Shopper trust in the food and consumer goods industry is the highest it’s been in a year, although financial confidence has taken a dive, according to new research.
The IGD Shopper Confidence Index blends four key measures that relate directly to the food and consumer goods sector to calculate an overall indication of shopper confidence. The latest results for March show the index has declined by four points to -9 amid the coronavirus crisis. This is the lowest it has been since September last year when it fell to -10 due fears of a no-deal Brexit.
Trust in the industry is the only measure to buck the trend and has seen an increase of two points this month, the highest it has been in the past 12 months.
The research found that while shoppers are most concerned with their household financial position going forward, as well as worries around future rises in food prices, they recognise and appreciate the efforts of the food and grocery industry during this period.
The data also revealed that 58% of shoppers have stockpiled groceries during the coronavirus outbreak, and savvy shopper behaviours are re-emerging such as cooking from scratch reducing food waste.
Simon Wainwright, Director of Global Retail Insight at IGD, commented: “We are all living with daily proof of how external events can have significant impacts on all parts of our lives, not least how we shop for and think about food and groceries.
“The IGD Shopper Confidence Index aims to help industry stay close to shopper sentiment by acting as a diagnostic tool on a month-to-month basis, as well as a foundation to make future predictions.
“Understanding these dynamics can help underpin new product launches as well as shopper communication strategies. 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.”
NAM Implications:
- And woe betide any company that breaks that trust…
- …and all the more reason for brands to continue to advertise…
- …carefully.
