After taking a battering in recent months, new data suggests that consumer confidence improved again at the end of last month as lockdown restrictions continued to ease.
GfK’s latest COVID-19 flash report using data gathered between 18 and 26 June shows its Consumer Confidence Index increased by three points to -27. This follows a six point improvement earlier in the month. However, the index still remains far below the score of -13 from this time last year.
Four measures used to compile the latest figure increased and one measure decreased:
Joe Staton, GfK‘s Client Strategy Director, commented: “Despite the backdrop of dire warnings about the state of the economy, large-scale job losses, the end of furlough with the prospect of further unemployment, and a possible second-wave of COVID-19, consumers appear to be slightly more confident as lockdown loosens across parts of the UK.
“After the recent near-historic low of -36 for the Consumer Confidence Barometer last month, we’re seeing some early signs of improvement across most measures for our fourth COVID-19 flash, even though all our core scores remain negative.
“The seven-point jump in the Major Purchase Index could bode well for ‘reopening day’ this Saturday as more shoppers hit the high streets after a trip to the pub and visit to the hairdresser. However, economic headwinds could easily blow any recovery off-course with confidence remaining fragile and volatile amid few signs of stability.”
NAM Implications:
- Time for a personal assessment of retailing from the perspective of the 14-week lockdown consumer?
- Shops designed for ‘full occupancy’ having to cope with 1-2 at a time.
- Waiting outside, especially in bad weather.
- Pressure to speed-shop (no browsing/impulse i.e. whatever happened to ‘70% of the purchasing decision being made instore’?
- Directionalised aisles, ‘regimenting/removing my shopping sovereignty…’
- Coping with other shoppers ‘dithering’ in the aisle…
- Shop staff that think the job is maintaining social distancing regulations rather than helping shoppers buy…
- Apart from that, the future of retailing looks bright ahead…
