Financial insecurity has reached a new high, according to a new survey from KPMG.
KMPG’s latest Next Gen Retail survey was conducted in the second half of March and while this was relatively early in the US-Iran conflict, it is clear that it is was already weighing on consumers’ minds.
The survey reveals that 38% of Irish adults feel less financially secure compared to the start of the year – highest level since KPMG began tracking retail sentiment.
KMPG said the increase in financial insecurity is not evenly distributed, with women significantly more affected than men, with 43% of women now feeling less financially secure compared to 33% of men.
It also noted that the 35-54 age group – the ‘squeezed middle’ – emerges as the cohort under the most acute financial pressure, with 42% of them feeling less financially secure.
“This group is also the most price-sensitive when choosing where to shop, prioritising getting the best price above all other factors. With mortgage costs, childcare expenses and the general cost of living converging on this demographic, the commercial implications for retailers targeting these age groups are significant,” KMPG said.
Meanwhile, 55% of shoppers say getting the best price is the single most important factor when deciding where to shop, and at 89% value for money continues to dominate when consumers think of their favourite retailers.
57% also believe it is generally cheaper to buy products online than in-store, there remains opportunity for the channel to grow as price sensitivity rises.
But barriers to online conversion remain significant with 43% sometimes abandoning online transactions because of complicated or lengthy website navigation and payment forms, while 52% say they find online product returns processes confusing.
David O’Kelly, Head of Consumer, Retail & Manufacturing at KPMG, said that financial pressures have intensified, but consumers are adapting by seeking value, using loyalty, and switching channels to suit their needs.
“Retailers that combine fair prices with trusted experiences, seamless digital, and in‑store options that match different preferences will be best placed to retain and win customers,” he said.
“On the in-store experience, a clear and commercially significant age divide has emerged: preference for in-store staff assistance increases with age, while preference for self-service checkout kiosks follows the exact opposite pattern,” he noted.
“The majority (70%) of shoppers agree that retailers must provide both an excellent online user experience alongside an attractive in-store offering, up from 65% in 2025,” he added
