Consumer confidence improves with vaccine roll-out

The latest IGD Shopper Confidence Index shows shopper confidence fluctuated slightly across the month and dropped to -7 in early January following the new national lockdown and ‘stay at home’ message, combined with the rising number of Covid-19 cases, hospital admissions, and deaths.

The index rose to -4 at the end of the month as the UK passed the halfway point towards its mid-February target of administering at least one dose of a Covid-19 vaccine to 15 million people.

In addition, the data shows confidence has increased the most among those aged over 55, a priority group to receive the vaccine, and has improved slightly across all major regions.

The research also shows that 19% of consumers expect to be better off in the year ahead – the highest level since July 2020 – while 31% expect to be worse off financially in the year ahead.

The research also shows that trust in the food industry has increased to the highest level recorded, with a focus on the provision of healthy products, supporting local suppliers, farmers and local communities.

Simon Wainwright, director of global insight at IGD, said: “It’s really encouraging to see a slight increase in confidence in January, which builds on the increase from November 2020.

“However, the uncertainty surrounding the length of lockdown, the economic downturn and potential supply chain issues around the EU trade deal will mean that confidence will remain fragile for the foreseeable future, but it will be interesting to see the results in February, when the government is on course to reach its target of vaccinating 15m people.

“The increased trust in the food industry is testament to the responsiveness and agility delivered by suppliers and retailers throughout the pandemic and this will need to be maintained for shoppers as we are faced with continued uncertainty.”