As households brace for a cost-of-living crunch this spring, the price of groceries is now 5.2% higher than it was a year ago, with inflation in the past month hitting its highest level in nearly a decade.

Past inflationary events show us how sustained inflation can affect consumer choices. However, the situation is different this time. We are treading into choppy macroeconomic waters as the perfect storm of labour shortages, rising commodity prices and supply chain disruptions makes it harder to navigate forward.

Moreover, the current spike in inflation clashes directly with the release of COVID-19 restrictions, adding to the complexity of the situation. With shoppers evaluating where they shop, how much they buy, and whether to trade down, defer a purchase or even to leave a category altogether, brands and retailers need to better understand these changing needs.

This paper explores the four key takeaways for brands and retailers to consider for building their resilience and finding growth in these challenging times.

inflation report

The inflationary divide

Four key takeaways for FMCG brands and retailers to retain and grow their shopper base
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Four key takeaways for winning in this inflationary environment

Curate bespoke strategies

Irish GMS april

Everyone will face inflation to a degree, but the impact and experience differs greatly among shopper groups. 

Differentiate not discount

Irish GMS

Retailers need to provide a point of differentiation, whether through value or in-store experience to earn shopper loyalty and keep winning their repeat spend.


Stop the compromise or be the compromise

supermarket, basket, shopping, groceries

Brands need to either convince shoppers that their price is worth paying, or purposely become the compromise that shoppers can trade down to.

Stay true to the principles of growth

Focusing on value alone is not enough to deliver growth.