Shopper confidence has increased again in February to -4, the highest level in over a year according to our latest Shopper Confidence Index results.
Key drivers for confidence
The increase is driven by the announcement of the planned easing of lockdown restrictions and the rapid rollout of the COVID-19 vaccination programme.
- Confidence dipped to -9 at the beginning of the month, coinciding with lockdown restrictions and some of the coldest weather since 1995, but then increased to -2 when the Prime Minister announced the four-step plan for ending restrictions in England
- The highest increase in confidence was amongst shoppers aged 35-44 and those with children, which is likely to be a result of schools returning on 8 March 2021
- Financial confidence is also at its highest level in over a year and trust in the food industry to keep food prices low is at its highest level to date
- Financial confidence is increasingly polarised – 26% of more affluent groups believe they will be better off in the year ahead and 27% of less affluent groups believe they will be worse off
The landscape is likely to remain predominantly polarised. There’s elevated confidence among higher affluence groups, many of whom have built up savings during the pandemic. In contrast, confidence is likely to remain weaker among lower affluence groups due to lost incomes and negatively impacted employment prospects. We could see confidence continue to rise in the short-term following the extended financial support announced in the Budget.
The full IGD Shopper Confidence Index is available to subscribers on IGD ShopperVista
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