British Shoppers Wise Up To ‘Double Dip Shrinkflation'

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CONSUMERS in the United Kingdom are noticing "double dip shrinkflation" where products such as chocolate and crisps have reduced in size multiple times as suppliers try to protect their profits.

A survey by Barclays found eight in 10 shoppers had been affected by so-called shrinkflation with over a quarter noticing products becoming smaller more than twice – most commonly on snacks including biscuits and sweets.

It also revealed that almost half are splashing out on small luxuries such as cosmetics and sweet treats to brighten their mood, a phenomenon often seen during times of belt-tightening and known as the lipstick effect. Barclays said its card data showed spending at health and beauty retailers up 7.3 per cent year-on-year, the fastest growth since early 2023.

Shrinkflation has hit a number of popular products in the UK with recipes also tweaked to save on costs. An investigation earlier this year found that products, including Bisto chicken gravy granules, Colgate triple action toothpaste and Lurpak butter have shrunk while remaining the same price or increasing in cost.

Companies may start to use shrinkflation less due to easing cost pressures, however. Food inflation in the UK has tumbled from double digits to 1.4 per cent over the last year, and central banks across the world are cutting interest rates.

"We are also seeing an emerging trend of consumers indulging in retail therapy for mood-boosting pick-me-ups," said Karen Johnson, head of retail at Barclays.

"This is a much more immediate version of the long-running trend of consumers making room in their budgets for memorable experiences, such as tickets for next year's Oasis tour," she said.

Figures from Barclays and the British Retail Consortium (BRC) both showed barbecues and "picnic weather" boosting retail sales in August.