The latest update from Primark-owner Associated British Foods (ABF) was encouraging for the company’s shareholders. It flagged resilient demand as it upgraded profit guidance.

Whether this is reflective of a consumer not feeling the pinch as much as feared or evidence that people are pursuing cheaper options is hard to judge from just one trading statement.

However, this is not the only indication that people are adjusting their shopping habits. While regulator Ofgem’s energy price cap was recently cut, this is less relevant than the fact the Government’s support for households is set to be scaled back from April leading to significantly larger bills across the board.

As Danni Hewson notes in her regular column owners of big brands have started to talk about having to pause price increases to avoid
destroying demand and driving people towards own-brand alternatives.

PwC consumer markets specialist Lisa Hooker highlighted signs in the latest official retail sales data that in the grocery market shoppers are buying and wasting less food as well as trading down to cheaper items and shops.

Good news for the discount supermarkets like Aldi and Lidl but another headache for the traditional supermarkets in this sector with Morrisons looking particularly vulnerable. Taken over by private equity in 2021 for £7 billion the company is carrying large debts and recently had its credit rating downgraded by Moody’s.

Primark is trying to shed its disposable fashion image through initiatives like using more recycled cotton, but without being unfair, some items on their shelves could be considered a false economy as they won’t last as long as more expensive but higher quality alternatives.

However, in areas like children’s clothing, where longevity is less of a factor, you can understand why Primark’s offering might find a wider audience. Associated British Foods’ shares are now at a one-year high with trading at Primark flagged as ‘particularly strong’ and ‘good in all its markets’.

Some other businesses which might benefit from people seeking out budget options are general merchandise play B&M European Value Retail (BME), footwear firm Shoe Zone (SHOE:AIM) and book and gifts seller TheWorks.co.uk (WRKS).

This is one of those situations when looking at your own approach might be instructive. If you’ve stopped buying the brand name product or you’ve recently started shopping at a chain you wouldn’t have looked at before, chances are other people are too. These micro decisions made by individuals add up and they can make a difference on a much broader basis.

What these bargain-priced, consumer-facing firms will hope is that people’s habit of watching their pennies and seeking out cheaper prices will continue even when cost of living pressures are not so acute.

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