1.
McKinsey & Company 1
The invasion of Ukraine in February 2022 has had deep human, as well as social and economic,
impact across countries and sectors.
The implications of the invasion of Ukraine are also rapidly evolving and inherently uncertain.
As a result, this document and the data and analysis it sets out should be treated as a best-efforts
perspective at a specific point of time, which seeks to help inform discussion and decisions taken
by leaders of relevant organizations.
The document does not set out economic or geopolitical forecasts and should not be treated as
doing so. It also does not provide legal analysis, including but not limited to legal advice on
sanctions or export control issues.

2.
McKinsey & Company 2
Three emerging consumer themes in April 2022
New sources of concern and
tumbling confidence in overall
economy
Sharply rising prices on essentials
with noticeable consequences on
spend
Noticeable activity, demand, and
channel and brand shifts in search
for value for money
1 2 3
How do consumers feel? What do consumer observe? How are consumers reacting?
The top source of concern for Spanish consumers
is rising prices, cited by 47%, followed by the
invasion of Ukraine (21%)
42% of Spaniards are pessimistic about
economic recovery, in contrast to 17% in October
2021
The main reasons for the negative view are
gasoline shortages (cited by 46%), supply chain
shortages (44%), and the unemployment rate
(37%)
94% of Spanish consumers have perceived a
price change, almost always an increase
Perceptions of price increases are particularly
high in groceries (cited by 95%), pet food (80%),
and personal care (77%)
On top of that, 62% of Spanish consumers predict
that prices will keep rising
Half of consumers say that in the last 6 weeks,
they tried a private-label brand, 30% a new brand,
and 30% a new retailer, with 34% shopping more at
discounters
A majority of grocery consumers have traded
down or switched to private labels, particularly in
household products, snacks, and dairy; value and
price are the main reasons to try a new brand
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years

3.
McKinsey & Company 3
Despite the pandemic’s continuing grip on societies in Europe,
rising prices and invasion of Ukraine have now by far overtaken
COVID-19 as top concerns for consumers
Germany UK Italy
France2 Spain
1. Q: Which of the following is your top concern today? Figures may not sum to 100%, due to rounding.
2. For France, political insecurity (9%) and immigration (8%) are concerns mentioned by more than 5% of consumers.
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
12
5
7
8
24
44
Europe 5
9
21
11 9 8
7
8
6
11 14
8
6
7
11
7
34
18
15
32
21
40 44
60
32
47
3
3
2 4
4
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Unemployment/job security
Extreme weather events
Other
Top source of concern1
% of respondents

4.
McKinsey & Company 4
Rising prices emerges as the top concern among Spanish
consumers, followed by the invasion of Ukraine and unemployment
83
58
47
41
23
22
14
10
1
1
Cost/accessibility of healthcare
Rising prices
Extreme weather events/climate change
Invasion of Ukraine
Unemployment/job security
COVID-19 pandemic
Political uncertainty
Immigration
Brexit
Other
1. Q: What are the greatest source(s) of concern for you right now? Please select the top 3.
2. Q: Which of the following is your top concern today?
47
21
14
7
3
3
2
3
1
0
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
Among top 3 sources of concern1 Top source of concern2
Top sources of concern today
% of respondents

5.
McKinsey & Company 5
Concern about rising prices is consistent across consumer groups;
relevance of the invasion of Ukraine varies by age and income
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
8
7
14
21
47
3
Overall
6 10 9
8
5 9
21
8 10
15
25
26
47 49 45
High
income
3
3
Low
income
1
Middle
income
11 10 8
8
10
20 17
16
6
16 15 21
29
46 48 47 47
4
2
Baby
boomers
Gen Z
5
3
Millennials
3
Gen X
2
5
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Unemployment
Extreme weather events
Other2
1. Q: Which of the following is your top concern today?
2. Other includes immigration, cost and accessibility of healthcare, Brexit, and political uncertainty.
Top source of concern1
% of respondents
Split by generation
Split by income

6.
McKinsey & Company 6
Ukraine invasion particularly concerns baby boomers and high-
income consumers; low-income consumers focus on rising prices
1. Q: Which of the following is your top concern today? Figures may not sum to 100%, because of rounding.
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
83
58
47
41
23
22
14
10
1
1
Rising prices
Invasion of Ukraine
Unemployment/job security
Extreme weather events/climate change
COVID-19 pandemic
Immigration
Political uncertainty
Cost/accessibility of healthcare
Brexit
Other
86
52
55
38
24
21
15
8
1
2
81
62
43
42
22
21
15
11
1
1
78
65
35
46
22
29
11
14
1
0
79
58
48
32
39
20
18
6
1
0
84
49
51
34
22
28
17
11
3
2
82
61
50
41
20
21
13
11
0
1
84
64
38
51
19
20
11
11
1
2
Top 3 sources of concern1
% of respondents
Middle
income
High
income
Low
income Millennials Gen X
Gen Z
Baby
boomers
Split by generation
Split by income

