News • 12.05.2020

As pandemic spreads, most consumers retreat

How will today’s uncertain times affect consumer behavior?

Woman holding a small black purse in front of her
Source: PantherMedia/Andriy Popov

As a global health crisis potentially morphs into an economic one, Deloitte is conducting a series of biweekly surveys around the globe to better understand the interplay between personal safety and economic vulnerability as a driver of purchase decisions and consumer behavior. The responses provide insight into how consumers in different countries intend to weather this dual crisis.

Health and financial concerns remain relatively high worldwide

Global angst remains elevated when it comes to personal well-being and finances.

  • Health concerns are highest in China and India, the world’s two most populous countries: 89% of Chinese consumers and 79% of Indian consumers are concerned for their family’s health.
  • Concern in the U.S. remains elevated: 64% are worried about the health of others; 52% about their own health.
  • On average, across all countries, 42% of respondents who still had a job were concerned about losing their jobs. In the U.S., 35% of respondents are concerned about losing their job.
  • Respondents in Spain and India were also the most concerned about making upcoming payments. Among Americans younger than 55, one-third were concerned about making upcoming payments.
  • Forty-two percent of U.S. consumers are delaying large purchases.

Share of wallet shifting

Facing a great deal of economic uncertainty, a majority of consumers in most countries intend to curb their discretionary spending, and they may eventually look for ways to cut even their less discretionary spend to make ends meet. In fact, the survey notes that in many countries, most consumers’ net spending intent is to curb their discretionary spend over the next four weeks.

Americans will generally spend less on discretionary items like travel, eating out and automotive fuel, but 47% would buy a non-essential item if they found a great deal. U.S. consumers plan to spend more on necessities such as groceries, household goods and utilities; 55% of U.S. consumers report stockpiling. Nearly half of U.S. consumers (48%) will pay more for convenience to get what they need.

“Health risk and economic behavior are tightly intertwined. As long as personal health and financial concerns persist, consumer spending is likely to be restrained, except for essentials. Many economies are driven by consumption, so it’s not until the public feels safe that consumers will likely return to behaviors that were only recently taken for granted and economies, in turn, return to strength”, said Seema Pajula, vice chairman, U.S. industries and insights leader, U.S. consumer industry leader, Deloitte LLP.

Despite the rapid rise of online grocery orders, online grocery remains a fraction of in-store spending intention in the U.S. Only 19% of respondents plan on purchasing groceries online in the next four weeks. This may be tempered by available supply of delivery slots versus demand.

related articles:

popular articles:

Thumbnail-Photo: No business intelligence, no future
05.04.2021   #brick and mortar retail #data analysis

No business intelligence, no future

Why retailers should bet on data intelligence

Online store operators can track their visitors "at every click".  Many brick-and-mortar retailers, on the other hand, don't know much about their (potential) customers. Yet all industry experts agree: data is worth its weight in ...

Thumbnail-Photo: Digital signage creates more time for customers at 3...
20.06.2021   #customer satisfaction #digital signage

Digital signage creates more time for customers at 3

Telecommunication company 3 relies on electronic price tags

The staff members in the telecommunications company 3's stores do not have to worry about updating product information or prices, as all the stores have installed electronic price tags from the IT company Delfi Technologies. The stores can ...

Thumbnail-Photo: Hot on the trail of the newest trends
04.06.2021   #e-commerce #customer satisfaction

Hot on the trail of the newest trends

OTTO uses a new in-house tool for trend research

Together with Google, the online retailer OTTO has developed a dashboard that helps identify "whitespots" - missing brands and products. The tool called MANGO builds on Google's Merchant Analytics Center and, in addition to its own ...

Thumbnail-Photo: Livestream shopping: the sales channel of the future?...
03.05.2021   #e-commerce #mobile shopping

Livestream shopping: the sales channel of the future?

Interview with Alex von Harsdorf, Co-Founder and CEO of LIVEBUY

In Asia, and especially in China, livestream shopping has already been widespread for years. 10 percent of e-commerce sales are generated via livestream shopping, and experts predict that this share will rise to at least 25 percent in the near ...

Thumbnail-Photo: Shopping experience with interactive digital signage applications...
25.05.2021   #digital signage #brick and mortar retail

Shopping experience with interactive digital signage applications

Using lift & learn features and smart mirrors to activate customers

The advantage in traditional stores: customers can examine the items and pick them up. The advantage in e-commerce: There is a wide range of products and information. With the use of digital signage solutions, these two advantages can be ...

Thumbnail-Photo: Magical shopping experience
10.06.2021   #customer satisfaction #app

Magical shopping experience

Finally Harry Potter fans can visit the official Harry Potter flagship store New York City

Harry Potter New York will set a new standard for themed retail, combining breath-taking design, exquisite craftsmanship, hand-crafted props, exciting interactive elements and exclusive products - inviting fans to experience the Wizarding World in a ...

Thumbnail-Photo: QR-based aRC quick scan tool for display recycling...
15.06.2021   #brick and mortar retail #sustainability

QR-based aRC quick scan tool for display recycling

arken wants to help retailers improve the recycling of displays at their end of life in-store

Retail display specialist arken P-O-P International announced the launch of aRC – the arken Recycling QR Code to create an easy and accessible way for help retailers improve recycling of permanent and semi-permanent displays at their end of ...

Thumbnail-Photo: Benefits of investing in physical stores
28.06.2021   #e-commerce #brick and mortar retail

Benefits of investing in physical stores

The role of physical stores for selling "deep" products

Researchers from Colorado State University, Amazon, and Dartmouth College published a new paper in the Journal of Marketing that examines the role of physical stores for selling "deep" products.The study, forthcoming in the Journal of ...

Thumbnail-Photo: Attracting passers-by, not influencers
27.05.2021   #digital signage #POS marketing

Attracting passers-by, not influencers

How to attract customers with content marketing and digital signage at the point of sale

You think modern content marketing on digital screens at the point of sale (POS) is reserved for big brands and not for small retailers? Not at all, says Nils Drosin, Co-Founder and CEO of 4Dmagic. He is convinced that if retailers use their ...

Thumbnail-Photo: Reusable pop-up store
07.07.2021   #brick and mortar retail #sustainability

Reusable pop-up store

PANGAIA showcases high-tech naturalism at The Selfridges Corner Shop

In spring of this year PANGAIA offered its customers an extraordinary shopping experience. For the first time, customers were able to visit the PANGAIA pop-up store in The Selfridges Corner Shop, which was designed to literally guide them through ...

Supplier

Navori Labs
Navori Labs
Rue du lion d'or 4
1003 Lausanne
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen