Shopper confidence has risen to -1, its highest level in the last five years, according to our latest Shopper Confidence Index results.
Key drivers for confidence
The increase is driven by the further easing of lockdown restrictions, a sharp decline in COVID-19 cases and the rapid rollout of the vaccination programme.
- Towards the end of the month, shopper confidence increased to +1, following the further easing of lockdown restrictions, which included non-essential retail, the declining cases of COVID-19 and the rapid roll-out of the vaccination programme
- Financial confidence has improved. Just 23% expect to be worse off in the year ahead, which is the lowest level recorded. 22% expect to be better off
- Shoppers are becoming more optimistic about food prices. 74% expect food prices to get more expensive in the year ahead, the lowest level since April 2018
- 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
This optimistic sentiment should provide plenty of opportunity for both retail and foodservice as restrictions begin to lift and shoppers are able to socialise. Despite the optimism, confidence is still fragile; shoppers are very aware of the unstable situation, particularly among lower income households whose income and employment prospects have been negatively impacted by the pandemic
The full IGD Shopper Confidence Index is available to subscribers on IGD ShopperVista
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