1 minute read
Business Intelligence
by 55 North
IGD
Shopper confidence rises in run-up to Christmas
Data shows Northern England and Scotland were the only regions that didn’t see an increase in shopper confidence.
Shopper confidence has risen for the first time since April 2021, as shoppers prepare for Christmas, research by the IDG reveals.
The November 2021 Shopper Confidence Index, from insights organisation ShopperVista, shows shopper confidence increased to -9 in November compared to -11 in October.
Shopper confidence increased throughout the month, reaching a high of -6 at the end of the month, with an overall average of -9 for the month.
The research finds that 61% of shoppers are looking forward to getting back to a ‘traditional’ Christmas following the dampened 2020 festivities and 67% think that Christmas is a time to splash out on food and groceries.
In addition, the data shows shopper confidence increased across most demographic groups, particularly those aged 25+ and lower income households. Meanwhile, Northern England and Scotland were the only regions that didn’t see an increase in shopper confidence.
However, expectations around price increases have reached an alltime high: 85% expect food and grocery prices to increase in the year ahead and 29% expect them to get much more expensive.
Rhian Thomas, Head of Insight, ShopperVista, said: “Following the bleak picture the Shopper Confidence Index painted last month, it’s refreshing to see a slightly brighter outlook. Assuming that no more restrictions are put in place as a result of the Omicron variant, we expect confidence to be elevated throughout the month.
“However, it’s unfortunately not a longer-term story of Christmas cheer. Despite the decision by the Bank of England not to raise interest rates at the moment, the media has focused heavily on the rising cost of living. We expect shoppers to increase their focus on saving money at the start of 2022, to make up for any overspending at Christmas and prepare for the energy price cap which could see household energy prices jump by more than 40%.”
