Shrinkflation

As the impact of inflation starts to seep into UK consumer pricing, some canny manufacturers are taking the approach of reducing the size of their product, to allow revenue to be kept constant (e.g. Toblerone, Peperami and Maltesers). Where the utility to the customer isn’t noticeably diminished and the product is suitably differentiated, this may well work. For example, when buying a branded chocolate bar, one (arguably) doesn’t always need to eat it all, and so may be still satisfied with the lower mass. However, for commodity goods sold in varying volumes (e.g. milk), this clearly has less appeal. Offices are more likely to be seen in this latter category, and occupiers have been trying to do the same with less for years, (ave. spatial allocation 1990: 12 sqm pp, ave spatial allocation today: 10 sqm pp; new prime buildings design standard: 8 sqm pp).