Inflation is a topic that has been making headlines recently. The media keeps talking about it, as it affects – directly and indirectly – all areas of our lives.
And how does inflation affect the shopping habits of Poles? Today we will look at this question. This will be the next article in a series devoted to how the inhabitants of the land between the Oder and Bug rivers consume various types of products.
We have already mentioned how Poles drink their coffee and described changes in the Polish tobacco market. So, let’s see how the new economic situation is shaping our shopping trollies!
Pandemic, war, inflation
“May you live in interesting times” – this Chinese proverb reflects well the conditions in which we have been operating for some time now.
The last few years have brought us a series of events that have turned our lives upside down.
The first was the COVID-19 pandemic, which changed the way we look at our professional work. It turned out that it was also possible to work effectively from home, and those employers who did not want to come to terms with this fact had to accept that some of their employees started to look for other income opportunities.
The epidemic has also made some of us more willing to shop on the Internet and life has moved largely online.
Then came the war in Ukraine, which robbed us of the sense of security and relative stability we had previously enjoyed. The flood of refugees from across our eastern border showed us how little it takes to lose everything we have worked for all our lives.
Although the war has not directly affected how much we spend, it has changed our perception of brands. Today, Poles are more likely to choose those companies that support the efforts of the Ukrainians fighting for their freedom and boycott those businesses that have not decided to leave the Russian market.
One of the consequences of the war in Ukraine is also inflation – although, of course, the situation of our eastern neighbor is not the only reason for the soaring price levels in the economy. Month on month, our money has lost value, which has translated into the way we shop.
But how exactly?
Poles’ shopping habits in times of inflation
The ‘Monitoring Lifestyle Changes’ survey conducted by the Mindshare agency has shown that inflation affects Poles more than it did during the pandemic. The COVID-19 epidemic had a significant impact on the lives of around 55% of us, while rising prices affected as many as 71% of Poles.
66% of consumers surveyed admitted that inflation had forced them to plan their purchases more carefully. During the pandemic, 46% of Poles did so. We are also paying attention to discounted products more often.
But there is a good side to this situation.
It turns out that better meal planning translates into healthier eating! This change was highlighted by more than half of those surveyed.
More often, but less
Another effect of better shopping planning is that we go shopping more often. A study of more than 1 million Poles by the company and analytics platform UCE Research found that, compared to 2022, in 2023 the frequency with which we shop increased by more than 10 per cent.
There is a reason for this attitude: we ‘hunt’ for promotions more often, which forces us to visit the shops more regularly. We also try not to buy in advance to save money.
Consequently, the shops we visit most often are discount stores, which offer the best prices for the products we reach for most often. As many as 88% of us use this type of outlet!
Giving up pleasures
Inflation has also changed our approach to entertainment consumption. The results of the survey “Consumption in a high inflation environment”, conducted by the Think! Foundation and ING Bank Śląski, show that more than 62% of us spend less on culture, household appliances and home furnishings and electronics. More than 50% have revised up their spending on leisure, sport and wellness services. Unfortunately, 43% of Poles have also cut spending on education and even medical treatment.
Buying smarter
When it comes to the purchase of non-essential products, we have seen changes here too. As a result of the turbulence in the economy and household budgets, we have started to spend our money more sensibly. The most principal factors for Poles today are the price and the usefulness of the product – indicated respectively by about 50% and more than 40% of respondents.
We have also started to pay less attention to whether the product we choose is fashionable and where it was produced.
Instead, we have started to think harder about every purchase and to look for arguments for choosing a particular product. We are also comparing prices more readily than we were before inflation.
Unsurprisingly, more than 50 per cent of those surveyed admit to waiting until the price is reduced before making a purchase. We are also more willing to use discount coupons and loyalty programmes.
More than 30% of Poles are looking for second-hand products more often than before, and as many as 7% have started to do so since inflation became an issue.
Interestingly, the changes in question are perceived as permanent by as many as 30% of us! Does this mean that the Polish shopping landscape has been permanently reorganized?
We’ll see!
Perfecta to the rescue!
All the indications are that high inflation will stay with us for longer. What, then, should a manager of a retail outlet (especially one that is not a discount shop) do to enable his customers to shop as cheaply as possible and his shop to maintain turnover?
As a producer of retail furniture, Perfecta has several solutions.
The first is to invest in modern and energy-efficient shelving. The retail furniture we produce is fitted with Eco LED lighting, using ⅓ less electricity while maintaining similar light performance.
Another is to increase the product range. This can be done using Perfecta free-standing retail displays. They can be placed anywhere, and their modularity and availability of accessories make them easy to adapt to the specific type of product.
A third solution is to bet on impulse sales. It is worth knowing that the habit of buyers that favors impulse buying is the frequency of purchases. We buy more compulsively if we shop more frequently – as in the age of inflation!
As you can see, inflation is a problem, but also an opportunity.
An opportunity for consumers to learn to spend more occasionally and an opportunity for managers to make their outlets more economical and customer friendly.
