Shopper confidence stable, says IGD

IGD shopper confidence index july 2020

Shopper confidence remained generally stable last month, according to the IGD Shopper Confidence Index for July.

The index came in at -8, slightly down on June’s -7.

However, shopper confidence is starting to experience regional differences as local lockdowns become a reality across the country.

Confidence increased in Scotland, for example, but plunged from -3 in June to -9 in July in the north of England, after a spike in Covid-19 cases throughout the area. Wales also saw a large decline in confidence, falling from -1 in June to -13 in July. Scotland will no doubt see a similar fall next month in the wake of the recent coronavirus flare up and resulting lockdown in Aberdeen.

The latest results also reveal distinct differences emerging between demographic groups, with younger shoppers aged 18-24 more confident in July with score of +3, the highest level since Aug 2019. In contrast, those aged 65+ were less confident in July. These shoppers are more fearful of food price inflation (+3% vs June 2020) and more fearful they will be worse off financially in the year ahead (+7%).

Simon Wainwright, Director of Global Insight at IGD, said: “As local lockdowns are enforced across the country we will likely see more of a split in confidence between regions as the impacts of Covid-19 become more localised.

“It is likely that younger shoppers have been particularly boosted by the generally warm weather and the relaxation of some lockdown measures including the reopening of non-essential retail and the hospitality sector.

“We predict that shopper confidence is likely to remain fragile as shoppers contend with the impact of a deep economic downturn in 2020.”

The full IGD Shopper Confidence Index is available to subscribers on IGD ShopperVista.