7.
McKinsey & Company 7
Almost two out of three consumers are negative about their own
country’s current state of the economy, with Spain having the
highest share of negative responses
55 58 61 63 67
32 29 24 26 22
13 13 15 11 11
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
61
27
13
Positive
Neutral
Negative
Net confidence2 −42 −56
−52
−45 −46
−48
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories “very positive” and
“positive” as well as “very negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Calculated by subtracting all "negative" answers from all "positive" answers.
Confidence in own country’s current state of the economy1
% of respondents
Germany UK Italy
France Spain
Europe 5

8.
McKinsey & Company 8
Only 11 percent of consumers view the economy positively, though
higher-income and younger consumers have more positive views
67
22
11
Negative
Overall
Positive
Neutral
70 65 67
21 24 16
17
High (>50K)
11
9
Low (<25K) Middle
(25K–50K)
70 59 69 73
16 26
23 19
14 15
Gen Z
8
Millennials Gen X
9
Baby boomers3
By income2
By generation
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories
“very positive” and “positive” as well as “very negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Income brackets shown in € apply to France, Germany, Italy, Spain; for UK, the same brackets were used with £.
3. Baby boomers includes silent generation.
Confidence in own country’s current state of the economy1
% of respondents

9.
McKinsey & Company 9
Spanish consumers concerned about rising prices and the invasion
of Ukraine are more pessimistic about the current economy
73 67
54 51 45
18 22
31 32 38
10 10 15 17 17
COVID-19
pandemic
Invasion of Ukraine Political uncertainty
Rising prices Extreme
weather events3
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
67
22
11
Neutral
Overall
Positive
Negative
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories
“very positive” and “positive” as well as “very negative” and ”negative”; Figures may not sum to 100%, because of rounding.
2. Calculated by subtracting all "negative/very negative" answers from all "positive/very positive" answers.
Confidence in own country’s current state of the economy1
% of respondents who selected this top source of concern
Net
confidence2 −63 −28
−33
−57 −38
−56

10.
McKinsey & Company 10
Supply-related risks are the most common concerns for consumers
with a negative outlook on the economy
1. Q: You mentioned that you are feeling negatively about [COUNTRY]’s economy in light of the Ukraine invasion. Which of the following topics are you most
uncertain about? Please select up to 3. Figures may not sum to 100%, because of rounding. Bars only show reasons with agreement >20%.
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
47
42
39
31
27
26
24
16
12
9
3
0
Risk of nuclear disaster
Unemployment rates/job security
Energy shortages
Impact of influx of refugees
Interruption of gasoline supply
Food shortages
Supply chain shortages
Risk of further escalation of the war
Rising interest rates
Uncertainty on the stock market
Restrictions on international travel
Other
41
50
53
33
19
22
14
23
14
8
2
1
45
44
36
29
22
33
20
17
12
10
3
1
53
40
43
30
19
31
33
12
11
7
3
0
49
32
41
29
37
20
23
15
13
11
3
0
46
44
24
34
39
24
28
11
12
10
2
0
Top 3 reasons for negative view on economy1
% of respondents who perceived the current status of economy and/or the economy's outlook as negative
Germany UK Italy
France Spain
Europe 5

