Shopper confidence has increased to its highest level since February 2020, according to the latest IGD Shopper Confidence Index. The increase was driven by improved confidence within the over-55s, which appears to be a direct result of the vaccine roll-out.
Trust in the food industry was also found to be at an all-time high, with IGD saying this was due to the industry maintaining supply, focusing on health and supporting local communities and suppliers.
Despite the encouraging results, overall confidence still remains fragile. This is due to the uncertain length of the national lockdown, the economic downturn and potential supply chain disruption surrounding the EU trade deal.
January’s score increased slightly to -5. IGD found that shopper confidence fluctuated 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. The index rose to -4 at the end of the month as the UK made good progress with its vaccination programme.
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.”
