Shopper confidence remains at low levels: IGD
COVID-19’s economic impact is said to likely have a big impact on shopper confidence in the future.
Shopper confidence remains at one of the lowest levels on record, new data from IGD Shopper Confidence Index has revealed.
But despite overall confidence staying low, the insights agency noted significant differences in confidence between regions, with shoppers in London feeling most confident.
Positivity towards the food and consumer goods industry also remains as trust sits at a seven-year high.
The Index noted that shopper conference is at -10 which, despite its negative position, is the first time the figure has stayed at the same level as previous months.
Expected financial confidence increased by two points to a score of -23, with 47% of shoppers now expecting to be worse off in the year ahead, down from 50% in April.
Trust in the industry has remained unchanged in May, at +31.
IGD said an easing of lockdown measures and the good weather may be holding back further declines in shopper confidence but says the economic impact of COVID-19 is “likely to have a big impact on shopper confidence in the future.”
Shopper confidence has also increased the most in London, which comes as London has seen a steeper drop in COVID-19 hospital admissions over the last month than any other region. In contrast, Scottish shoppers are least confident.
Per age group, older shoppers aged 45-64 remain the least confident.
“Despite the low levels of overall confidence, it is encouraging that trust in the food and consumer goods industry remains high, suggesting that shoppers are increasingly appreciating the work of the sector throughout the pandemic,” IGD director of global insight Simon Wainwright said.
“We are also seeing significant changes by region, reflecting how COVID-19 is impacting different parts of the country. As such, retailers need to keep an eye on how the pandemic is impacting different shopper groups as they plan for an evolving trading environment.”