11.
McKinsey & Company 11
38 41 41 39 42 40
31
17
24
42
46
46 45 48
47 47
52
50
52
44
17 13 14 13 11 13 17
33
24
14
Mar 2020 Oct 2021
Apr 2020 May 2020 June 2020 Nov 2020
Sept 2020 Feb 2021 Mar 2022 Apr 20223
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12-4/18/2022, n = 1,016; 22/03-29/03/2020, n = 1002 , 10/15–10/22/2021, n = 1,023; 2/23–2/27/2021, n = 1,005;
11/9–11/16/2020, n = 1,014; 9/24–9/27/2020, n = 1,054; 6/18–6/21/2020, n = 1,007; 5/21–5/24/2020, n = 1,010; 4/30–5/3/2020, n = 1,004; 4/16–4/19/2020, n = 1,006; 4/2–
4/5/2020, n = 1,006; 3/26–3/29/2020, n = 1,003; 3/20–3/22/2020, n = 1,002, sampled to match Spain general population 18+ years
In Spain, pessimism regarding economy recovery has significantly
increased since October 2021, rising from 17 percent to 42 percent
Optimistic: The
economy will rebound
within 2–3 months and
grow just as strong as or
stronger than before
COVID-19
Neutral: 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
20202 2021 2022
Confidence in own country’s economic recovery after crisis1
% of respondents
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.”; Top, middle, and bottom 2 boxes of scale aggregated to "Optimistic," “Neutral," and "Pessimistic.” Figures may not sum to 100%, because of rounding.
2. Average of biweekly pulse surveys shown for Mar–May 2020.
3. Question in Apr 2022 was not framed for coronavirus: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022?

12.
McKinsey & Company 12
33 35 35 38 42
52 51 49 50 44
14 14 16 12 14
Pessimism about economic recovery is high across countries and
more than doubled since October 2021
18
−17
25
−23
24
−19
19
−23
13
−19
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
1. Q: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022? Rated from 1 “very optimistic” to 6 “very pessimistic.” Top, middle, and bottom 2 boxes of scale
aggregated to "Optimistic," “Neutral," and "Pessimistic.” Figures may not sum to 100%, because of rounding.
Confidence in own country’s economic recovery after current crisis1
% of respondents
Germany
Apr 12–18, 2022
Change in % pessimistic vs Oct 2021 survey,
percentage points
Change in % optimistic vs Oct 2021 survey,
percentage points
Optimistic: The economy will rebound
within 2–3 months and grow just as strong
as or stronger than before the current crisis
Neutral: The economy will be impacted for
6–12 months or longer and will stagnate or
show slow growth thereafter
Pessimistic: The current crisis will have
lasting impact on the economy and show
regression or fall into lengthy recession
Italy
Apr 12–18
UK
Apr 12–18
France
Apr 12–18
Spain
Apr 12–18, 2022

13.
McKinsey & Company 13
Higher-income and younger individuals have more optimistic
expectations regarding an economic recovery
42
44
14
Pessimistic
Overall
Optimistic
Neutral
43 37 49
46 47 33
15 18
Middle
(25K–50K)
Low (<25K)
11
High (>50K)
25 36 47 48
57 44
41 43
17 20 12
Gen Z
9
Millennials Gen X Baby boomers3
By income2
By generation
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
1. Q: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022? Rated from 1 “very optimistic” to
6 “very pessimistic.” Top, middle, and bottom two boxes of scale aggregated to "Optimistic," “Neutral," and "Pessimistic.” Figures may not sum to 100%, because of rounding.
2. Income brackets shown in € apply for France, Germany, Italy, Spain; for UK; same brackets were used with £.
3. Baby boomers includes silent generation.
Confidence in own country’s expected economic recovery after current crisis1
% of respondents

14.
McKinsey & Company 14
Three emerging consumer themes in April 2022
New sources of concern and
tumbling confidence in overall
economy
Sharply rising prices on essentials
with noticeable consequences on
spend
Noticeable activity, demand, and
channel and brand shifts in search
for value for money
1 2 3
How do consumers feel? What do consumer observe? How are consumers reacting?
The top source of concern for Spanish consumers
is rising prices, cited by 47%, followed by the
invasion of Ukraine (21%)
42% of Spaniards are pessimistic about
economic recovery, in contrast to 17% in October
2021
The main reasons for the negative view are
gasoline shortages (cited by 46%), supply chain
shortages (44%), and the unemployment rate
(37%)
94% of Spanish consumers have perceived a
price change, almost always an increase
Perceptions of price increases are particularly
high in groceries (cited by 95%), pet food (80%),
and personal care (77%)
On top of that, 62% of Spanish consumers predict
that prices will keep rising
Half of consumers say that in the last 6 weeks,
they tried a private-label brand, 30% a new brand,
and 30% a new retailer, with 34% shopping more at
discounters
A majority of grocery consumers have traded
down or switched to private labels, particularly in
household products, snacks, and dairy; value and
price are the main reasons to try a new brand
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years

