Consumer confidence remains stable

Confidence among food and grocery shoppers remained stable in August, with some uplift, according to the latest IGD Shopper Confidence Index.

The slight increase is most likely a result of the summer holidays and the Eat Out to Help Out Government scheme, with shoppers also benefiting from a general return to a sense of normality.

Other findings from the report were that only 30% of shoppers expected to be worse off financially in the year ahead, down from 34% last month and 50% in April. Also 79% of shoppers expect food prices to increase in the year ahead, down from 83% last month.

Confidence increased among 35-44s, and confidence in London rose in both London and the South for the third and forth moneth running respectivel. in London for the third month running and in the South for the fourth month running.

The change in confidence in younger demographics was on a downward trend, with 24% of 18-24s expecting to be worse off in the year ahead (vs. 20% in July), and 33% of 25-34s expecting to be worse off (vs. 24% in July).

Simon Wainwright, Director of Global Insight at IGD, said: “Overall shopper confidence is likely to remain fragile as unemployment levels rise and shoppers contend with the impact of an economic downturn in 2020. This will likely see an increased focus in savvy shopping behaviours from the shopper groups most affected, which businesses should consider for their 2021 planning.

“With many shoppers changing their behaviours and trying new things, there are some key opportunities for retailers and suppliers to target new at home key occasions, such as celebrations and evening meals.”

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