Shopper confidence remains stable despite Covid-19 fears

Consumer confidence in December showed no sign of change, when compared with the same period in 2020, even though there was a “slight return to normality”, the Institute of Grocery Distribution (IGD) has revealed.

Despite stability, there was a clear split across the month in 2021 as shopper confidence increased from a low of -13 in the first week to a high of -7 in the last week as it became evident no new Covid 19 restrictions would be introduced.

However, shopper confidence decreased the most amongst 35-54-year-olds.

Although restrictions were placed in Scotland and Wales, shopper confidence increased in Scotland from -15 to -10.

Financial confidence remained stable from November with 31% expecting to be worse off in 2022 and 20% expecting to be better off.

As a result, shoppers remained concerned about increased food prices, with 86% expecting prices to increase over the next 12 months. This is the highest level since January 2016.

READ MORE: Food prices set to rise in 2022

“It’s encouraging to see that overall confidence remained unchanged from November,” IGD ShopperVista head of insight Rhian Thomas said.

“Despite increased restrictions causing a dip in the first week, it’s clear that time spent with friends and family over Christmas helped to bolster confidence significantly by the end of the month.”

Thomas added: “Assuming no further restrictions are introduced then shopper confidence may be sustained in early 2022.

“However, this is likely to remain fragile in the first quarter as shoppers contend with a double whammy of the energy price cap review and the National Insurance increase in April.

“This will hit the lowest affluence groups hardest, as a higher proportion of their income goes on food, drink and energy, meaning that their recovery is slower than higher affluence groups.”

Click here to sign up to Grocery Gazette’s free daily email newsletter

Independent retailersSupermarketsSymbol Groups


Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.



Sign up to our daily newsletter to get all the latest grocery news and insights direct to your inbox.

  • This field is for validation purposes and should be left unchanged.