Business experts in Nottingham say shoppers are choosing own-brand products in the search for cheaper ways to shop.

The UK economy is set to shrink in 2023 and perform worse than other advanced economies, as the cost of living crisis continues to hit households, according to the International Monetary Fund.

Major events such as Brexit and the conflict in Ukraine have impacted the UK. The rise in energy bills to heat homes, has left many people feeling the pressures of increasing bills and money worries.

According to the Office of National Statistics the price of food products have risen by 16.5% in the last year. This leaves households facing an increase of £800 to their annual food bills.

Research shows shoppers are switching away from branded products and are opting for supermarkets’ own-brand alternatives in a bid save money at the till and reduce the cost of weekly groceries.

“I’m just so worried, I see no end in the energy bills going up.”

Amanda Woollsey, Homeowner

Amanda Woollsey, a homeowner in Nottinghamshire, has faced increased anxiety as she is concerned, and “sees no end in the energy bills going up”.

The IMF have said the economy will decrease by 0.6% in 2023, rather than growing slightly as previously predicted, with UK expected to be the only country shrinking compared to all the other advanced and emerging economies during 2023. Yet, the IMF also said they believe the UK are “on the right track”.

Supermarkets have been using price-matching and savings through loyalty schemes to encourage people to shop with them, as well as focusing on keeping prices low on everyday goods where possible.

The research firm Kantar said, sales of own-brand products have risen by 47% over the last year. This comes against a backdrop of sharply rising food prices. However, spending on promotions is at a record low, accounting for 23% of spending during a four week period, according to the research firm.

The IMF works to stabilise economic growth. The high energy prices, rising mortgage costs and increased taxes have all contributed to the downgraded forecast for the UK. They expect the UK to grow during 2024, revising the forecast to 0.9%.

VIDEO: Dr Florian Biermann, Senior Lecturer at Nottingham Trent University believes the economy shrinking may have detrimental impacts on society.

Aldi and Lidl have been large contenders in the UK’s food market for many years as a large number of people hunt for bargains. Sales at these supermarkets jumped by a quarter in January alone – but higher sales figures were also driven by price rises.

The three biggest supermarkets, Tesco, Sainsbury’s and Asda, saw a 6% growth in sales during January, as prices rose.

The government have introduced a number of schemes such as the energy bills support and increased benefits for low income households, but many people feel middle income homes still need more support during this period.

Prime Minister Rishi Sunak has pledged to halve inflation by the end of 2023, but many experts said this can be expected anyway due to a slowdown in energy price rises alongside the easing of post-pandemic supply issues begin to ease.

Gas prices rose 129.4% in the year to January 2023

Around two thirds of adults are spending less on non-essentials due to cost of living increases

Electricity prices rose 66.7% in the year to January 2023

Over one in five adults are borrowing more money or using more credit

Around one in six working adults are working more hours due to cost of living increases

Source: Office of National Statistics