15.
McKinsey & Company 15
Across the five countries surveyed, the vast majority of respondents
observed price changes
1. Q: In the last 4–6 weeks, have you seen a general change in the prices of any goods you commonly buy?
Inflation, year-over-year,
Mar 2022, %
7.6 5.1 7.0 6.8 9.8
7
93
11
89
12
88
10
90
6
94
Source: OECD (inflation data); McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK) sampled
to match European general population 18+ years
9
91
Yes
No
Germany UK Italy
France Spain
Price changes perceived in last 4–6 weeks1
% of respondents
Europe 5

16.
McKinsey & Company 16
Most Spanish consumers indicate they perceived a price change;
perceived increases are highest in groceries and personal care
1. Q: In the last 4–6 weeks, have you seen a general increase in the prices of any goods you commonly buy?
2. Q: In the last 4–6 weeks, how have you observed prices changing across the following categories? Rated from 1 "Prices decreased significantly" to 5 "Prices increased significantly.”
3. Calculated by subtracting all "decreased" answers from all "increased/significantly increased" answers.
2
14
12
17
18
24
24
28
30
25
30
29
29
27
40
37
25
46
43
43
47
42
34
36
35
38
37
35
31
31
32
20
70
34
37
37
30
23
26
22
22
19
19
19
20
18
17
16
5
8
3
4
11
16
13
12
16
12
16
19
21
11
24
1
Pet food and supplies
Kitchen and dining products
1
1
Groceries/food for home 3
1
Household supplies
Skin care and makeup
1
1
1
Personal-care products
1
1
Consumer electronics
Apparel
Home improvement, gardening supplies
Footwear
1
Vitamins, supplements, and OTC medicine
2
Sports and outdoors equipment, supplies
1
2
1
Home decoration and furniture
Accessories
1
Fitness and wellness services
2
Jewelry
Increased
Decreased Stayed the same Increased significantly Not sure
Price changes perceived in last 4–6 weeks
General price change perceived1
% of respondents
Price change perceived by category2
% of respondents who shopped category
6
94
No
Yes
Net change3
94
80
79
79
76
64
59
58
57
56
55
52
49
47
47
34
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years

17.
McKinsey & Company 17
About three-fourths of consumers, especially older ones, are
concerned about rising prices; 62 percent expect further increases
77
62
50
39
15
I am concerned that the prices of
everyday purchases have been increasing
I have had to scale back my lifestyle
due to an increase in prices
I believe prices will continue to rise
throughout the next 12 months
I am planning to buy fewer products/services
in the future if prices continue to rise
I intend to use more “buy now, pay later”
services in the coming months
68 74 78 82
53 63 62 65
49 51 50 50
39 43 40 35
16 21 15
Statements Millennials Gen X
Gen Z
Baby
boomers2
Generational cut
Agreement with price-related statements
% of respondents rating top-2-boxes1
Between −3 and +3
< −3 > +3
Difference from all consumers,2
percentage points
1. Q: Please read the following statements and indicate your level of agreement with each: Rated from 1 "Strongly disagree" to 6 "Strongly agree.”
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
All consumers
10
Source: OECD, McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years

18.
McKinsey & Company 18
As spend on essential products rises, consumers save less and
spend less on nonfood discretionary items—and expect further cuts
1. Q: How have your household finances been affected over the past 4–6 weeks? Rated from 1 "Reduced a lot" to 5 "Increased a lot.” “Last 4–6 weeks” refers to the change in behavior
vs before the invasion of Ukraine.
2. Q: How do you expect your spend on the following categories to change in the next 4–6 weeks? Rated from 1 "Will spend significantly less" to 5 "Will spend significantly more.” "Next
4–6 weeks" refers to the plan consumers make today, so this change is incremental to past change.
3. Calculated by subtracting all "lower/much lower" answers from all "higher/much higher" answer in each column/time frame.
11
19 23 18
37
52
71
24 22 32
38
40
18
57 55 50
25
8
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Net change3
7 −11
32
38 32 −44 2 −19
25
19 15 −30
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
Higher Lower
About the same
14
23 27
17
39 43
70
35 31
42
40
44
16
42 42 42
21
13
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Change and intended change of spend in general categories
% of respondents
Change in spend in the last 4–6 weeks1 Intended change in spend in the next 4–6 weeks2

