Inflation entered Poland in small steps in 2021 to gain momentum in 2022. The increase in prices was felt by practically everyone. Persistently high inflation has had an impact on Poles' spending and everyday life. How has their approach to spending changed and what changes have you seen in shopping preferences?

Inflation is not just a local trend

Inflation and the financial crisis are phenomena that have appeared throughout the post-pandemic world. Citizens of many countries admitted that from 2022 they felt a decrease in income and a deterioration of their financial situation, although the inflation situation is not uniform everywhere and varies widely, even in Europe itself. Importantly, however, a large proportion of Europeans do not believe in a rapid improvement in the economic situation and rather expect a further decline in income.

Poles describe their economic situation as difficult (for more than half of Polish citizens, the increase in prices is simply severe). The increase in prices of products meeting basic living needs, such as groceries, hygiene products, electricity and gas, was the most noticeable. This translated into a further increase in prices in other sectors, including services. And although - as the statistics show - inflation is slowly slowing down, Poles have not yet felt it in their wallets. However, basic living needs must be met. How are Poles doing and how have their shopping habits changed?

Changes in the shopping habits of Poles

Changes in the shopping habits of Poles were examined by the YouGov agency, which prepared the report "How do we buy in times of inflation?". This study allowed to show current trends and novelties in the approaches to purchasing goods in times of high prices.

As the survey shows, the majority of Poles (84%) usually do their groceries in discount stores. As many as 23% of all respondents admitted that they shop in this place more often than last year. A large number of people also buy food in large hypermarkets (59%), however, there is a noticeable decrease in the clientele here - as many as 24% of respondents admitted that they visit large stores less often than last year. The remaining respondents indicated that they go for groceries to smaller supermarkets (44%), local shops that are not any "chains" (39%), local chain stores (39%) and to the bazaar or marketplace (36%). When it comes to grocery shopping, the fewest respondents do it online (only 24%), although there is an interesting trend here, and it is the largest increase in the number of buyers compared to the previous year (as much as 34%). Does this indicate the gradual development of online grocery shopping?

And what changes can be observed in terms of buying style? First of all, Poles have started to pay more attention to promotion (up by 33%) and are ready to either plan meals made from discounted products or buy more of these goods if they find them at a bargain price. Price awareness has also increased: a greater number of people (an increase of 24% compared to the previous year) compare the price offers of various stores (e.g. by analyzing leaflets or an offer on the Internet) and make purchases where prices for given goods are lower. Poles' grocery shopping is also becoming more and more thoughtful: an increasing number of people (also an increase of 24%) make a shopping list and try to follow it strictly. However, the number of so-called spontaneous or unplanned purchases. Poles are also willing to buy cheaper substitutes of previously selected products or buy their favorite goods less often than before.

What do these changes mean for traders?

Changes in the shopping preferences of Poles have an impact on traders - those selling goods wholesale and retail. It can be said that discount stores and their own brands, which are often more attractive in price than other products, benefit most from the inflationary purchases of Poles. However, there is no denying that inflation is also a challenge for traders: they must closely monitor changes in consumer shopping preferences and try to adapt to them as efficiently as possible. They also cannot indefinitely raise the prices of products, because in the end consumers will not be able to afford them. The whole situation has its impact not only on pricing policy, but also on marketing strategies.

So what works best in times of inflation? As it turns out, discounters focus on providing consumers with ready-made products and snacks (replacing catering services), more often there are promotions and sales that do not look attractive compared to the regular store offer and attract buyers.

How does consumer behavior change during inflation?

During inflation, people often adjust their purchases and change the way they spend their money. Inflation leads to a decrease in the purchasing power of a currency, which means that the same amounts of money can no longer buy the same amount of goods and services as before. There are a few typical "inflationary" behaviors that are uniform throughout the world:

  1. Saving on luxury items: During inflation, people tend to cut back on luxury goods and services to focus on basic necessities. They give up expensive brands, exclusive holidays or new electronic gadgets, which is also clearly visible in Polish consumers.
  2. Shift to cheaper brands and products: Rising prices are driving consumers to look for cheaper options. People can compare the prices of different brands and choose the more affordable ones. Greater attention is focused on promotions and discounts. As research shows, it is this phenomenon that is dominant in Poland.
  3. Investing in durable goods: A rise in prices can induce people to buy durable goods such as real estate, gold or other valuables. People believe that the purchase of such goods will secure the value of their wealth when the purchasing power of money declines.
  4. Increasing Savings: Inflation causes money to lose value, so people can start saving more. This may mean cutting back on essentials and investing in savings, bonds or other safe financial instruments. In reality, however, saving during inflation can be very difficult.
  5. Stock up: To avoid future price increases, some consumers may choose to stock up. They buy larger quantities of products that can be stored for a longer period. Examples include long-term food, household items or fuel.
  6. Searching for alternative sources: Rising prices can lead people to look for alternative sources of goods and services. For example, they may seek out cheap grocery stores, local markets, or even consider growing their own vegetables and fruits in the garden.