THE head of Asda has said that customers are changing their spending habits as inflation soars.
Speaking to Radio 4’s Today Programme, Lord Stuart Rose said that he is seeing a “massive change in behaviour" as customers respond to recent price hikes.
“People are scaling back, they are worried about their spending, they have got a limit they set out to, they say £30 is my limit and if they get to more than £30 stop. It’s the same with petrol, same everywhere.”
Lord Rose is calling on the Government to do more for low-income families as food price inflation hit a 13-year high on Tuesday.
“I’m of the generation that remembers what it was like last time,” he said, referring to the Great Inflation of the 1970s, “once [inflation] gets hold, it’s quite pernicious … It takes a long time to eradicate… We’re in danger of being in a place that it’s very difficult to extricate ourselves from.”
He added: “This is the first time consumers have seen significant inflation for nearly 30-40 years and it’s come as a surprise, it’s come as a very nasty surprise.”
Lord Rose suggested that a VAT reduction could benefit his customers during the cost-of-living crisis.
Research from Kantar found that supermarket sales fell by 1.9 per cent during the twelve weeks to 12 June 2022.
A recent report found that the annual grocery bill is on course to rise by £380. This is £100 more than they reported in April, showing how sharp price increases have been in recent months.
Kantar data for the same period shows that shoppers are increasingly turning to low-cost, own brand products to stay within budget. Branded product sales declined by 1 per cent whilst value range alternatives grew by 12 per cent.
