Shopper confidence plummeted again last month, taking it to record lows as people became increasingly concerned about rising prices.
The Shopper Confidence Index from IGD Shoppervista fell from -18 in February to -23 in March, despite a slight peak mid-month when it looked like oil prices may come down. Financial confidence in particular dropped to a score below the previous low during the initial pandemic phase in April 2020.
Research for the Index showed that half of shoppers now expect food prices to be ‘much more expensive’ in the year ahead, a rise from 12% a year ago. Confidence amongst 18-34-year-olds dropped fastest, with older age groups ‘bottoming out’.
Meanwhile, the focus on saving money grew, with a net difference of 27% more shoppers now focused on saving vs buying quality.
“Shoppers are rightly concerned about prices increasing and beginning to shift their focus to saving money. This will obviously have an effect on the way they shop, so it goes without saying that businesses should be focusing on their value proposition and how they can support shoppers during this period,” said Rhian Thomas, Head of Shopper Insight at IGD ShopperVista.
“One positive from this is that trust in the industry remains strong – shoppers are aware that these challenges are external pressures, rather than industry-driven, so there is an opportunity to engage with shoppers during these turbulent times.”
NAM Implications:
- With consumer confidence plummeting to this extent…
- …it is essential that the brand’s relative competitive appeal be significant in order to stand out amongst the turmoil…
