Quarter of customers switched supermarket

A quarter of customers changed the supermarket where they do their main shop in the last 12 months, as Irish people gradually begin to vote with their feet for better value.

A study into the switching behaviour of consumers carried out by the National Consumer Agency (NCA) found that switching is highest in the grocery sector with 26% of consumers having switched where they do their main grocery shop and 20% changing where they do their top-up grocery shop in the past year.

This is followed by car insurance (23%), utility companies (electricity 16% and gas 16%) and broadband provider (14%).

The research shows that the majority of those who shopped around and switched providers saved money across insurance (car, health, and home), utilities (telephone, gas, and electricity), mobile telephones, TV and broadband provider.

The NCA found that the average monthly saving resulting from switching is in the range of €15 to €20 per sector but tends to be higher in health insurance where the average saving is €42.

The research found that more than one third of consumers (37%) said they ‘tend to stick to the same companies’ — a decrease of 7% on last year’s research,

Some 27% of consumers stated that they ‘change companies often and avail of better deals whenever they can’ — up 4% on the corresponding research last year.

NCA chief executive Karen O’Leary said that while the results of the research were encouraging, a large number of consumers to stick with the same provider.

“More consumers are aware that shopping around and switching providers can save them money. However there is still a large level of inertia amongst consumers with large numbers of consumers sticking with the same provider. This is surprising, given the pressures on people’s income and the fact that the majority of those who switched did, in fact, save money,” she said.

The study found that many consumers view switching as a hassle and do not make fully informed decisions by checking prices, with a significant number never checking to see if a better deal is available. For example, 48% of those who have not switched gas provider had never checked to see if a better deal was on offer. The corresponding figures for electricity and fixed landline provider were 45% and 41%, respectively.

“Switching may not be as difficult as you think. In recent years, it has become a much simpler process... Staying with the same provider is not in itself a bad thing, providing you make the decision on an informed basis,” said Ms O’Leary.