19.
McKinsey & Company 19
Majorities of consumers report spend increases and expect further
increases in energy, transport and gasoline, and food
1. Q: How have your household finances been affected over the past 4–6 weeks? Rated from 1 "Reduced a lot" to 5 "Increased a lot.“ For visualization, we merged “increased a lot” and “increased,” as well as “reduced a lot” and “reduced.”
"Last 4–6 weeks" refers to the change in behavior vs before the invasion of Ukraine.
2. Q: How do you expect your spend on the following categories to change in the next 4–6 weeks? Rated from 1 "Will spend significantly less" to 5 "Will spend significantly more.“ For visualization, we merged “significantly more” and “more,” as
well as “significantly less” and “less.” "Next 4–6 weeks" refers to the plan consumers make today, so this change is incremental to past change.
3. Calculated by adding the blue highlighted cells, ie, increased past spend or expect to increase future spend, excluding consumers that have decreased or expect to decrease their spend.
Change of spend in general categories in last 4–6 weeks1 and expected
in next 4–6 weeks,2 % of respondents
Calculation example
Observed/expected price increase,³ % 23
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
Decrease No change Increase
Decrease 4 3 1
No change 4 63 6
Increase 2 7 10
Change of spend in
next 4–6 weeks, %
Change
in spend
in last
4–6
weeks,
%
Germany UK Italy
France Spain
25
66
62
69
34
19
21
55
55
53
25
9
31
76
60
62
26
9
15
62
50
41
23
10
21
53
50
52
25
10
Energy/utilities
Transport and gasoline
Food and essentials
Nonfood discretionary
Put money into savings
Rent/mortgage
Europe 5
23
62
55
55
27
12
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
Observed/expected price
increase,³ %

20.
McKinsey & Company 20
17
−11
−25
−25
−27
−21
−31
−27
−51
−43
−33
−11
−4
−41
−31
−35
−12
−19
Net change,3
next 4–6
weeks
Majority of consumers expect to spend less than usual across most
categories; groceries and gasoline are exceptions
Net change > 1
Net change −15 to 1
Net change < −15
10
18
36
37
42
40
41
43
54
51
39
18
14
27
48
40
40
24
40
14
17
12
14
17
11
6
7
16
13
12
7
11
21
10
Alcohol
Food takeout and delivery
Quick-service restaurant
Groceries
Restaurant
Tobacco products
Footwear
Apparel
Jewelry
Accessories
10
Toys and baby supplies
Household supplies
Personal-care products
Home improvement, garden
Skin care and makeup
Home and furniture
Sports and outdoors
10
Kitchen and dining
11
27
13
38
38
44
30
28
34
19
25
39
30
38
43
45
49
41
16
13
8
9
14
13
11
12
9
53
22
15
30
18
15
16
10
16
Books/magazines/newspapers
Travel by car
Entertainment at home
Gasoline
Vitamins and OTC medicine
Pet food and supplies
Consumer electronics
Vehicles
Out-of-home entertainment
Pet care services
Fitness and wellness
Personal-care services
Short-term home rentals
Hotel/resort stays
Cruises
Adventures and tours
International flights
Domestic flights
−5
−30
−25
−31
−19
−17
−25
35
−24
0
−20
−28
−29
−39
−14
−3
5 −2
−20
−11
−25
−32
−24
−22
−18
−26
17
−13
−24
−4
−18
−21
−14
−30
−25 −21
−48
29
−29
−3
−41
−4
−20
−26
−28
−23
−30
−32
−44
−1
−15
−29
−30
−3
1. Q: In the past 4–6 weeks, how has the amount you have spent on these categories changed? “Spent less on this category”; “spent the same amount”; “spent more on this category.”
2. Q: Over the next 4–6 weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? “Will spend less on this category”; “will spend about the same”; “will spend more on this category.”
3. Net change is calculated by subtracting the % of respondents stating they decreased spend or expect to decrease spend from the % of respondents stating they increased spend or expect to increase spend in the respective category.
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
Net change,3
next 4–6
weeks
Net change,3
last 4–6
weeks
Change, last 4–
6 weeks
Net change > +15
Net change −15 to +15
Net change < −15
xx xx xx
Change1 or expected change2 of spend
% of respondents who shopped category
Net change,3
last 4–6
weeks
Change, last
4–6 weeks

