An increasing number of Brits are becoming aware of ‘shrinkflation’ and ‘surge pricing’, two methods companies have been using to increase the returns on sales without having to improve the offering.
Shrinkflation, the reduction in the size of products without reducing the price, has re-emerged as a commonplace tactic in the food and drink sector since the cost-of-living crisis began.
Examples include Mars reducing the size of Galaxy chocolate bars last month and Unilever dropping the number of Magnums in a box from four to three.
Now, more than 75% of Brits are aware of this tactic and a little under a a third of shoppers have noticed products have changed their packaging to disguise the reduction in sizes without prices being changed, research from Barclays revealed.
Surge pricing, as has started to be used in Slug & Lettuce pubs, sees prices increased during peak times.
A practice that most people first experienced using the Uber app, where prices for rides leaps during pub and club closing time, is also now being seen in pubs and restaurants, which are upping prices on weekends or during sporting events, and Barclays has found that a little under half of Brits are now aware of this strategy.
Only 8% of respondents said they would be happy to pay extra to dine at busier times, and of those that would, the majority said they would be willing to pay around 70p extra for a pint and 60p more for a glass of wine.
Esme Harwood, director at Barclays, said: “Eagle-eyed shoppers have spotted more examples of 'surge pricing' and 'shrinkflation', and are becoming sceptical about the value of supermarket loyalty schemes. Consumers are also starting to pull back their spending in some non-essential areas, so that they can put more money aside for the festive season.”