Two fifths of Irish people are shopping around to navigate inflation and supply issues

Many respondents to PwC's Consumer Insights Survey expect rising prices to remain a challenge for at least six months more

Overall, rising prices for groceries is the greatest issue impacting the shopping experience, according to Irish consumers who took part in the survey.

Irish shoppers are seeing supply chain issues hit shelves as nearly 50% of consumers that took part in a survey said they were unable to buy an item in-store as it was out of stock.

Half of the Irish respondents to the PwC Ireland’s latest Consumer Insights Survey also said they faced supply issues when shopping online. These issues included products taking longer than expected to be delivered.

“Retailers and manufacturers must move quickly to meet shifting demand and their own inflation and supply chain pressures,” said John Dillon, leader of PwC Ireland retail and consumer practice. "We don’t see these pressures easing any time soon."

The survey is a biannual study and this latest one had over 9,000 consumers participate across 25 territories, including 504 consumers in Ireland. The fieldwork for the survey took place in March 2022 and all respondents were at least 18 years old.

Over 40% of the Irish participants said they are navigating supply chain problems and inflation by shopping at different retailers to meet their needs, while 31% are using comparison websites to check product availability.

Nearly a third of Irish online consumers say they are switching to in-store shopping to better meet their needs. While 22% of Irish participants that are usually in-store shoppers switched to online.

“Agile businesses that can manage through multiple disruptions while keeping their focus on the demands of their customers are in the best position to succeed in this tumultuous environment,” said Mr Dillon.

Overall, rising prices for groceries is the greatest issue impacting the shopping experience, according to consumers that took part in the survey.

While consumers are battling supply chain issues, the vast majority are also experiencing the impact of inflation. Nearly 100% of Irish respondents to the survey said that recent price increases are impacting their ability to buy goods.

Despite higher prices, spending on a number of categories is still set to increase over the next six months, according to the survey.

In addition, Irish respondents to the survey said they are willing to pay more for sustainable products. Most Irish consumers will pay a higher than average price for products that are recycled, sustainable or eco-friendly, the survey found.

Due to the increase in prices, the survey predicted that more Irish consumers will shop locally in the next six months compared to global counterparts.

Geopolitical uncertainties and supply chain issues are the main drivers pushing Irish consumers to shop local, the survey found. Nearly 80% of Irish consumers expressed a willingness to pay a higher than average price for products produced locally or domestically.

Many of the Irish survey participants are expecting these high prices to linger for some time as 44% expect inflation to remain a challenge for at least the next 6 months.

Over 50% of the Irish respondents expect to spend more on groceries in the next six months, while 52% expect to spend more on travel and 45% expect to spend more in restaurants and bars.

However, more than a quarter of Irish consumers plan to reduce spending in a number of categories, including luxury and premium goods, takeaway food, virtual and online activities, and fashion.

The plan to reduce spending on clothes is a clear indication of the impact of inflation, as earlier this year there were significant annual increases in sales volume of clothing and footwear, which rose by 271%. Department stores also experienced a 81% increase.

However, these CSO figures are compared to sales volumes in March 2021, when Ireland was under lockdown due to Covid-19, therefore spending was low.