Shopper confidence rises slightly as ‘savvy shopping’ to dominate in 2022: IGD

Most Britons feel that Christmas this year is a time to splash out on food and groceries, says recent IGD’s research indicating a rise in shopper confidence for the first time since April 2021 though ‘savvy shopping’ is expected to become prevalent in 2022.

Shopper Confidence Index has risen for the first time since April 2021 as people prepare for Christmas, says IGD’s Shopper Vista research, claiming that 61 per cent of Britons were found to be looking forward to getting back to a ‘traditional’ Christmas following the dampened 2020 festivities.

And with 67 per cent believing that Christmas is a time to splash out on food and groceries, shopper confidence increased to -9 November vs -11 in October.

Food price inflation seems to be playing the spoilsport as despite the apparent festive cheer, 85 per cent expect food and grocery prices to increase in the year ahead, and 29 per cent expect them to get much more expensive.

Almost 21 per cent of shoppers focused on saving money in the run-up to Christmas.

“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,” reports quoted Rhian Thomas, Head of Insight, ShopperVista, as saying.

“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 per cent.

“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.”