UAE families are feeling the pinch of inflation and navigating the financial strain of a mounting cost of living by adjusting their shopping habits.
A YouGov survey released this week found that half of global consumers have seen their disposable income shrink by 22 per cent in the last 12 months.
And almost 62 per cent of those surveyed globally said they were worried about how the impact of high inflation will affect their spending in the next year, with only 12 per cent claiming they are not worried.
As many households tighten their purse strings by shifting to off brand products, cheaper retailers or buying more items on sale, The National spoke to some shoppers to see whether it was helping.
Smart shopping to beat the price
One Indian family in Abu Dhabi goes the extra mile to shop smartly by comparing prices at popular supermarkets and waiting for offers to manage their budget.
Ancy Joseph is a schoolteacher and her husband Varghese Joseph a sales professional in Dubai. The couple have two children, Junay, 12 and Hain, one, and live in a modest two-bedroom apartment in Mussaffah.
Ms Joseph said she compares the price of every product before she shops, a tactic employed by 36 per cent of the people YouGov surveyed globally.
“That makes a lot of difference. We save at least Dh400 ($109) a month on groceries because I buy certain items from certain supermarkets on certain days,” Ms Joseph said.
For instance, she buys fresh chicken at weekends for Dh13.95 per kilogram from a local supermarket in the Shabia area of Mussaffah.
“The same brand of chicken would cost me Dh14.95 during a weekday from the same shop,” she said. “If I shop from bigger outlets, I will end up paying Dh18 or even Dh22.”
Ms Joseph also saves on milk, which she says costs Dh10.95 at weekends and Dh12.95 during the week.
She quoted price differences between Dh2 and Dh5 for products like small bananas, eggs and fruits.
Ms Joseph regularly checks the websites of leading supermarkets and also goes through supermarket flyers.
“There are also WhatsApp groups for many of these supermarkets and they keep posting prices of products every day,” she said.
“Before I order anything, I go through it meticulously and spot the cheapest price before I placed the order. Now I know what is available where at the most affordable rate.”
Soaring food costs
According to the survey, groceries are the top concern for more than half of global consumers (55 per cent) surveyed and three in 10 are conscious of the price of takeaway food.
Over a third are concerned about the cost of clothing and shoes (35 per cent), almost on a par with utilities (36 per cent). Health and beauty products fall within the next tier of price sensitive categories followed by medicine, healthcare products, cosmetics, and tech and electronics.
The survey found 35 per cent of consumers wait for sought-after products to go on sale and 34 per cent go for cheaper alternatives or shop at cheaper stores.
The Josephs go the extra mile by going to Dubai for certain items, which they say are cheaper in some outlets.
“My husband lives in Dubai during weekdays,” Ms Joseph said. “So, I give him a list if things like diapers, washing powder, rice etc which are cheaper.
“As my daughter is one year old, diapers are always on our shopping list. I have recently discovered a brand that is only available in Dubai.
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“I get a pack of 64 diapers for just Dh34 and the quality is really good. I was shelling out Dh38 and even Dh42 for the same quantity on other popular brands.”
The couple says they put in time and effort to shop on a budget, but they have no choice.
“Prices of most of the items have gone up and it affects our family budget,” Ms Joseph said. “A one-litre glass of yoghurt that was available for Dh3.50 two years ago now costs anything above Dh5, and even Dh6.95.”
The family of four used to spend Dh150 per week on shopping a few years ago, but now Mr Joseph says it is impossible.
“Ours is an average family with two kids,” he said.
“We are struggling to keep the weekly budget to around Dh250. If we did spontaneous shopping, I would be easily forking out Dh400 or even more every week.”
Price wars among supermarkets
With price-conscious shopping on the rise, supermarket chains in the UAE are also vying for better deals to attract or retain customers.
V Nandakumar, director of marketing and communication at LuLu Group International, told The National that inflation is a global phenomenon affecting everyone.
“Our key focus has always been to keep the prices as low as possible by making offers and promotions for our consumers on a daily and weekly basis,” he said.
“We are trying hard to keep prices at affordable levels. We have announced a price freeze on more than 2,000 essential commodities, which are kept at the bare minimum throughout the year.”
Mr Nandakumar said the group sources products directly from manufacturers and also negotiates better deals with suppliers to offer the best prices to consumers.
“And we have introduced our own private labels which are 20 to 25 per cent less compared to many popular brands,” he said.
Kamal Vachani, director at Al Maya Group, that has over 50 supermarkets in the GCC, told The National that prices are kept low through careful planning.
“We use our extensive network and purchasing power to buy in bulk at the lowest prices without compromising on quality,” he said.
The group also closely monitors market trends and fluctuations and acquire products at the right time to ensure the lowest prices, he added.
