this challenging environment and maintain consumer engagement, they must remain focused on delivering value to the consumer, invest in the in-store customer experience and ensure their omni-channel propositions deliver a frictionless customer centric experience," he added.
Despite many Irish consumers not feeling confident about their personal financial situation, they are still willing to pay a higher than average price for sustainable product types.
Overwhelmingly, 77% are willing to pay a higher than average price for a product that is produced/sourced locally; made from recycled, sustainable or eco-friendly materials, produced by a company with a reputation for ethical practices.
Similar to global trends, in-store shopping has remained the most popular shopping channel in Ireland - 47% of Irish consumers shopped in-store weekly or daily over the last year.
Over half prefer to check the product is not faulty/the correct item; a similar proportion said that they enjoy shopping in-store having missed doing so during the lockdowns.
The most appealing in-store attributes are the ability to use self checkout, knowledgeable and helpful sales assistants and click and collect services. Nearly a quarter reported that they will increase their in-store shopping over the next six months.
22% of Irish consumers shopped weekly or daily via smartphones over the last year. Only 5% of Irish consumers shopped via smart home voice assistance compared to 13% globally.
At the same time, consumers are increasingly conscious of data privacy as they shop online.
Retailers score more favourably which may indicate that they perform comparatively better than social media platforms because the return for consumers on providing data is clearer and more transparent, in the form of vouchers, discounts and special offers.
