Consumer confidence at one of the lowest levels on record

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Shopper confidence remains at one of the lowest levels on record, new research reveals.

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The IGD Shopper Confidence Index in May 2020 remains low at -10 which, despite its negative position, is the first time the figure has stayed at the same level as previous months. Expected financial confidence has increased by two points to a score of -23, with 47% of shoppers now expecting to be worse off in the year ahead, down from 50% in April.

The research found there are significant changes in shopper confidence by region, it has increased the most in London, which has seen a steeper drop in Covid-19 hospital admissions over the past month than any other region. In contrast, Scottish shoppers are least confident.

In addition, the study shows older shoppers aged 45-64 remain the least confident. These consumers, many of whom will have family responsibilities, may be concerned about the impact of Covid-19 on their health and economic prospects.

Simon Wainwright, director of global Insight at IGD, said: “Despite the low levels of overall confidence, it is encouraging that trust in the food and consumer goods industry remains high, suggesting that shoppers are increasingly appreciating the work of the sector throughout the pandemic.

“We are also seeing significant changes by region, reflecting how Covid-19 is impacting different parts of the country. As such, retailers need to keep an eye on how the pandemic is impacting different shopper groups as they plan for an evolving trading environment. This pace of change is going to make it harder to create any long, or even medium-term, category plans. Keeping on the pulse of how shoppers are feeling has never been so vital.”