Shopper confidence rises slightly ahead of Christmas, says ShopperVista

By Éilis Cronin in Industry News 6th December 2021

Retailers have received a welcome boost for Christmas, as a benchmark survey suggests that shopper confidence has risen for the first time since the Spring.

The November 2021 shopper confidence index, from ShopperVista, has risen for the first time since April.

Even so, it remained in negative territory, rising from -11 to -9 over the month. The index can vary from -100 to +100, where -100 is a very negative outlook and +100 is a very positive outlook.

It produces a monthly indication of British shoppers’ food and grocery confidence, with trended data going back to 2013.

The analyst said that 61% of shoppers are looking forward to a traditional Christmas following last year’s curtailed celebrations, with 67% saying that it is a time to splash out on food and groceries.

Key figures from the index included fewer shoppers being focussed on saving money in the run-up to Christmas (21% versus 26% in October); and better financial confidence, with 21% expecting to be better off in the New Year (up 1%) and the percentage expecting to be worse off down from 31% to 28%.

Even so, there was still concern about food price inflation, with 85% expecting grocery prices to increase in 2022.

Rhian Thomas, head of insight at ShopperVista, said: “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.

“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%.

“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.”