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: Coronavirus: most Americans now using face masks...
15.05.2020   #brick and mortar retail #coronavirus

Coronavirus: most Americans now using face masks

New nationwide survey from Fast

A new nationwide survey from Fast shows that the vast majority of Americans – 88 percent – are now using face masks, but 19% want to personally receive a COVID-19 vaccine before they feel safe shopping in stores again, while another 29 ...

Thumbnail-Photo: Custom-tailored: new in-store safe shopping journey solution...
13.05.2020   #consulting #brick and mortar retail

Custom-tailored: new in-store safe shopping journey solution

Suitsupply reinvents retail experience including virtual pre-shopping

Suitsupply, the global men's tailoring brand built on radically personal customer experiences, launches new retail journey as stores reopen. The upside of being global, and the staggered timelines of the outbreaks around the world, is the ...

Thumbnail-Photo: Merchants can build their own businesses by choosing the right daily...
10.08.2020   #e-commerce #online platform

Merchants can build their own businesses by choosing the right daily deal platforms

Bargaining and the three-way transaction that defines the daily deal market

Researchers from the University of Maryland and Harvard University analyzed the bargaining process between the daily deal platforms Groupon as well as LivingSocial and merchants to identify the trade-offs made by both parties during the transaction ...

Thumbnail-Photo: Retailers say credit insurance plan could increase liquidity during...
15.07.2020   #retail #coronavirus

Retailers say credit insurance plan could increase liquidity during pandemic downturn

Backstop for trade credit insurance

The National Retail Federation welcomed a report released this week calling for a federal backstop for trade credit insurance, saying the proposal could help provide liquidity badly needed by retailers as they recover from the recession brought on ...

Thumbnail-Photo: 4 tips on how to handle customer complaints
13.08.2020   #consulting #customer satisfaction

4 tips on how to handle customer complaints

How you can effectively respond to negative reviews and use them to be a benefit to your company

Most retailers don’t like customer complaints. Plus, they also mean extra work. Yet ignoring complaints is not a great long-term strategy because any bad customer experience can haunt your brand if it becomes public. That’s why retailers ...

Thumbnail-Photo: Upturn for brick and mortar retail in city centres?...
17.07.2020   #brick and mortar retail #customer relationship management

Upturn for brick and mortar retail in city centres?

Economic development and city marketing about current measures

Bonn's inner city – like all other cities in Germany – is struggling with the consequences of the Corona lockdown. We asked directly on site what support there is from the economic development and city marketing departments. This ...

Thumbnail-Photo: Job maker 4.0: e-commerce
27.05.2020   #online trading #e-commerce

Job maker 4.0: e-commerce

Retail training and continuing education programs are booming

Digitization in retail and e-commerce growth present fresh challenges for retail employees and the retail world. That’s why interest in the new "E-Commerce Merchant" dual vocational training course offered by Germany’s HDE ...

Thumbnail-Photo: WhatsApp Business: A direct line to customers...
29.05.2020   #customer satisfaction #customer relationship management

WhatsApp Business: A direct line to customers

About the installation, functions and advantages of the app

WhatsApp is a popular communication channel used by millions of people worldwide. Now small and medium-sized retailers or restaurants can use WhatsApp Business to quickly and easily engage and interact with their customers and build customer ...

Thumbnail-Photo: The Virtual Africa Big Retail Expo 2020 (ABRE 2020)...
06.07.2020   #digital marketing #marketing research

The Virtual Africa Big Retail Expo 2020 (ABRE 2020)

The spotlight is on the emerging trends in the retail industry at The Virtual Africa Big Retail Expo 2020, set to take place on 6th August 2020

The event is scheduled to begin from 0900 EAT till 1400 EAT. This exhibition is the first annual event which is dedicated to discussing the following:How do retailers keep up as the world tries to deal with the enormous pressure to adapt to ...

Thumbnail-Photo: Sustainability is surviving COVID-19
27.07.2020   #sustainability #coronavirus

Sustainability is surviving COVID-19

Trends and consumer demographics for sustainable products and brands

The NYU Stern Center for Sustainable Business and IRI® published the results of new research examining consumer purchases of sustainability-marketed consumer packaged goods in the US and taking a closer look at the top 10 states in terms of per ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen