Talking Retail Grocery and product news for independent retailers
The latest IGD Shopper Confidence Index shows that while still relatively low, November’s score of -6, up from -9 in October, has reversed the recent decline and is the highest recorded level since the beginning of the year. Confidence appears to have been boosted by news of the vaccine rollout and earlier than normal Christmas grocery shopping, the IGD said.
The research also reveals 18% of shoppers are becoming more focused on quality (+3%) rather than saving money (- 5%). The IDG says this is the first time since February that consumers are focusing more on quality than saving money in the year ahead.
Fewer consumers (31%) expect to be worse off financially in the year ahead, the research showed, but only 17% expect to be better off.
In addition, the research shows trust in the food industry has increased to the highest level since June. With stores maintaining a good supply of products during the second lockdown, 80% trust the food industry to ensure good availability, up 3% on October’s figure.
The research shows confidence has increased the most among 18-44-year-olds, women, those living in London, the South East, the North West, and Yorkshire and Humberside.
Simon Wainwright, director of global insight at IGD, said: “News of a vaccine being approved for roll out in the UK and the easing of restrictions for family gatherings at Christmas has helped to sustain shopper confidence in the short term. However, this is likely to be fragile in the months ahead as more shoppers feel the impact of the economic downturn. A changing relationship with the EU could also have a significant impact on shoppers.
“With shoppers focusing more on Christmas celebrations with their ‘Christmas bubble’, this provides opportunities for industry to highlight permissible treats during this time.”
