European consumers are gradually returning to pre-COVID-19 spending and out-of-home activities, including holiday shopping, though some pandemic-related practices will continue.

1. McKinsey & Company 1
Five emerging consumer themes in October 2021
1 2
Source: McKinsey & Company COVID-19 Consumer Pulse Surveys
5
4
3
Optimism and spend
intent returning
Consumer optimism
regarding economic
conditions after
COVID-19 up by more
than 50% since February
(from 21% to 34%);
strongest growth in spend
intent for out-of-home
entertainment and travel,
but most categories are
increasing
Omnichannel is the
new reality
For more than half of
European consumers,
omnichannel shopping is
reality across product
categories; consumers
empower themselves
with apps and shift to
remote/digital delivery
where they used to
use/shop on-site
Holiday season to
see return to stores
Neutral feelings toward
holiday season dominate
(48%), followed by equal
mix of excitement and
stress (26%); almost half
of consumers (48%) plan
a return to stores for
holiday shopping, and
younger ones expect to
be strongly influenced by
social media
Out-of-home activi-
ties rebounding
Engagement in normal
out-of-home activities
surged from 11% in
February to 51% in
October, driven by
work, day-to-day
necessities, and
meeting friends and
family; however, 74%
cautious due to Delta
variant
Loyalty is under
threat
In case of unavailability
of a product sought,
more than half of
consumers went to
another retailer to shop;
overall shopping
behavior shifted as 66%
tried new behaviors
since COVID-19 started
and 37% tried new
brands

2. McKinsey & Company 2
Confidence in own country’s economic recovery after COVID-191
% of respondents
15 14 13 17 17 22 21
22 32
41
49 52
50 50
46
65
74
67
44
37 35 33 33 32
14
5 1
Mixed: The economy will be
impacted for 6–12 months or
longer and will stagnate or show
slow growth thereafter
Pessimistic: COVID-19 will
have lasting impact on the
economy and show regression
or fall into lengthy recession
Optimistic: The economy will
rebound within 2–3 months and
grow just as strong as or
stronger than before COVID-19
Optimism at similar levels across five European countries
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.” Bars may not sum to
100% due to rounding.
Optimism and spend intent returning | Current as of October 2021
US Germany
10/15–22
UK
10/15–22
10/9–15
Italy
10/15–22
France
10/15–22
Change in % optimistic vs
Feb survey, percentage points
+3 +3
+13 +14
+18
Spain
10/15–22
+16
India
10/18–25
+3
Source: McKinsey & Company COVID-19 Consumer Pulse Survey
China
10/17–22
+6 +2
Japan
10/18–20

3. McKinsey & Company 3
30 30 32 30 31 31
24
17
52 55 53 55 54 53
55
49
18 15 15 15 14 16
21
34
Oct 2021
Feb 2021
May 2020 June 2020
Mar 2020 Sept 2020
Apr 2020 Nov 2020
Optimism and spend intent returning | Current as of October 2021
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.” Figures may not sum to
100% because of rounding.
2. Average of biweekly pulse surveys shown for Mar–May 2020.
Optimistic: The
economy will rebound
within 2–3 months and
grow just as strong as or
stronger than before
COVID-19
Mixed: The economy will
be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-19
will have lasting impact
on the economy and
show regression or fall
into lengthy recession
Source: McKinsey & Company COVID-19 Europe Consumer Pulse Survey, 10/15–10/22/2021, n = 5,081 (France, Germany, Italy, Spain, UK); 2/23–2/27/2021, n = 5,139 (France, Germany, Italy, Spain, UK); 11/9–11/16/2020, n = 5,232; 9/24–
9/27/2020, n = 5,338 (France, Germany, Italy, Spain, UK); 6/18–6/21/2020, n = 5,645; 5/21–5/24/2020, n = 5,641; 4/30–5/03/2020, n = 5,631; 4/16–4/19/2020, n = 5,623; 4/2–4/5/2020, n = 5,645, 3/26–3/29/2020, n = 5,614; 3/20–3/23/2020, n =
5,035 (Italy, France, Germany, Spain, UK, Portugal), sampled to match the Europe general population 18+ years
Overall optimism has significantly increased since February 2021,
rising from 21 percent to 34 percent
Confidence in own country’s economic recovery after COVID-19,1 % of respondents
20202 2021

