Next Gen Retail Vol. 8

Irish adults are actively modifying their shopping behaviours to manage household budgets with over half (54 percent) buying less items to save money, an increase from 50 percent in October 2024.

Making more frequent use of retailer loyalty schemes to get lower prices (48 percent), actively seeking out products on promotions or discounts (47 percent), buying more own-brand or value products (44 percent) or cancelling monthly subscriptions (33 percent) are the main saving methods.

The report reveals that females are notably more likely than men to implement various cost-saving measures. 

Physical stores still preferred for essentials

Consumer behaviour shows little change, with physical stores continuing to be the preferred channel for essential categories.

A significant 85 percent of Irish adults still purchase groceries primarily in-store, a figure that has remained stable over the past year. Furthermore, nearly two-thirds (62 percent) of consumers prefer shopping in physical stores because they can touch and see the products before buying, underlining the importance of brick-and-mortar retail and the value of excellent in-store customer service

Attitudes to online shopping remain stable

Similar to 2024, over a third (37 percent) buy products online, 32 percent buy products in a physical store after researching them online before or during the store visit and 1 in 5 (18 percent) buy products through click-and-collect.

Online shopping continues to grow, with 50 percent of respondents considering it generally cheaper than in-store options, compared to 51 percent last year.

However, complex return processes remain a significant barrier, with nearly half (45 percent) sometimes abandoning online transactions due to complicated or lengthy website navigation and payment forms.

Over a quarter (27 percent) would consider buy now, pay later services like Klarna and Humm to complete a purchase, both online and in-store, with buy now, pay later services strongly considered among 18-24s and 35-44s.

The online shopping landscape is also being shaped by new entrants. Notably, 1 in 5 report they will shop online more often due to the launch of Amazon.ie in March, a figure that rises to 42 percent among 18-24-year-olds.

Loyalty and discounts matter

Loyalty schemes and discounts continue to significantly influence consumer behaviour. Two in five report that discounts play a crucial role in their shopping decisions, with the 18-24 and 35-54 age groups placing even higher importance on these savings.

Nearly 3 in 5 (57 percent) indicate that loyalty schemes drive their choice of retailer, with these programmes having a particularly strong impact on younger shoppers when deciding where to shop.

Sustainability remains relevant

Consumers still feel brands and retailers alike have a bigger role to play in sustainability in Ireland, with 62 percent believing retailers should offer incentives or discounts to customers for choosing eco-friendly or circular economy products.

However, there is growing scepticism, with over half (55 percent) of Irish adults increasingly doubtful about the sustainability claims made by brands and retailers. While a majority (81 percent) have participated in the Deposit Return Scheme, only a small fraction (28 percent) is willing to pay a higher price for sustainably produced goods.

David O’Kelly, said: “The call for sustainability is both clear and demanding for brands and retailers. Consumers are not only expecting action but transparency too. This finding also highlights the challenge about who should carry the cost of greening the supply chain.  Doubtless some retailers have made significant changes, and it will take all parts of the chain from producer to consumer to achieve a sustainable outcome.”