Shoppers turning to credit as prices rise

Rising prices are prompting shoppers to use credit, buy less and compare prices, new Which? research reveals. 

As inflation hits a 40-year high, Which? quizzed 2,000 people to find out how the cost of living is affecting the way they shop.

Shoppers told us they had noticed rising prices across a range of non-food purchases — from clothing and beauty to outdoor and technology items. 

A worrying number revealed they are turning to credit as they simply did not have enough cash, with one person telling Which? they needed to use their credit card to purchase some deodorant before payday.

• Find out more: free advice to help you with the rising cost of living

Where are shoppers noticing price rises?

When we surveyed 2,000 members of the UK public on whether they had noticed prices rising across a range of non-food retail categories in the first six months of this year*, shoppers in all categories told us they had.  

The awareness of price increases ranged from 67% of those buying DIY products to 40% of those making baby- and child-related purchases.

The chart below shows the proportion of shoppers who have bought items in each category and noticed rising prices over the first six months of this year: 

What are shoppers doing about rising prices?  

Shoppers told us they are using a range of tactics to try to manage rising prices.

Buying fewer or cheaper items

Buying fewer or cheaper items is a popular way to control spending. Clothes, shoes and accessories was the category in which most shoppers told us they had bought fewer items. This was followed by health and beauty, and outdoor and sporting equipment. 

Those buying household appliances were least likely to have bought fewer items, probably because these tend to be big, one-off purchases that often cannot be delayed. 

Meanwhile, shoppers buying baby-and-child and beauty-and-health products were the most likely to opt for cheaper items. 

Comparing prices or shopping around

Comparing prices was particularly popular for those shopping for babies and children, with 41% of those who said they had noticed prices going up in this category using this as a tactic.

Buying from different retailers can also be a good money-saving technique. This was highest among those buying DIY and decorating, beauty and health and outdoor and sporting purchases.

If you're thinking of switching retailers, make sure you pick a good one. Every year we quiz thousands of shoppers to reveal the best and worst shops   for everything from value for money to customer service and the quality of products.  Our latest results reveal the best and worst retailers selling beauty and health, outdoor, clothing and baby and child products.

Using credit 

Most worrying of all is the number of shoppers using credit as a result of prices going up. 

Nearly one in five shoppers (18%) who'd noticed rising prices for baby and child products, household appliances and technology items used credit. This includes payday loans, credit cards, buy now, pay later schemes and borrowing money from friends and family. Many purchases in these categories will be things that cannot easily be delayed. 

We heard from dozens of shoppers who told us how they had turned to credit because they simply couldn't afford their purchases otherwise. 

One shopper said: 'I borrowed money from my family to buy a new computer. It's very unpleasant to ask and I don't know how I'll repay them.' 

Another told us: 'I knew I didn't have enough money in my bank account and I needed deodorant before payday, so I paid on my credit card and hoped I'd have enough money in the next pay packet to pay it off.' 

And yet another said: 'I paid by credit card because I didn't have enough cash in my current account to buy these items. Didn't work out well as the interest rate on the credit card is excessive.'  

• Find out more: how to deal with debt

Buying second-hand

Others told us they had bought second-hand items.

Buying second-hand was especially popular among shoppers in our survey who were dealing with the rising costs of clothes, shoes and accessories (13%) and baby and child products (13%).

• Find out more: best and worst places to shop second hand online   

How shopping is changing

Experts predict the cost of living crisis is likely to change shopping in a number of ways. 

These include increased delivery costs, higher thresholds for free delivery and having to pay to return items. 

Despite rising prices, there are still ways to make sure you get the most out of shopping online, and our experts have loads of tips. 

• Find out more: how to get the best price when shopping online   

*In July 2022 we conducted a nationally representative survey with 2,000 members of the public to find out whether they had noticed rising prices.