4. McKinsey & Company 4
Increased confidence across markets in October; UK has leveled out
since February
t pulse from week 23rd March, 2020 next pulse insights coming April 1, 2020
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6
“very pessimistic.” Figures may not sum to 100% because of rounding. Last weekly survey conducted in Apr 2020 covered first 3 days of May.
37 40 34 35 37
32
22
51 49
49 53 52
50
46
12 11 17 12 11
18
32
Apr
2020
May
2020
June
2020
Oct
2021
Sept
2020
Nov
2020
Feb
2021
17 16 16 17 18 17 14
60 64 63 66 59
49
23 20 21 17
23 24
37
Apr
2020
59
Sept
2020
May
2020
June
2020
Nov
2020
Feb
2021
Oct
2021
35 37
31 26
33
21
14
51 49 57
60
54
62
51
14 14 12 14 13 17
35
June
2020
Apr
2020
Feb
2021
May
2020
Oct
2021
Sept
2020
Nov
2020
42 39 39 42 40
31
17
43 47 48
47 47
52
50
15 13 13 11 14 17
33
Oct
2021
June
2020
Sept
2020
May
2020
Apr
2020
Nov
2020
Feb
2021
24
35 30
37
31
18 17
58
50 55 47
52
53 50
18 15 15 17 17
30 33
June
2020
Oct
2021
May
2020
Apr
2020
Sept
2020
Nov
2020
Feb
2021
Optimistic Pessimistic
Mixed
Confidence in own country’s economic recovery after COVID-191
% of respondents
UK France
Germany Italy
Spain
Source: McKinsey & Company COVID-19 Europe Consumer Pulse Survey, 10/15–10/22/2021, n = 5,081; 2/18–2/22/2021, n = 2,076; 11/9–11/13/2020, n = 2,024; 10/23–10/27/2020, n = 2,021; 9/18–9/24/2020, n = 1,026; 8/19–8/23/2020, n =
2,026; 7/30–8/2/2020, n = 2,024; 7/7–7/12/2020, n = 1,923; 6/15–6/21/2020, n = 2,006; 6/1–6/7/2020, n = 1,966; 5/18–5/24/2020, n = 1,975; 5/11–5/17/2020, n = 2,002; 5/4–5/10/2020, n = 1,993; 4/27–5/3/2020, n = 2,105; 4/20–4/26/2020, n =
1,052; 4/13–4/19/2020, n = 1,052; 4/6–4/12/2020, n = 1,063; 3/30–4/5/2020, n = 1,484; 3/23–3/29/2020, n = 1,119; 3/20–3/22/2020, n = 1,073; 3/16–3/17/2020, n = 1,042, sampled to match the Europe general population 18+ years
Optimism and spend intent returning | Current as of October 2021

5. McKinsey & Company 5
1. Q: Which best described how you have researched the following categories over the last 3 months?
2. Q: Which best describes how you have purchased the following categories over the last 3 months?
46
44
40
36
35
31
29
29
28
28
24
24
23
23
21
19
19
18
15
15
11
54
52
55
57
54
61
61
55
61
60
59
55
66
58
61
63
57
67
67
66
57
4
5
7
11
8
10
16
11
12
17
21
11
19
18
18
24
15
18
19
32
46
44
40
36
35
31
29
29
28
28
24
24
23
23
21
19
19
18
15
15
11
54
52
55
57
54
61
61
55
61
60
59
55
66
58
61
63
57
67
67
66
57
4
5
7
11
8
10
16
11
12
17
21
11
19
18
18
24
15
18
19
32
Vehicles
Toys and baby supplies
Meal at restaurant
Groceries/food for home
Personal-care products
Kitchen and dining
Vitamins, supplements, and OTC medicine
Pet food and supplies
Meal at quick-service restaurant
Skin care and makeup
Fitness and wellness services
Books, magazines, and newspapers
Footwear
Home improvement, gardening supplies
Jewelry
Accessories (eg, handbags, sunglasses)
Sports and outdoors equipment, supplies
Apparel
Food takeout and delivery
Home decoration, furniture
Consumer electronics
Omnichannel
Research and purchase only in-store Research and purchase only online
Omnichannel shopping is reality for more than half of consumers
in all categories, with home-related, sports, and apparel strongest
Omnichannel is the new reality | Current as of October 2021
Product searches1 and purchases2 by channel
% of respondents who purchased in these categories in the last 3 months
Source: McKinsey & Company COVID-19 EU Consumer Pulse Survey, 10/15–10/22/2021, n = 5,081 (France, Germany, Italy, Spain, UK), sampled and weighted to match
the Europe general population 18+ years

6. McKinsey & Company 6
Many consumers switched retailer or brand if they could not make
a purchase as planned
Loyalty under threat | Current as of October 2021
1. Q: Over the last 3 months, have you wanted to buy something and not been able to purchase it because it was out of stock or otherwise not available?
2. Q: The most recent time this happened (when you wanted to buy something and it was not available), what did you do?
Respondents who planned to purchase
something but could not, due to unavailability1
% of respondents
32
26
20
15
7
Bought a different brand or similar
product at a different retailer
Bought the product at
a different retailer
Did not buy anything
Waited until product was
availabile at the same retailer
Bought a different product
at the same retailer
Consumer responses to stockouts2
% of respondents who could not make a planned purchase
55
45
Oct 2021
Could not purchase
at least 1 item
Able to purchase
all items
Source: McKinsey & Company COVID-19 Europe Consumer Pulse Survey, 10/15–10/22/2021, n = 5,081 (France, Germany, Italy, Spain, UK), sampled to match the Europe general population 18+ years

7. McKinsey & Company 7
Out-of-home activities rebounding | Current as of October 2021
51
11
12
37
27
11
May 2020
Oct 2021
Sept 2020
Nov 2020
Feb 2021
June 2020
Overall
Vaccinated
52
Unvaccinated
37
53 50
48
Gen X
Gen Z Baby boomers3
Millennials
52
High (>€50k)
Low (<€25k) Medium
(€25k–50k)
49 50 54
1. Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart shows those already participating in these activities.
2. Gen Z are people under 25 years old, millennials are 25–44 years old, Gen X are people 45–54 years old, baby boomers are 55 years old and above.
3. Baby boomers includes silent generation.
4. Income brackets shown in € apply for France, Germany, Italy, Spain, for UK same brackets were used with £.
Source: McKinsey & Company COVID-19 Europe Consumer Pulse Survey, 10/15–10/22/2021, n = 5,081 (France, Germany, Italy, Spain, UK); 2/23–2/27/2021, n = 5,139 (France, Germany, Italy, Spain, UK);
11/9–11/16/2020, n = 5,232; 9/24–9/27/2020, n = 5,338 (France, Germany, Italy, Spain, UK); 6/18–6/21/2020, n = 5,645; 5/21–5/24/2020, n = 5,641; sampled to match the Europe general population 18+ years
By
generation2
By
vaccination
adoption
By income4
53%
of Gen Z are doing out-
of-home activities
54%
of higher-income
households are doing
out-of-home activities
52%
of people who are
vaccinated are doing
out-of-home activities
Consumers engaging in ‘normal’ out-of-home activities,1 % of respondents
Even with the Delta variant present, more than half of European
consumers say they are engaging in ‘normal’ out-of-home activities

8. McKinsey & Company 8
Three themes are emerging among European consumers for the
2021 holiday shopping season
Consumers return to stores
Almost half of consumers (48%) plan
to go to stores in person for shopping,
though Gen Z plans to research even
more on social media (46%) than in
stores (45%)
Spend pulled forward Loyalty switching at play
Many consumers (37%) are spending
earlier than last year in light of
potential product shortages (45%),
shipping delays (36%), and concern
about unexpected COVID-19
challenges (39%)
76% of consumers say they will shop
differently than last year, with the
biggest switch to shopping more
online (33%); loyalty may be
challenged, as consumers indicate
price is a key driver for determining
where they will shop
1 2 3