Concerns around rising inflation increasing: IGD

However, confidence among younger shoppers has increased for the first time since April 2021.

Shopper confidence took a further dip as rising inflation concerns continue, according to IGD.

The company’s July 2021 Shopper Confidence Index revealed 79% of shoppers expect food prices to get more expensive next year, compared to 75% in July this year.

The August Shopper Confidence Index also saw a widening of the K-shaped economic recovery, with 28% of higher affluence groups expecting to be better off in the year ahead, compared to 23% in July 2021. Meanwhile, lower affluence groups increasingly believe they will be worse off in the year ahead, with 26% believing this compared to July’s 23%.

Shopper confidence slipped back slightly to -4 in August, having declined for three of the last four months. However, IGD saus it remains relatively high and is still at one of the highest levels in the last five years.

Confidence among younger shoppers has increased for the first time since April 2021, with 37% of 18–44-year-olds expecting to be better off in the coming year.

Overall, financial confidence remains relatively high with 24% expecting to be better off in the year ahead, up 3% compared to July.

Shopper confidence is notably declining in Scotland, registering -7 on the index compared to -2 in July 2021, amid growing COVID cases and warnings that restrictions may have to be reimposed.
Simon Wainwright, Director of Global Insight at IGD, said: “The continued rise in inflation concerns are likely to lead to a sudden return to risk-aversion and more value-seeking behaviour, particularly among families who are hard-pressed financially.”

“Retailers will need to pay close attention to the widening K-shaped recovery; lower affluent families will increasingly seek out value, so special offers, everyday low prices and visits to discount stores will become prominent. On the reverse, more affluent shoppers will continue to trade up and focus on quality due to increased disposable income created by pent-up savings.”

Join QSRMedia UK community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The restaurant will have a floor dedicated to takeaway transactions.
It is seeking franchisees interested in single or multi-unit operations immediately.
The pizza franchise already has over 500 stores in the UK.
The pop-up arrives roughly five months after the chain tried one in Cologne, Germany.
The chain’s rollout of outlets will see them reach nearly 100 UK sites by the end of summer 2022.
The chain, whose city centre outlets were hit hard by COVID-19 restrictions, describes the move as the next step in its ‘transformation” strategy.
This will be the brand’s 74th UK restaurant opening.
Flipdish UK country manager Fionn Hart makes a case for digital interface solutions as an answer.
The CGA Prestige Foodservice Price Index predicts continued inflation over the remainder of 2021.
It is slated to have 100 restaurants over the next five years as part of a master franchise deal.
Its founder says the chain’s on the road to recovery.