Shopper confidence has declined for the second month running to -9, the lowest level since May’20, according to the latest IGD Shopper Confidence Index.
October 2020 results
Down from -8 in September, the unsurprising decrease can be attributed to changes in national lockdown restrictions, rising COVID-19 cases and an increase in unemployment. As a result, shoppers are more concerned about their finances and are expected to become more focused on saving money rather than quality when purchasing food and grocery items.
IGD ShopperVista October 2020
- 34% of shoppers expect to be worse off financially in the year ahead, up from 30% in August’20. Only 16% expect to be better off in comparison
- Over a fifth (22%) of shoppers expect to focus more on saving money in the year ahead (up from 21% in Sep’20) vs. 15% who expect to focus more on quality – the lowest level since Sep’19
- With tighter restrictions initially placed on Liverpool, Lancashire and Wales last month, confidence has unsurprisingly dipped in these regions. Shoppers in Wales are now least confident (-15 vs -11 last month). Confidence has also declined in the South East and Scotlands
- Confidence is down among all age groups apart from 25-34’s
- 34% expect to be worse off financially in the year ahead, up from 32% last month
Simon Wainwright, Director of Global Insight at IGD, said: “Shopper confidence is likely to remain fragile as the economic and health related impacts of a second national lockdown take effect. There have also been further uncertainties concerning whether there is a deal or no-deal with the EU.
“With shoppers continuing to be concerned about their finances, retailers and suppliers should be focusing on how best to support the intention to save money. This focus will likely carry through to Christmas, and as plans are still unknown, businesses should approach the festive season with a degree of flexibility.”
The full IGD Shopper Confidence Index is available to subscribers on IGD ShopperVista.
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Notes to editors
- Source: IGD ShopperVista; base: 1000+ British shoppers, September 2020
- The IGD Shopper Confidence Index blends four key measures that relate directly to the food and consumer goods sector to calculate an overall indication of shopper confidence:
- Household finances: expect to be better or worse off
- Food prices: expect to get less or more expensive
- Focus on quality vs. saving money: future and current focus
- Trust in industry: across a range of measures
- These measures are combined, and the Index score is calculated. The index can vary from -100 to +100, where -100 is a very negative outlook and +100 a very positive outlook. It produces a monthly indication of GB shoppers’ food and grocery confidence, with trended data going back to 2013.
- The IGD Shopper Confidence Index will be updated each month with our latest data. Historical trend data is available back to 2013
- For more information about the Index and its measures, please visit IGD ShopperVista
- IGD is a research and training charity which sits at the heart of the food and grocery industry. IGD has a trading subsidiary that provides commercial services; the net profits from these services are invested into its four charitable pillars – People, Health & Wellness, Sustainability and Economic Analysis
- All content is owned by IGD. If you use or refer to any content in this press release, please credit IGD