Consumer confidence continues to grow, with audiences returning to the high street

[26 June 2020] Throughout the Coronavirus pandemic grocery retailers were put to the test and convenience stores became increasingly important, with independents seeing growth of 69.3% according to Kantar. In the last four weeks, convenience retailers accounted for over 14% of all grocery spending, higher than average but lower than the peak we saw in April, where it reached 16%.

According to the Retail Data Partnership, which represents independent convenience retailers in the UK, the average basket total has fallen slightly, although it remains around £2 more than the pre-pandemic spend. The number of shopping trips made is still lower than the same period in 2019, however it is growing, suggesting that consumer confidence is growing. Kantar report that households made 77 million fewer trips to the grocers in the last four weeks, compared to last year, however it is still 19 million more than May.

Tesco reports suggest the opposite is happening at supermarkets, with increased basket totals and decreased footfall. The supermarket reported that the number of trips made by shoppers fell by nearly a third in the 13 weeks to 30 May, the amount being bought rose by 64%. While takings are up, Tesco and most, if not all, other retailers have seen significant increases in costs. PPE and protective screens, increased signage and higher staffing costs have all impacted profits.

Spending on essentials set to continue growing

Consumer insights from Deloitte also suggest that 48% of UK adults are happy to spend more in the sake of convenience. 47% of adults are still choosing brands that they trust, and 43% are still stockpiling their homes with more items than they need. Shoppers are also still prioritising essential items, with spending likely to increase on grocery, medicine and household goods, all of which are more likely to be purchased in store.