Latest data from IGD suggests shopper confidence is starting to improve as lockdown restrictions continue to ease.
The IGD Shopper Confidence Index for June was -7, up from -10 in May. The score has been recovering from the lowest point of confidence during the height of the coronavirus crisis in March and April.
The score is calculated using four key measures: household finances, food prices, focus on quality vs. saving money, and trust in industry.
Highlights from June’s research include shoppers being less concerned with their household financial position. Expected financial confidence increased by 10 points to a score of -13, with 35% now expecting to be worse off in the year ahead, down from 47% in May and 50% in April. 16% expect to better off, compared to 11% in May.
Meanwhile, trust in the food industry remains at the highest level recorded in the last seven years of tracking by the IGD.
However, shopper confidence is expected to remain fragile as people contend with the impact of a deep economic downturn in 2020, with lower GDP and significantly higher unemployment. Older shoppers aged 45-64 remain the least confident, whilst confidence has increased the most among 35-44s.
Simon Wainwright, Director of Global Insight at IGD, commented: “Shoppers have been boosted by the easing of lockdown measures, the warm weather and low inflation. These factors may be holding back any reversal in shopper confidence for now.
“The economic impact of COVID-19, including rising levels of unemployment, is likely to have a big impact on shopper confidence going forward. An increased focus on savvy shopping can be expected where value becomes more important long term.”