21.
McKinsey & Company 21
Most consumers have become more conscious about their home
energy use and have modified transport habits to save gasoline
1. Q: In which other areas of your life, if any, have you changed your shopping behavior in the last 4–6 weeks?
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
3. Baby boomers includes silent generation.
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
56
34
21
17
17
15
14
8
8
7
5
5
4
16
I have started/increased my purchase of products from companies that have taken a stance on the invasion of Ukraine
I have stocked up on products (eg, grocery or household items) that I use often in the event that there are supply chain shortages
I have changed my mode of transport to use less gasoline/to save money
I have sped up my plan to purchase a new home
I have become more conscious about my home energy usage
I have delayed/canceled a pending trip/vacation
I have purchased supplies to donate to the Ukraine humanitarian effort and/or have donated money or time to volunteer
I have reduced/stopped purchasing products from Russian companies
I have delayed/canceled a planned purchase of a car/other vehicle
I have reduced/stopped purchasing products from companies that have not taken a stance on the invasion of Ukraine
I have delayed/canceled a planned purchase of a new home
I have sold/plan to sell my car or other vehicle
I have offered to shelter/sponsor Ukrainian refugees
None of these
Change in purchase behavior in last 4–6 weeks1
% of respondents
Generational cut
Millennials Gen X
Gen Z
Baby
boomers3
48 57 51 64
44 35 30 35
18 21 22 21
17 20 18 14
12 13 20 20
14 18 15 13
10 15 16 13
8 8 9 7
8 7 7 8
11 11 8 2
6 7 4 3
6 6 7 1
6 5 5 2
13 12 15 20
All consumers

22.
McKinsey & Company 22
Three emerging consumer themes in April 2022
New sources of concern and
tumbling confidence in overall
economy
Sharply rising prices on essentials
with noticeable consequences on
spend
Noticeable activity, demand, and
channel and brand shifts in search
for value for money
1 2 3
How do consumers feel? What do consumer observe? How are consumers reacting?
The top source of concern for Spanish consumers
is rising prices, cited by 47%, followed by the
invasion of Ukraine (21%)
42% of Spaniards are pessimistic about
economic recovery, in contrast to 17% in October
2021
The main reasons for the negative view are
gasoline shortages (cited by 46%), supply chain
shortages (44%), and the unemployment rate
(37%)
94% of Spanish consumers have perceived a
price change, almost always an increase
Perceptions of price increases are particularly
high in groceries (cited by 95%), pet food (80%),
and personal care (77%)
On top of that, 62% of Spanish consumers predict
that prices will keep rising
Half of consumers say that in the last 6 weeks,
they tried a private-label brand, 30% a new brand,
and 30% a new retailer, with 34% shopping more at
discounters
A majority of grocery consumers have traded
down or switched to private labels, particularly in
household products, snacks, and dairy; value and
price are the main reasons to try a new brand
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years

23.
McKinsey & Company 23
Half of consumers say they tried a private label in the last six
weeks; nearly three in ten switched to another brand or retailer
1. Q: In the last 4–6 weeks, which of the following have you done when purchasing groceries and other essentials (eg, toiletries, cleaning products)?
2. Q: How likely are you to change your shopping behavior in the next 4–6 weeks when purchasing groceries and other essentials (eg, toiletries, cleaning products)? Rated from 1 "Not
likely at all" to 6 "Extremely likely"; percentages represent “Likely” plus “Extremely likely.”
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.
95% of consumers noticed a price increase when shopping for groceries and essentials
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
v 75
50
30
26
17
15
13
10
9
Switch from online to a brick-and-mortar store
Switch to a different brand than normal
Try a private-label brand
Shop from a different retailer/store than normal
Switch from a brick-and-mortar store to online
Shop from a different website than normal
Try a new digital shopping method (eg, ordered groceries via app)
Use a new shopping method (eg, pickup or food delivery subscriptions)
Did activities in last 4–6 weeks1
% of respondents
Plan to do activities in next 4–6 weeks2
% of respondents who did not do activity in the last
4–6 weeks
Activities when shopping for groceries/essentials
41
26
14
12
7
8
9
16
8
Activities
Total: Any new shopping behavior3

24.
McKinsey & Company 24
75
50
30
26
17
15
13
10
9
Shop from a different retailer/store than normal
Total: Any new shopping behavior3
Try a private-label brand
Switch from online to a brick-and-mortar store
Try a new digital shipping method
(eg, ordered groceries via app)
Shop from a different website than normal
Switch to a different brand than normal
Switched from brick-and-mortar to online
Use a new shopping method
(eg, pickup or food delivery subscriptions)
Three in four consumers shopping for groceries and essentials have
tried a new shopping behavior in the last six weeks
Generational cut
All consumers
Between −3 and +3
< −3 > +3
1. Q: In the last 4–6 weeks, which of the following have you done when purchasing groceries and other essentials (eg, toiletries, cleaning products)?
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.
Activities when shopping for groceries/ essentials in last 4–6 weeks,1
% of respondents
Difference from all consumers,2 percentage points
Gen Z
84
53
43
31
26
22
29
14
14
Millennials
74
50
38
33
28
21
19
13
14
Gen X
61
43
28
23
13
12
8
9
7
Baby boomers
87
62
20
19
7
10
5
7
3
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years

