High Gasoline Prices Drive U.K. Consumers to the Web

With gasoline prices in England continuing to climb, U.K. residents are increasingly staying home and shopping on the web, conserving fuel.

April 19, 2011

LONDON - According to the Institute of Grocery Distribution (IGD), the U.K. food industry??s research arm, rising gasoline prices in England are driving more than half of Britons to shop less often and more locally, the Financial Times reports.

The IGD said its monthly analysis of grocery shopper sentiment showed that 52 percent would shop less often if gas prices continued to rise. Additionally, nearly one-third said they would consider shopping more online to save on fuel costs.

"Petrol prices have shot up in the past two years, forcing shoppers with cars to make tough decisions on how they spend their money. They are telling us they plan to prioritize groceries and petrol, while cutting back on other items," said Joanne Denney-Finch, chief executive of the IGD.

Supermarkets?? non-food items have been hit hard, as shoppers are avoiding spending on non-essential items. The IGD said that 47 percent of shoppers said they would not spend less on groceries or fuel, but instead would save in other areas.

"The high cost of fuel means that shoppers are thinking about using the Internet more for their food and grocery shopping," Denney-Finch said. "They also plan to reward stores that give fuel discount vouchers and supermarkets with forecourts, as they are seen as offering cheap petrol."

Sainsbury, the U.K.??s third biggest grocery retailer, said there had been "quite a significant step down by consumers" since Christmas. Indeed, industry-wide, sales growth in the grocery sector dropped four percent in the four weeks to February 20, to 2.8 percent in the four weeks to March 20.

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