Deloitte: Consumer Convenience Rules, but Financial Concerns Dampen Spending Habits in the US
- Safety perceptions show positive momentum with 61% of adults saying they “feel safe” going to the store, up from a low of 30% in April.
- Following a post-summer slide, demand for leisure travel picks up in time for the holiday season, with improvements in consumer appetite for travel.
- However, 29% of all survey respondents noted that they were struggling to make upcoming payments; this number surged to 46% among adults 18-34.
- Contactless buy online pick-up in store (BOPIS) is rapidly accelerating as consumers see it as a cheaper alternative to traditional delivery (36%), faster than in-store shopping (34%) and a safer alternative (32%).
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Why this matters
As a global health crisis has morphed into an economic one, Deloitte is conducting a series of monthly 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 most recent iteration (fielded Oct. 29 – Nov. 5) of “Deloitte’s Global State of the Consumer Tracker,” conducted in 18 countries, queried at least 1,000 consumers in each country. The responses provide insight into how consumers across the globe intend to weather this dual crisis.
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Safety perceptions slowly improve, but financial uncertainty persists in the U.S.
While consumer safety perceptions are slowly improving, financial stress continues to be an increasing area of concern for consumers in the U.S., as the last round of economic relief expired.
- Twenty-nine percent of U.S. respondents noted they were struggling to make upcoming payments.
- Adding to concerns regarding meeting future financial obligations, 61% of U.S. respondents indicated spending the same, or more than their current income.
- For those under the age of 54, financial concerns are further exacerbated with 39% of Americans citing concern about their credit card balances, and 42% worried about how much money they have in their savings.
- On a more positive note, from April 9 through Nov. 5, sentiment more than doubled from 30% to 61% for consumers who say they feel safe visiting a store. Additionally, 27% of U.S. respondents said they would feel safe attending school in-person, and slightly less than half (49%) noted they would feel safe returning to their workplace.
Key quote
“As we saw earlier this year, health concerns and spending are closely intertwined. Consumers are beginning to feel more comfortable with resuming some activities of pre-pandemic life despite a third wave rising in the U.S. With the expiration of stimulus funding and continued unemployment levels, financial concerns are on the rise. Overall discretionary consumer spending is also likely to be restrained. Increasingly, the average consumer will be looking to contactless commerce, convenience and bargains throughout the remainder of 2020.”
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