25.
McKinsey & Company 25
Many consumers have switched to shopping at discounters, turning
away from specialty grocery stores and hypermarkets
Retailer formats changed to in past 4–6 weeks1
% of respondents who shopped from a different retailer/store than normal
Retail format Shopping in last 4–6 weeks, % of consumers
5
17
42
16
13
18
27
28
33
50
63
46
26
43
35
14
11
4
7
Specialty grocery store
Hypermarket
1
Discounter
Supermarket
Convenience store
Did not shop there Shopped more
Shopped less Shopped same amount
1. Q: You mentioned that in the last 4–6 weeks you started shopping from a different retailer or store than you normally would when purchasing groceries and other essentials. How has your shopping at the following types of
retailers/stores changed?
2. Calculated by subtracting all "shopped less" answers from all "shopped more" answers.
26% of consumers changed their
retailer/store in the last 4–6 weeks
Net change2
22
−4
−26
−15
−25
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years

26.
McKinsey & Company 26
Top reasons to change retailers are price and value for money for
millennials, proximity and value for baby boomers
1. Q: You mentioned you shopped from a different retailer/store in the past 4–6 weeks when purchasing groceries and other essentials (eg, toiletries, cleaning
products). What were the main reasons you decided to try this new retailer/store? Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup - here generational cut.
3. Baby boomers includes silent generation.
Between −15 and +15
< −15 > +15
Difference from all consumers,2
percentage points
26% of consumers changed their
retailer/store in the last 4–6 weeks
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
All consumers
Top reasons for choice of new retailer/store for groceries/essentials1
% of respondents who shopped from a different retailer/store than normal in last 4–6 weeks
41
39
27
24
22
15
15
15
14
8
8
7
7
7
5
5
4
2
More easily accessible from my home
Better value for money
Supporting local businesses
Better prices/promotions
Wanted to treat myself
Better quality
Products are in stock
Less crowded/has shorter lines
Family/friend recommendations
Cleaner/has better hygiene measures
I wanted to save on the cost of gasoline
Wanted variety/a change from normal
Offers natural/organic offerings
More sustainable/environmentally friendly
The company treats its employees well
I can get all the items I need from 1 place
Shares my values
Their response to the invasion of Ukraine
45
46
26
24
20
12
22
17
14
8
9
12
3
5
5
1
8
3
Millennials
34
42
25
26
19
14
12
19
14
10
4
4
7
5
3
1
4
3
Gen X
44
18
15
26
33
21
13
10
21
8
13
8
13
10
5
3
13
10
Gen Z
42
38
42
22
20
20
9
7
9
9
11
4
9
2
2
2
5
7
Baby
boomers3

27.
McKinsey & Company 27
A majority of consumers have traded down or switched to private
labels, particularly in household products, snacks, and dairy
28
30
38
38
38
42
43
46
48
49
53
5
6
5
6
7
5
5
6
7
7
6
67
65
57
56
55
52
52
48
45
44
41
Dairy and eggs
Household products
Hot drinks
Bread and bakery
Snacks and confectionary
Frozen foods
Healthcare, beauty, baby
Non-alcoholic beverages
Alcohol
Fresh meat, fish, poultry
Fresh fruit and vegetables
No change Switched to higher-priced brand Switched to lower-priced or private-label brand
Brand-switching behavior1
% of respondents who switched to a different brand for groceries or essentials in last 4–6 weeks Net trade- down2
35
30
13
12
10
5
3
−3
−11
−12
−17
62% of consumers changed a groceries/essentials
brand in the last 4–6 weeks
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
1. Q: You mentioned that in the last 4–6 weeks you tried a different brand than you normally would when purchasing groceries and other essentials. Which of the following best describes how/where you switched brands?
2. Calculated by subtracting the answers for "switched to higher-priced brand" and "no change“ from “switched to lower-priced or private-label brand.”

