Shopper confidence rises as Christmas nears
67% of shoppers believed that Christmas is a time to “splash out on food and groceries.”
As Christmas nears, shopper confidence has risen for the first time since April 2021.
The November 2021 Shopper Confidence Index, from ShopperVista revealed 61% of shoppers are looking forward to getting back to a ‘traditional’ Christmas following the dampened 2020 festivities with 67% thinking that the holiday is a time to “splash out” on food and groceries.
Shopper confidence increased throughout the month, reaching a high of -6 points at the end of the month, with an overall average of -9 points for the month versus -11 points in October.
However, shoppers are increasingly concerned about food price inflation, with 85% expecting food and grocery prices to increase in the year ahead and 29% expecting them to get much more expensive.
Other Index highlights include 21% saying they were more focused on saving money in the run-up to Christmas compared to 26% in October, 31% expect to be worse off in the year ahead, 3% less compared to the prior month.
Northern England and Scotland were also the only regions that didn’t see an increase in shopper confidence.
“Despite the decision by the Bank of England not to raise interest rates at the moment, the media has focused heavily on the rising cost of living. We expect shoppers to increase their focus on saving money at the start of 2022, to make up for any overspending at Christmas and prepare for the energy price cap which could see household energy prices jump by more than 40%,” said Rhian Thomas, ShopperVista’s head of insight.
“Shoppers remain highly sensitive to price rises and news of any shortages, which in turn impacts confidence. “Savvy shopping” will become increasingly prevalent again in the new year and value will be top of mind.
