IGD Viewpoint April 2023: Time to plan for a weak recovery?

• UK economic outlook

- Expect food inflation to decline slowly, halving by the end of the year 

- Most households are expected to be worse-off financially in 2023 and 2024 

- No recession is expected, but the economy will remain weak and fragile 

- Businesses must now re-focus, moving from crisis management, to planning for recovery and building resilience

• How are consumers faring?

- Fewer consumers are planning to cut back spend across a range of activities 

- Saving money is becoming less important, offering opportunities to rebuild brand and retailer loyalty 

- Consumers are now less fearful about food prices 

- Businesses should provide support for lower income consumers and highlight added value product benefits

• Developments in government policy

- The Windsor Framework safeguards the interests of grocery shoppers in Northern Ireland 

- The Target Operating Model reduces the need for checks on imports 

- Policies to address labour shortage including expanded childcare and pension changes are welcomed 

- Extended Producer Responsibility and the Scottish Deposit Return Scheme weigh heavy on the minds of industry

Full report: https://igdfiles.igd.com/websiteassets/Portals/0/downloads/Content/Viewpoint-2023-Time-to-plan-for-a-weak-recovery.pdf