Consumer Behavior
Consumer financial concerns not subsiding
May 27, 2020
The COVID-19 pandemic has more than a quarter of U.S. consumers worried about making payments and nearly half, 43%, are delaying large purchases given the economic fallout from the coronavirus and related job losses.
Those are top findings of a Deloitte report on consumer concerns with regard to financial issues as well as health issues.
There is a continued spike among millennials who report "immediate" financial concerns with 36% worried about meeting upcoming bills and payments and 37% of all consumers are concerned about losing their job, according a press release on the data. On average, across all countries, 40% of of those polled who still had a job were concerned about losing their jobs.
"With regard to consumer sentiment and behavior, we are observing some early positive signals across the world which should help give confidence to business leaders as they transition from responding to this crisis to rebooting their recovery. While the next few months will be full of challenges, consumers are demonstrating that they are eager to return to some semblance of normal life — even if cautiously. This sentiment can provide a solid foundation for business recovery," said Seema Pajula, vice chairman, U.S. industries and insights leader, U.S. consumer industry leader, Deloitte LLP, in the release.
Consumer behavior, including what consumers plan to buy, how they intend to buy it and why, continues to evolve within today’s dynamic environment, stated the release. Related findings include:
• More consumers feel safe going to the store: 42% of U.S. consumers feel safe going to the store, up significantly from 30% in April.
• In-store shopping intentions rise: The number of consumers who intend to predominantly purchase online is gradually falling, particularly in restaurants, but is also observable in categories such as apparel and electronics. For example, in early April nearly half (47%) of U.S. consumers were predominantly planning to transact with restaurants digitally in the upcoming month, but that number has recently dropped to 39%.
• Share of wallet easing: The strong spending swings initially measured during the COVID-19 peak, as consumers prioritized essentials, are no longer as pronounced. Planned cutbacks for the upcoming month around more discretionary categories such as restaurants, entertainment and travel are still present, although not as severe.
• While BOPIS intentions remain strong, fewer consumers are using it because of safety: While 82% of Americans plan to buy online and pickup in store in the next four weeks, only 40% of consumers plan to use it because of safety concerns (down from 48%). Nearly one-third (32%) of consumers plan to use BOPIS to avoid delivery costs.
• Consumers stick with the brand names they trust: Across the globe, 52% of consumers indicate they will stick with the brand names they trust. In fact, consumers who are more concerned about their family’s health are more likely to purchase name brands that were struggling prior to the crisis. Interestingly, 42% of consumers report they will purchase more from brands that have responded well to the crisis.
• Impulse purchasers outnumber stockpilers: While stockpiling remained the most prevalent retail behavior measured during the study’s initial waves (53% in mid-May, down from 56% in mid-April), consumers are now more likely to make an impulse purchase if they find a great deal on a non-essential item (55% up from 48%).
• Optimistic signals for hospitality: While leisure travel plans within the summer months remain relatively low, signs of optimism are emerging. Nearly one-third of U.S. consumers (31%) plan to stay in a hotel for leisure travel within the next three months, up from a low of 24% in mid-April.
• Consumer mobility sentiment: Nearly half of U.S. vehicle owners (49%) are planning to keep their current car longer than originally expected, and 27% of current owners are delaying regular maintenance for their vehicles. At the same time, a concern for personal well-being is causing a significant percentage of people to second guess their use of public transit (60%) and ride-hailing services (57%) over the next three months.
