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Retailers 'must build emotional connect' with shoppers: IGD

Shoppers browsing grocery aisles as IGD predicts cautious spending trends in 2030

Shopper spending trends in 2030

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Shoppers, especially those on a lower income, are expected to continue spending with caution for the foreseeable future, predicts a leading industry analyst, stressing that retailers must build emotional connections with shoppers.

IGD has released a new report that examines the economic and demographic trends expected to shape the next five years for shoppers, retailers, and the food and grocery industry.


According to the report titled "Shoppers in 2030", single households are projected to contribute 95 per cent of the overall growth in the number of households, the growing population will create a higher demand for housing.

With disposable income levels unlikely to grow significantly, shopper confidence will remain subdued, impacting volume spending.

The food and grocery industry is expected to be somewhat protected compared to other industries, but IGD states that retailers must build emotional connections with shoppers.

The report highlights the need for retailers and manufacturers to produce the right products for the right shopper.

The report adds that as shoppers remain less confident in the years to come, their ability to focus on their health will likely be impacted. However, with an increasing prevalence of obesity, it will be up to the food and grocery industry to continue providing accessible healthy foods for shoppers.

Similarly for sustainability measures, while shoppers may not prioritise the impact on the environment in each of their product purchases, the food and grocery industry will need to lead the way to make meaningful change for the food system, states the report.

“The outlook is far from positive news for retailers and manufacturers,” said Bryony Perkins, Senior Insights Analyst at IGD.

“We expect shoppers to continue spending with caution for the foreseeable future, especially those on a lower income. This means volume challenges are set to continue. '

"The silver lining for food and grocery is that shoppers will still look to treat themselves in small ways. Retailers and manufacturers should look for ways to help shoppers elevate the everyday with small, affordable treats.”

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