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: EuroShop 2023 – Prime time event of the global retail industry...
06.09.2022   #retail #digitization

EuroShop 2023 – Prime time event of the global retail industry

Hot topics that move retail now and in the future – from 26 February to 2 March 2023

Despite a turbulent climate EuroShop 2020 proved a resounding success. 94,339 visitors from 142 countries travelled to the Rhine to learn from 2,287 exhibitors from 56 nations about all aspects, innovations and trends in the global retail world. And ...

Thumbnail-Photo: Walmart Connect announces innovation partner program...
07.10.2022   #online trading #e-commerce

Walmart Connect announces innovation partner program

Strategic partnerships with TikTok, Snapchat, Firework, TalkShopLive and Roku

Consumers who turned to online shopping during the pandemic have chosen to stay there, with those returning to in-store relying on online research to guide their decisions. Consumers realized the importance of “connection” and were ...

Thumbnail-Photo: #DWMF Europe for top-level digital marketing insights...
09.08.2022   #digital marketing #event

#DWMF Europe for top-level digital marketing insights

DMWF Europe at the RAI in Amsterdam on 21-22 November

DMWF Europe returns to the RAI, Amsterdam on 21-22 November, for a must-see hybrid conference and exhibition bringing together the brightest minds in digital marketing. It’s three days of top-level strategic content, digital marketing ...

Thumbnail-Photo: 6 disruptive ideas for sales promotion in retail...
22.08.2022   #digital signage #consulting

6 disruptive ideas for sales promotion in retail

If you want to sell, you have to captivate, convince and inspire

"Creating a bridge between the product and the shopper" – that’s how one interviewee describes the goal of their marketing efforts. These diverse activities range from talking robots to virtual stores to treasure hunts. ...

Thumbnail-Photo: Gamification in retail: turning shopping into a game...
22.08.2022   #Tech in Retail #app

Gamification in retail: turning shopping into a game

Games and gamification can sound a little bit childish, but major enterprises love gamification as much as users love games

With the retention and engagement crises arise, the retail industry is looking for a remedy. Customer experience has become an important factor for success in retailing. Gamification appears to be a go-to tactic to enhance sales, brand awareness, ...

Thumbnail-Photo: First retailers announced for Royalmount shopping centre...
11.11.2022   #brick and mortar retail #retail

First retailers announced for Royalmount shopping centre

Louis Vuitton, Gucci, Tiffany & Co. and RH with new presence in Montreal's new Midtown destination

Royalmount, Montreal's future destination for over 170 stores including 60 restaurants and experiential attractions, has announced that Louis Vuitton, Gucci, Tiffany & Co., RH, Sandro and Maje have been confirmed for the major new retail and ...

Thumbnail-Photo: Food and beverage prices remain elevated in September...
17.10.2022   #online trading #e-commerce

Food and beverage prices remain elevated in September

IRI research reveals priceinflation slowed for first time in 2022

IRI’s latest insights on food inflation and impact on consumer shopping behavior illustrate relief consumers are finding in perimeter categories. ...

Thumbnail-Photo: How the COVID pandemic has upended brick-and-mortar retailing...
17.10.2022   #brick and mortar retail #customer satisfaction

How the COVID pandemic has upended brick-and-mortar retailing

Consumer behavior: “Ten years of digital transformation happened in two years”

There is no question that the Corona pandemic has changed the retail industry. Brian Dammeir, President North America at payment service provider Adyen, explains clearly which developments ...

Thumbnail-Photo: Launch of Walmart Land and Walmart’s Universe of Play...
14.10.2022   #omnichannel #food retail

Launch of Walmart Land and Walmart’s Universe of Play

Roblox community members can check out the Walmart ‘isles’ to collect verch, catch top music artists and unlock exclusive interactive content

Recently, Walmart announced the launch of two new immersive experiences in the metaverse mega-platform, Roblox. Called Walmart Land and Walmart’s Universe of Play, the spaces offer unique interactive content and entertainment for customers, ...

Thumbnail-Photo: More than one third of consumers plan to spend less this holiday season...
23.11.2022   #online trading #e-commerce

More than one third of consumers plan to spend less this holiday season

Consumer preferences for online shopping fluctuates while popularity of omnichannel shopping continues to climb

Applause has announced the 2022 results of its third annual global survey on holiday shopping trends. The research showed a marked increase in consumers returning to physical store locations. Eighty two percent of consumers said they were ...

Supplier

Canto GmbH
Canto GmbH
Lietzenburger Str. 46
10789 Berlin
iXtenso - retail trends
iXtenso - retail trends
Heilsbachstraße 22-24
53123 Bonn
salsify
salsify
7 rue de Madrid
75008 Paris
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf