Shoppers gloomy about 2011 financial prospects
A new study by international food and grocery analyst IGD has revealed the pessimistic outlook of the UK consumer in 2011.
The research shows that the majority, 61%, think they will be worse off in 2011 – more than double the same level in 2010. IGD’s ShopperTracker also found that 61% say they intend to cut down on eating and drinking out in the year ahead – while a further 56% will spend less on clothes.
And 32% said they would also cut down on their food shopping. However, IGD suspects this figure could be lower as a lot of people mistakenly believed that the VAT increase to 20% in January applies to all their food.
Joanne Denney-Finch, chief executive, IGD, said: “Shoppers are clearly feeling a lot more downbeat than they were last year and plan to do some major belt-tightening. Shoppers of all ages and across all socio-economic groups are telling us they intend to cut back on non-essentials, such as going to the theatre or on holiday.
“Shoppers seem to be less keen to economise on their food and grocery shopping, with only around a third (32%) citing this as a category they intend to spend less on. But this figure could be even lower, as our research also reveals that 32% of shoppers mistakenly believe that January’s VAT increase applies to all their food and grocery shopping.”