A large majority of Irish consumers (70%) still prefer in-person shopping for essentials.
83% favour physical stores for fresh food, while 74% prefer them for personal care items.
These are some of the findings of the 15th edition of the EY Future Consumer Index, which surveyed more than 20,000 consumers across 26 countries, including more than 500 here in Ireland.
It is absolutely fair to say that any talk of the demise of bricks and mortar is definitely not true, particularly here in Ireland, according to Colette Devey, EY Ireland Consumer Sector Lead.
“Physical retail remains particularly strong and it’s not just out of habit and convenience. What we see here is a real emotional and practical value, local physical stores are very much seen as the cornerstone of of the community.”
This report is released twice a year and aims to take a pulse of consumer sentiment to track how its evolving and provide insights for retailers and consumer businesses.
It found that the sustained rise in the cost of living over recent years has reshaped how Irish consumers shop, spend and seek value.
“Our findings highlight very consistently with the results from this week’s CSO results which showed that food inflation is running at about 3% year on year,” said Ms Devey.
“Price is the number one purchase consideration, notably in fresh food but also in categories like clothing and footwear and what that is driving is a real shift in shopping habits to secure best value.
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“So that is either an indication that consumers are heading to the discounters, over 50% of Irish consumer, we’re seeing them hold out for sales or join loyalty programs looking to get discounts and reduced pricing and we’re also seeing a more persistent shift from branded product to own label.”
The research shows that budget sensitivity has shifted the perception of ‘own brand’ products in Ireland too.
Almost eight in ten consumers say store’s own labels are just as good as branded products.
Once seen as the second choice on shelves Irish consumers are more likely than the average global shopper to say that own label goods meet their needs just as well as branded products.
While close to half of shoppers are using discount shops to make budgets go further.
Ms Devey sees this approach to shopping and looking for best value continuing, even if the cost of living stabilises, but especially in the face of global uncertainty surrounding tariffs.
“I think people are always looking for value and they’re trying to balance that affordability and quality point.
“I think what we have seen recently is, particularly with the shift to own brand, that’s not just a perception, that’s a reality and retailers are seeing that.
“When I’m out speaking to my clients we’re having extensive conversations around what this means for them and they’ve really upped the range and the quality of private products and the and the branding and packaging around that as a result.”
