Shoppers are continuing to rewire their purchasing behaviour around value, with a sustained shift toward lower-priced retailers and private label products, according to new research from Alvarez & Marsal’s Consumer and Retail Group.
The Spring 2026 Consumer Sentiment Survey indicates financial pressure is still shaping decision-making across categories. Rather than simply cutting back, consumers are actively optimising where and how they spend.
More than a quarter (27%) of respondents said they plan to switch to cheaper retailers while keeping their preferred brands, up from 16% last fall, signalling that channel choice is becoming a primary lever for cost control.
At the same time, overall spending is expected to decline across most categories, with grocery the notable exception where consumers anticipate higher spend.
Private label continues to move beyond its “trade-down” positioning, with 68% of consumers saying store brands match or exceed national brand quality, a further 56% preferring private label for unique offerings and 69% saying they meet dietary or lifestyle needs
This perception shift is broad-based across income groups and is particularly pronounced among younger consumers, reinforcing private label as a long-term margin lever for retailers.
Despite overall restraint, consumers are still willing to spend where value is clear:
Selective spending, not blanket cutbacks
Despite overall restraint, consumers are still willing to spend where value is clear:
- Beauty: 43% have simplified routines, but core categories like skincare and haircare remain resilient
- Apparel: Shoppers are trading up selectively for durability, fit and material quality
- Grocery: Spend rising, but increasingly directed toward value-led formats
The pattern is consistent: lower volume, higher scrutiny, and targeted investment in perceived quality.
AI influencing the purchase journey
AI is becoming embedded in shopping behaviour:
- 25–41% of consumers use AI for discovery and research
- 64% of those aged 18–44 rely on AI recommendations
- 66% of users act on those suggestions
This signals a growing role for algorithmic influence in value comparison and product selection, particularly among younger cohorts.
This signals a growing role for algorithmic influence in value comparison and product selection, particularly among younger cohorts.
Shoppers are reallocating spend with precision: cutting volume, shifting channels, and demanding clearer value. For retailers, the implication is that price perception, private label strength and differentiated product value are now core competitive levers, rather than supporting tactics.
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