Consumer Insights:
Value Means More than Low Prices
As consumers become more discerning, quality and relevance now shape how shoppers judge value.
Through years of squeezed household finances, value has been retail's main battleground. Now, as the economic backdrop stabilises, the battle lines are moving.
Shoppers still watch what they spend, but the lowest price is now rarely the deciding factor. Instead, they are judging the whole offer, weighing product quality, relevance, convenience and the wider shopping experience against the price they pay.
Our 2026 survey found product quality to be between two and four times more important than low prices as a primary reason for choosing a retailer across the categories analysed. The importance of quality relative to low price has also strengthened since 2024.
This shift is more acutely evident among younger consumers. Barclays spending data shows that under-35s have increased the proportion of their spending directed towards quality-led retailers, while older shoppers show more signs of trading down. For 25–34-year-olds, quality-led retailers gained approximately two percentage points of spending share over the past year. The shift is in part a consequence of AI making competitive and transparent pricing tablestakes. As Agentic search becomes part of the shopping journey, shoppers can research products, compare alternatives and check prices with far greater ease. Among consumers using AI for purchase decisions, 52% use it to research and compare products, while 40% use it for inspiration and 37% to identify discounts or promotions.
Retailers are responding in different ways. Very is investing in AI-enabled pricing capabilities to improve its responsiveness, while George at Asda is strengthening its positioning around style and design, showing how affordability can coexist with a more compelling product offer.
of consumers use AI to research and compare products
The implication for retailers is clear: winning on value is no longer about being the cheapest, and a race to the bottom on price is one few retailers can afford to win. It is about delivering and communicating a proposition that consumers believe is worth paying for.