Shopper confidence increased more in Scotland than the rest of the UK last month, according to the IGD Shopper Confidence Index for June.
This coincided with a sustained decline in Covid-19 hospital admissions and a lower mortality rate north of the border.
It marks a considerable turnaround from May, when Scottish shoppers were recorded as the least confident.
Shoppers across the rest of the UK also grew in confidence as lockdown restrictions continued to ease, bringing the overall figure for June up to -7. Despite remaining relatively low, this is an improvement on May’s -10.
Shoppers were less concerned with their household financial position last month. Expected financial confidence increased by 10 points to a score of -13, with 35% now expecting to be worse off in the year ahead, down from 47% in May and 50% in April. Sixteen per cent expect to better off, compared to 11% in May.
However, shopper confidence is likely to remain fragile as shoppers contend with the impact of a deep economic downturn in 2020, with lower GDP and significantly higher unemployment.
Confidence increased the most among 35 to 44-year-olds and those aged over 55.
Shoppers aged 45-64 remained the least confident. These shoppers, many of whom will have family responsibilities, may be concerned about the impact of Covid-19 on their health and economic prospects.
Simon Wainwright, Director of Global Insight at IGD, said: “Shoppers have been boosted by the easing of lockdown measures, the warm weather and low inflation. These factors may be holding back any reversal in shopper confidence for now.
“The economic impact of Covid-19, including rising levels of unemployment, is likely to have a big impact on shopper confidence going forward. An increased focus on savvy shopping can be expected where value becomes more important long term.”
The full IGD Shopper Confidence Index is available to subscribers on IGD ShopperVista.
