Shopper confidence has held up despite Omicron, says IGD

By Éilis Cronin in Industry News 7th January 2022

Consumer confidence in December was a battle between excitement over Christmas and fear of the Omicron variant, according to the latest index from the Institute of Grocery Distribution (IGD).

The latest data in the institute’s Shopper Confidence Index revealed that the result was no change in levels of confidence when compared with Christmas last year, even though there was a “slight return to normality”.

Financial confidence remained stable from November, with 31% expecting to be worse off in 2022 and 20% expecting to be better off.

It was noted that shoppers remain concerned about rising food prices, with 86% expecting increases in the next year. This is the highest level since the start of 2016.

Rhian Thomas, head of insight at IGD ShopperVista, said: “It’s encouraging to see that overall confidence remained unchanged from November.

“Despite increased restrictions causing a dip in the first week, it’s clear that time spent with friends and family over Christmas helped to bolster confidence significantly by the end of the month.

“Assuming no further restrictions are introduced then shopper confidence may be sustained in early 2022.

“However, this is likely to remain fragile in the first quarter as shoppers contend with a double whammy of the energy price cap review and the National Insurance increase in April.

“This will hit the lowest affluence groups hardest, as a higher proportion of their income goes on food, drink and energy, meaning that their recovery is slower than higher affluence groups.”