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Almost a third of shoppers feel less financially secure now - KPMG Retail Survey

Almost a third of Irish shoppers feel less financially secure now compared to the start of the year, according to new research from KPMG.

The latest KPMG Next Gen Retail Survey also found that over half say getting the best price is the main priority for them when deciding where to shop.

The survey was conducted by Red C between 3 - 9 April 2025, after US tariff announcements on 2 April.

The research highlights significant financial pressure that Irish consumers are under, and a risk of further consumer price pressure as the impact of tariffs take effect.

"Financial uncertainty could be compounded by increased trade headwinds depending on the form of the threatened tariff changes," said Head of Consumer, Retail & Manufacturing at KPMG David O'Kelly.

"This dynamic creates a clear challenge to Ireland's retailers to optimise their supply chains and cost structures to maintain competitiveness. The retail sector has adapted to significant change in the past and no doubt will use the tools available to pivot again."

Over half (54%) of those surveyed said they are buying less items to save money and modify their household budgets, an increase from 50% in October 2024.

Mr O'Kelly said the younger cohort (18-24 year olds) were very price focused when it came to seeking out the best price or value for money.

"Price is the number one thing going for young people going shopping," said Mr O'Kelly.

"Then my own cohort, middle-aged with family as you can imagine with inflation and food inflation, that's a cohort that has seen the weekly bill go up quite a bit, they shop around for deals too.

"What's interesting though if you look into that, they tend to look for more recurring value with store cards or loyalty cards as opposed to the younger cohort who tend to be less brand loyal, they just buy whatever's cheapest."

Consumer behaviour shows little change, with physical stores continuing to be the preferred channel for essential categories. A significant 85% of Irish adults still purchase groceries primarily in-store.

Nearly 3 in 5 (59%) think the experience of shopping in-person will never be matched by online shopping.

Despite this, online shopping continues to grow, with 50% of respondents considering it generally cheaper than in-store options, compared to 51% last year.

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% among 18-24-year-olds.