Shopper confidence has hit its highest level since February, potentially reflecting the recent news of a Covid-19 vaccine roll-out over the coming months.
While still relatively low, November’s score of -6 in the IGD Shopper Confidence Index has reversed the recent decline and is the highest recorded level since the beginning of the year, up from -9 in October.
Despite the national lockdown in England and ongoing uncertainty over EU Exit, IGD suggested that consumer confidence has been boosted by news of the vaccine rollout and earlier than normal Christmas grocery shopping.
Highlights from the latest IGD index:
- Nearly one in five (18%) of shoppers are becoming more focused on quality (+3% vs. Oct) rather than saving money (17%, down by 5% vs. Oct). This is the first time since February that shoppers are focusing more on quality than saving money in the year ahead.
- Fewer expect to be worse off financially in the year ahead (31%, down from 34% last month). However, only 17% expect to be better off.
- 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 (+3% vs. Oct).
- Confidence has increased the most among 18-44-year-olds, women, and those living in London, the South East, the North West and Yorkshire and Humberside.
Simon Wainwright, Director of Global Insight at IGD, commented: “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.”
