Consumer confidence has fallen to its second lowest level since 2013, following a decline in five out of the past six months, new research shows.
The October 2021 Shopper Confidence Index from ShopperVista – which provides category, insight and commercial professionals with shopper insights – shows shopper confidence fell to -11, down from -9 in September.
The research reveals concerns around food price inflation are at elevated levels, with 84% of shoppers expect food and grocery prices to increase in the year ahead, and a record 28% expect them to get “much more” expensive. As a result, with 26% of shoppers expecting to focus more on saving money in the year ahead, which is the highest level recorded in six years.
In addition, more high-income households believe they will be worse off (31%), than better off (20%) in the year ahead.
Shopper confidence is also declining across most age groups, but particularly among 25-34-year-olds and the over 45s.
Overall financial confidence has declined with 34% of shoppers expecting to be worse off in the year ahead, up 3% on September. Confidence has declined across all income groups, but particularly among lower income households, the research finds.
Simon Wainwright, Director of Global Insight at IGD, said: “It comes as no surprise that shopper confidence has decreased once again, following the steady decline we’ve seen in recent months. It paints a bleak picture for the winter and shoppers will remain highly sensitive to price rises and news relating to availability. With labour supply stretched thin and declining confidence, the Christmas trading period is likely to be a challenging time.”
He added: “While some households will look for ways to trade-up this Christmas to compensate missing out on last year, “savvy shopping” will become increasingly prevalent. People will shop around to get the best deals and private label products will grow in popularity. Value will be top of shoppers’ minds for the foreseeable future.”