McKinsey&Company
Highlights from our Consumer Pulse survey
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Bracing for sluggish sales. Demand for everything from toothpaste to soft drinks surged during the COVID-19 pandemic, even as US consumer goods giants raised prices to cover increases in the cost of labor, materials, and shipping. But now, top industry leaders are bracing for a slowdown in sales: analysts say that US consumer confidence may decline as high inflation cuts into spending power. Some companies, anticipating that consumers will tighten their purse strings, are debuting more affordable products and streamlining packaging. [Reuters] |
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Party like it’s 2019. Many Americans are returning to the shopping, entertainment, and travel habits they had before the COVID-19 crisis began. Although it once seemed that people would be stockpiling cleaning products forever, year-to-date sales of hand sanitizer have dipped more than 50% from their levels a year ago. The spending habits and lifestyles of Americans changed dramatically in March, when many schools stopped enforcing mask mandates and COVID-19 got less press coverage. [WSJ] |
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No penny pinchers here. US consumers are embracing new ways of doing things as they go back to their familiar old behavior, McKinsey’s latest Consumer Pulse survey shows. Americans are spending more online, but they’re also returning to brick-and-mortar stores. They’re leaving their homes again but still spending on home improvement. Although inflation is at its highest level in 40 years, US consumers continued to open their wallets in early 2022. In March, US consumers spent 18% more than they did two years earlier, and credit card debt is rising again.
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Battle of the brands. Americans are still switching to different brands and retailers in 2022, and about 90% of them intend to keep shopping around, McKinsey analysis reveals. A top motivation for brand-swapping is concern over high prices. In light of inflation, US consumers are now looking for value, and when they decide what to buy, brand purpose is less of a factor now than it was in 2020. Explore seven charts (from our survey) that highlight how US consumers are feeling, shopping, and spending—and what companies can do to satisfy their quickly changing expectations.
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| — Edited by Belinda Yu |
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