Following the further lifting of restrictions last month, ‘shopping around’ for food and grocery items has increased and is now even higher than pre-pandemic levels.
ShopperVista data from IGD shows the number of grocery shops used by shoppers has risen to 13, which is the highest level since December 2018. The shift in shopping culture has been seen most in hypermarkets and supermarkets in the last month with IGD suggesting the trend was driven by a combination of the lifting of Covid restrictions, the heatwave conditions, and the Euro 2020 finals.
Meanwhile, shopper confidence remained relatively strong during July, according to the latest Shopper Confidence Index from IGD. At -3, it mirrors the previous month’s level and is one of the highest levels in the last five years.
However, this is coupled with several challenges such as the persistent K-shaped economic recovery which is creating increased polarisation between lower and higher income households, and rising inflation. The research shows that rising inflation is starting to worry more consumers, with 16% now expecting food prices to rise, against 8% in April.
Meanwhile, despite the mounting supply chain issues caused by the lorry driver shortage and ‘pingdemic’, 75% of those surveyed said they still trust the food and consumer goods industry to ensure good product availability, the same level as the previous month.
Simon Wainwright, Director of Global Insight at IGD, commented: “During the pandemic and consequent lockdowns, retailers have been able to capitalise on relatively captive audiences. Now, as restrictions lift, shoppers have the freedom to shop around for favourite products, quality and variety. The increase to pre-pandemic levels may be a result of shoppers making up for lost time, boosted by feel-good events, such as the Euro Finals.
“However, this motivation is only likely to be true of more affluent shoppers. Lower income households are more likely to be shopping around for value amid rising concerns around price inflation.
“Retailers will need to concentrate on driving loyalty to maintain market share, by focusing on range, quality and innovation. There will be a real spotlight on value as inflation rises, particularly for lower income households.”
