Shopper Confidence Improves But Likely To Focus On Saving Money In 2022

Namnews, 6th December 2021

IGD’s Shopper Confidence Index has risen for the first time since April 2021 as people prepare for Christmas.

The ShopperVista research found that 61% of shoppers were looking forward to getting back to a ‘traditional’ Christmas following the dampened 2020 festivities. And with 67% believing that Christmas is a time to splash out on food and groceries, shopper confidence increased to -9 November vs -11 in October.

However, despite the apparent festive cheer, shoppers were found to be increasingly concerned about food price inflation. Expectations around price increases reached an all-time high: 85% expect food and grocery prices to increase in the year ahead, and 29% expect them to get much more expensive.

Other insights from the research included fewer shoppers being focused on saving money in the run-up to Christmas: 21% vs 26% October. Overall financial confidence also improved slightly, with 31% expecting to be worse off in the year ahead (-3% vs October) and 21% expecting to be better off (+1%).  

Rhian Thomas, Head of Insight, ShopperVista, commented: “Following the bleak picture the Shopper Confidence Index painted last month, it’s refreshing to see a slightly brighter outlook as we head into the festive period. Assuming that no more restrictions are put in place as a result of the Omicron variant, we expect confidence to be elevated throughout the month.

“However, it’s unfortunately not a longer-term story of Christmas cheer. 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%.

“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.”

NAM Implications:

• Sounds like a rise in savvy consumerism…
• …where demonstrable value for money is called for.
• Still, its Christmas soon, we all need a lift…
• …fingers crossed…