Shopper confidence remains low but small signs of recovery – new survey shows

The latest shopper confidence index from the IGD, the grocery industry’s research and training charity, shows that although consumer confidence was low in August the level was a slight improvement on the previous month.

The IGD says this was largely due to the arrival of the summer holidays and the impact of the government’s Eat Out to Help Out scheme which boosted consumer spending during the month.

Another worrying finding from the August index is that 30% of shoppers expect to be worse off financially in the year ahead. However, this is an improvement on the previous month, when the rate was 34% and compares with a level of 50% in April just after lockdown started.

The index also shows that 79% of shoppers polled in August expected food prices to increase in the year ahead but once again this was an improvement on the previous month when the figure was 83%. The index findings are based on the views of more than 1,000 British shoppers polled in August.

Simon Wainwright, director of global insight at IGD, said: “Shopper confidence is likely to remain fragile as unemployment levels rise and shoppers contend with the impact of an economic downturn in 2020. This will likely see an increased focus on savvy shopping behaviours from the groups most affected, which businesses should consider for their 2021 planning.

“With many shoppers changing their behaviours and trying new things, there are some key opportunities for retailers and suppliers to target new at home key occasions, such as celebrations and evening meals.”