As the financial squeeze intensifies for households, most people are also making greater use of retailer loyalty schemes to secure lower prices, according to the latest KPMG Next Gen Retail Survey.
It found that financial insecurity is among consumers has risen to its highest level since KPMG began tracking retail sentiment in October, 2024.
The consultancy said its research found that nearly four in 10 Irish adults feel less financially secure compared to the start of the year.
Higher motor fuel costs, rising home-heating oil prices, ongoing food inflation and rising health insurance premiums are leaving the “squeezed middle” feeling the pinch.
There are also fears that inflation could track even higher then longer the conflict in the Middle East goes on.
Financial insecurity among Irish consumers has risen, with 38pc saying they feel less financially secure than at the start of 2026.
This sentiment is up from 30pc in April last year and 27pc in October 2024.
KMMG said this reveals “a consumer population under significant and intensifying financial strain”.
The fieldwork was carried out during the US-Iran conflict, before the Irish fuel protests, suggesting that consumer anxiety may have become more acute than these figures capture.
Getting the best price was cited as the primary shopping factor by 55pc of consumers.
And value for money is the top priority for 89pc when choosing a favourite retailer.
Over half (or 55pc) of consumers are now buying fewer items to save money, with a further 53pc making greater use of retailer loyalty schemes to secure lower prices.
Online shopping is now seen as cheaper than in-store by most consumers.
The influence of loyalty schemes on retailer choice has grown continuously since 2023, KPMG said.
The surge in financial insecurity is not evenly distributed.
Women are significantly more affected than men.
Those in the 35 to 54 age group – the so-called squeezed middle – have emerged as the cohort under the most acute financial pressure.
Some 42pc of them feel less financially secure.
This group is also the most price-sensitive when choosing where to shop, prioritising getting the best price above all other factors.
With mortgage costs, childcare expenses and the general cost of living converging on this demographic, the commercial implications for retailers targeting these age groups are significant, the consultancy firm said.
Head of consumer, retail and manufacturing at KPMG David O’Kelly said: “Financial pressures have intensified, but consumers are adapting by seeking value, using loyalty, and switching channels to suit their needs.
“Retailers that combine fair prices with trusted experiences, seamless digital, and in‑store options that match different preferences will be best placed to retain and win customers.”
Adults in this country are actively adapting their shopping behaviours in response to financial stress.
Over half have bought fewer items over the past year.
Consumers are also making greater use of retailer loyalty schemes to secure lower prices, are buying more products on promotion or discount, and are switching to own-brand or value products.
Evidence has also emerged of consumers selling unwanted items online in a bid to save money.
KPMG’s Next Gen Retail Tracker survey of consumer retail attitudes was conducted by Red C. Some 1,005 respondents aged over 18 was surveyed.