A recent study has highlighted a significant surge in Brits’ financial consciousness, at a time when financial trends such as ‘loud budgeting’ and ‘girl maths’ are becoming increasingly mainstream in pop culture. The study by Ocado – which launched both its Big Price Drop and Ocado Price Promise value initiatives over the last 12 months – revealed that over three quarters of the nation (77%) believe they’re more savvy with their money now than they were before the start of the Cost of Living Crisis.
Whilst four in five Brits (83%) actively seek good deals on everyday groceries, the new data shows that this motivation extends beyond the benefits of cost-cutting alone. For over half of respondents (57%), proactively looking to make savings through cheaper own-brand products and everyday essentials means they can allocate small amounts to little luxuries in that same shop, in a form of strategic self-indulgence.
Consumer psychologist Kate Nightingale believes that this pleasure-seeking approach to shopping and savings is a result of an evolving society. Kate comments: ‘’In a time of economic uncertainty, human behaviour has shifted to focus on short term rewards to gain a sense of control over our everyday lives. When it comes to grocery shopping, we are a nation of ‘Fluxury Shoppers’ – where customers buying decisions enter a state of flux, saving in one area to spend in another to provide little bits of joy here and there.”
The research also reveals the main reasons people give for adding small luxuries to their shopping basket, including wanting to treat themselves (37%), to make their partner happy (27%) and because they feel justified doing so, having saved money elsewhere (20%).
Nightingale explains: ‘’Fluxury Shoppers aren’t impulsive, they’re tactical. They make clever choices in their everyday shopping to reallocate their savings to their desired ‘little luxury’. They act as a reward for making clever choices with our everyday shopping habits.“
In fact, almost half of Brits (48%) agreed they intentionally look for good deals and then buy little luxuries as a form of retail therapy, with 84% admitting to purchasing ‘small treats’ when grocery shopping.
Nightingale continues: ‘’Small wins followed by little rewards are the best combination to motivate us to reinforce the habit. Both small wins and ‘little luxuries’ as rewards are also a brilliant wellbeing enhancer, often more impactful than big one-off experiences or extravagant purchases. By making small savings and rewarding ourselves with little luxuries, the average shopper gains a wider sense of control over their finances.’’
The top ways the nation is trying to be financially savvier and make savings include making meals at home instead of buying them on-the-go (57%) and buying own-brand or value range groceries (55%), with Ocado customers even more likely to have swapped own brand items into their shopping baskets in a bid to save money (65%). Two in three (65%) Brits even say they’re likely to invest additional time on their shop to ensure they secure a good deal, with a quarter (26%) of those investing more than half an hour extra.
Laura Harricks, chief customer officer at Ocado, commented: “We can all relate to the pride we feel when we’ve been clever with our money and got a great deal on our shopping. Value is incredibly important to Ocado customers, but as the rise of ‘fluxury shopping’ demonstrates, it’s not a one-size-fits-all concept and as a nation we’re being increasingly strategic with how we allocate our weekly shopping spend. With Ocado Price Promise – which price-matches your Ocado shop to Tesco.com on over 10,000 items – Big Price Drop and our own brand range, customers looking for brilliant value basics (and beyond) are well served by Ocado, whether or not they choose to include a little treat or two. They also get a bit of time back too – perhaps the greatest luxury of all!”
According to Ocado data, the top categories oof little luxury added to baskets by shoppers included chilled and hot desserts, followed by ice cream and confectionery. Other treats that made it into the top ten included sparkling wine, gin and skincare.
Top 10 little luxuries according to Ocado basket data:
- Chilled and hot desserts
- Ice cream
- Confectionery (sweets/chocolate)
- Organic/premium meat (duck, chicken, beef)
- Sparkling wine
- Gin
- Liqueurs
- Whisky
- Skincare
- Vodka
Ocado is price-matched to Tesco.com on over 10,000 items, including promotions and Clubcard prices – if an Ocado shop is not the same price or less, customers will receive a voucher for the difference within 72 hours. Ocado has also reduced the prices of more than 3,000 products since June 2023, as part of its Big Price Drop.
