SHOPPER confidence has dropped to its lowest level in a year according to the Shopper Confidence Index from IGD.
The September 2021 results of the index showed that shopper confidence levels have dropped down to -9, from -4 in August’s.
The Shopper Confidence Index highlights the concerns that many consumers have over food price inflation, with 85% of shoppers expecting the food to become more expensive next year.
Simon Wainwright, director of global insight at IGD, said: “This month’s Shopper Confidence Index is a sobering read and we anticipate it will be a similar story next month, following the steady decline we’ve seen throughout September.”
Confidence has declined across the board for shopper demographics, but more so across lower-income households with 42% expecting to be worse off in the year ahead compared to 26% from August. Higher-income households have similar concerns with 30% now expecting to be worse off.
Simon said: “Moving forward, shopper focus will be on value for money and we will see much wider adoption of the 2021 ‘savvy shopping’ trend as shoppers look to save money, with many switching to private label products, motivated by seeking out savings.
“The discount channel is forecast to be the fastest-growing grocery channel over the next five years, and we will see many shoppers shift their shopping behaviour to make cost-saving from this channel.
“Shopper confidence will remain very fragile for the foreseeable future so retailers and suppliers will need to focus on building up loyalty by supporting customers’ needs by offering value for money.”