Walk into any supermarket today and you can feel the shift. A basket of essentials costs the same as a decent restaurant meal just a few years ago.
Shoppers hover longer over price labels, comparing, calculating and ultimately, hesitating.
Increasingly, they make one of two choices: they either trade down because every penny counts, or trade up because “premium” feels like control, care and self-worth.
Meanwhile, everything in between is vanishing, quietly, but quickly.
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We’re Seeing this Across the Board
This is deeper than just rising prices or the cost-of-living crisis. It’s about the growing divide between rich and poor, and the emotional recalibration of what “value” means.
The comfortable middle — the space that represented safety, sensibility and mainstream success — has collapsed, while two distinct worlds, extreme value and extreme premium, have risen in its place.
The evidence is everywhere. In grocery, Aldi and Lidl are no longer places people reluctantly shop, but instead badges of smart modern living, where value is proudly worn as a virtue.
On the other hand, M&S Food has doubled down on its sweet spot of affordable luxury, offering quality you can defend to yourself and your friends, while Sainsbury’s, after years of confusion, has found its rhythm by stretching its offer credibly in both directions. That potentially leaves Waitrose in a shrinking space, built for a world where the middle felt secure.
You see it in other sectors too. In pet food, for example, the market has split. At one end, owners are buying raw and fresh food that mirrors their own health journeys — human-grade meals, lovingly portioned and delivered via subscription.
At the other, value tins and own-label bulk packs are flying off shelves. The £2.50 can and £6 raw pouch are both growing compared to the £3.80 “decent mid-range”, which people are turning their nose up at.
Fashion is equally stark. The rise of Shein and Temu represents the survival shopper, those who want affordable, fast, and fun. Meanwhile, brands like Reformation, Ganni and Alo Yoga are booming at the other extreme, selling not just clothes but identity and values.
The car market tells the same story. Dacia and Kia have become modern by being honest about value, while Tesla and Polestar dominate the future of premium. The dependable mid-range family sedan? It’s quietly fading away.
Even in coffee, we’re splitting between the efficiency of Greggs and Pret (although have you seen the price of a Pret posh cheese and pickle baguette these days? More than £6!) at one end and boutique roasters or subscription brands at the other.
The middle-tier chain, that once-ubiquitous “okay” option, is increasingly forgettable.
Build for a Shrinking Middle or a Polarised Market?
The uncomfortable truth is that the middle relied on one outdated assumption: people want balance.
They don’t, they want meaning. And right now, meaning is found at the extremes.
Some consumers are seeking the reassurance of thrift, pride in resourcefulness and control over tight finances. Others are chasing quality, health, sustainability or small luxuries that make life feel worthwhile. There’s no cultural narrative celebrating “average.”
The middle is no longer safe, modern or proud.
This isn’t just economics; it’s emotion. Consumers aren’t simply buying products; they’re buying stories about themselves. They’re signalling that they’re coping, protecting their families, treating themselves, refusing to settle or simply trying to hold onto something that feels good.
When society polarises, consumption follows and brands that don’t evolve fast enough get left behind. For businesses, this is an existential question. Straddling price tiers is dangerous and it’s that subsequent confusion that kills relevance. You can’t be “fine” anymore. You must be distinctly good value or distinctly premium.
This label is fragile, however, especially when trust has become the new currency. If people sense complacency, waste or a brand coasting on heritage, they’ll walk, often overnight.
So what should brands do?
First, know your market. Be brutally honest about where you play and whether that space is growing or shrinking. Pick a lane and build excellence there.
Second, know your shopper. Understand their missions and the differences between the stock-up trip, the treat-yourself splurge and the online impulse purchase. Convenience and digital experience are just as important as price or promotion.
And finally, know your consumer. Go deeper into the emotional drivers behind their choices. Are you helping them feel secure, smart, healthy, proud or rewarded? Because no one is fighting for “okay.”
The big question facing leadership teams now is, are you building for a shrinking middle or a polarising market? The world has moved on from the safe comfort of middle-ground brands.
There are only two viable futures left: be essential or be desirable. Everything else fades into background noise.
Consumers have already chosen their corners. It’s time for brands to choose theirs.
Jenny Burns is the CEO of Magnetic, a design and innovation consultancy that helps retailers and consumer brands grow by creating better customer experiences. Her career began at the sharp end of retail, running WHSmith stores, before moving into senior roles in financial services, communications and innovation. Over the last 30 years she has worked with some of the world’s biggest businesses to help them adapt to change, harness innovation and keep customers at the heart of their strategies. That mix of hands-on retail leadership and consultancy experience gives her a unique perspective on what makes shoppers tick and how brands can convert footfall and clicks into loyalty and growth.
