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Buisness Intelligence
by 55 North
CONSUMER CONFIDENCE
Consumer confidence figures paint ‘bleak picture’ for winter
IGD research shows concerns around food price inflation are at elevated levels..
Consumer confidence has fallen to its second-lowest level since 2013, following a decline in five out of the past six months, new research shows.
The October 2021 Shopper Confidence Index from ShopperVista – which provides category, insight and commercial professionals with shopper insights – shows shopper confidence fell to -11, down from -9 in September.
The research reveals concerns around food price inflation are at elevated levels, with 84% of shoppers expect food and grocery prices to increase in the year ahead, and a record 28% expect them to get “much more” expensive. As a result, 26% of shoppers expecti to focus more on saving money in the year ahead, which is the highest level recorded in six years.
The research shows overall financial confidence has declined, with 34% of shoppers expecting to be worse off in the year ahead, up 3% on last month. Confidence has declined across all income groups, but particularly amongst lower income households.
In addition, shopper confidence is declining across most age groups, but particularly among 25 to 34-year-olds and the over-45s.
Simon Wainwright, Director of Global Insight at IGD, said: “It comes as no surprise that shopper confidence has decreased once again, following the steady decline we’ve seen in recent months. It paints a bleak picture for the winter and shoppers will remain highly sensitive to price rises and news relating to availability. With labour supply stretched thin and declining confidence, the Christmas trading period is likely to be a challenging time.”
He added: “While some households will look for ways to trade-up this Christmas to compensate for missing out on last year, ‘savvy shopping’ will become increasingly prevalent. People will shop around to get the best deals and private label products will grow in popularity. Value will be top of shoppers’ minds for the foreseeable future.”
