Shopper confidence plummeted in January to the lowest levels ever recorded by IGD’s Shopper Confidence Index.
The latest ShopperVista data reveals an average score for the month of -14, down from -9 in December – the lowest it has been at any point in IGD’s research. Despite the lifting of Covid restrictions, confidence dropped in the first week of January to -11, and by the end of the month it had dropped to -17.
Research for the Index found that 89% of shoppers now expect food prices to rise in the next year, the highest level since September 2011. Meanwhile, financial confidence reached its lowest level since 2013, excluding the initial 2020 lockdown period, with 39% stating they now expect to be worse off than at the end of last year.
“The removal of Covid-19 restrictions this month did nothing to improve shopper confidence due to cost-of-living concerns, and there is still space for it to decline further given the full effect of rising prices is yet to be felt,” said Rhian Thomas, Head of Shopper Insight at IGD ShopperVista.
“We continue to believe that rising food and energy bills will hit the lowest affluence groups hardest, with ‘heating vs. eating’ becoming a genuine concern for the lowest earners.
“From our data we’re seeing shoppers indicate they’re spending more than they want to and buying less as a result. Going forward, businesses should prepare for shoppers being more planned in their shopping – eating more at home and looking to spend less day-to-day to save money and spend on what matters to them.”
NAM Implications:
- Consumers have been running scared for two years….
- Under the continuous stream of a succession of crises that have served to prevent them from becoming acclimatised to the onslaught…
- Resulting in a buildup of fear that will not dissolve on cessation of Lockdown restrictions…
- We need to anticipate a long haul in restoring consumer confidence, methinks!