28.
McKinsey & Company 28
Value for money and price drive more the decision to try new
grocery brands for older generations
1. Q: You mentioned you tried a new/different brand than what you normally buy in the last 4–6 weeks when purchasing groceries and other essentials (eg,
toiletries, cleaning products).What were the main reasons that drove this decision? Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here top source of concern.
3. Baby boomers includes silent generation.
Between −2 and +2
< −2 > +2
Difference from all consumers,2 percentage points
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
51
50
14
14
13
12
11
11
10
9
8
8
6
6
4
4
4
3
Wanted to try a new brand I found
Wanted to try new type of product
Better quality
Better value for money
Better price
Natural/organic
Available where I’m shopping
Supporting local businesses
Large package sizes
Products are in stock
More sustainable/environmentally friendly
Wanted to treat myself
Better shipping, delivery cost
Wanted variety/a change from normal
Shares my values
Cleaner, safer
Their response to invasion of Ukraine
The company treats its employees well
All consumers
45
38
21
14
13
16
6
9
15
7
9
12
9
4
5
3
9
6
Millennials
50
59
9
14
10
10
10
10
7
12
9
6
7
5
4
4
1
4
Gen X
49
46
21
15
11
15
3
16
11
8
8
7
7
10
2
3
5
3
Gen Z
59
54
11
14
18
10
23
12
9
9
4
7
2
7
4
0
2
1
Baby
boomers3
Top reasons for choice of new brand for groceries/essentials1
% of respondents who bought a different brand than normal in last 4–6 weeks
62% of consumers changed a groceries/essentials brand in
the last 4–6 weeks

29.
McKinsey & Company 29
Consumers have noticed food and skin-care price rises most of all;
in most cases this leads to down-trading to a lower cost brand
80
80
65
60
59
57
57
56
54
51
50
48
36
Skin care and makeup
Pet food and supplies
Home decoration and furniture
Kitchen and dining products
Footwear
Consumer electronics
Apparel
Vitamins, supplements, and OTC medicine
Sports and outdoors equipment, supplies
Home improvement, gardening supplies
Accessories
Fitness and wellness services
Jewelry
Perception of price increase and
action taken by consumers by
product category
Perception of price increase1
% of respondents top 2 boxes
1. Q: In the last 4–6 weeks, how have you observed prices changing across the following categories? Rated from 1 "Prices decreased significantly" to 5 "Prices increased significantly.”
2. Q: In the last 4–6 weeks, have you done any of the following when purchasing [product]? Includes respondents who answered they switched to a different or lower-cost brand, delayed their purchase, switched to a different store or website,
or purchased a smaller quantity.
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
31
47
29
48
31
37
40
38
46
46
46
42
39
19
19
19
12
4
12
13
11
14
12
14
12
11
9
9
9
8
12
14
13
3
14
11
10
12
5
2
4
6
4
5
1
3
3
2
4
2
3
8
40
24
31
17
24
19
21
31
20
24
15
9
17
9
8
9
9
12
10
12
7
7
10
12
12
13
8
9
8
9
8
5
4
4
10
5
2
2
3
24
15
26
20
26
23
18
28
20
18
24
20
27
Action taken when price increase was perceived2
% of respondents reacting to perceived price increase
No action
Delayed a purchase
Switched to a different brand
Switched to a higher-cost brand
Switched to a lower-cost brand
Switched to a different store/website
Purchased a larger size/quantity
Purchased a smaller size/quantity

30.
McKinsey & Company 30
Reasons for choosing a product/brand in the past 4–6 weeks1
% of respondents rating as top 2 or bottom 2 in importance
1. Q: In the last 4–6 weeks, when choosing a product or brand to purchase, how important to your purchase decision were the following factors that may be attributed to the product or brand? Rated from 1 "Not
important at all" to 6 "Extremely important.”
2. Calculated by subtracting the unimportant (rating of 1 or 2) value from the important (rating of 5 or 6) value.
45
44
36
48
35
69
27
61
30
36
55
40
63
“Rational”
Beliefs
Sustainability
‘Rational’ reasons for choosing a brand dominate,
especially lower price, trusted brand, and availability
10
11
13
13
16
3
3
7
19
19
16
7
4
No artificial ingredients/natural/GMO free
Recyclable products, packaging, or initiatives
Sustainably sourced materials
Small or neutral carbon footprint
Fair trade practices
Lower price
Available in the store closest to me
Locally sourced/locally owned
Brand has made public statements in support of Ukraine
Brand has stopped doing business in Russia
Brand is actively supporting the humanitarian effort in Ukraine
Brand that treats employees well
Brand that I know and trust
Unimportant
(bottom 2 boxes)
Important
(top 2 boxes)
Source: McKinsey & Company Spain Consumer Pulse Survey, 4/12–4/18/2022, n = 1,016, sampled to match Spain general population 18+ years
Net
importance2
35
33
22
22
12
66
57
40
17
23
48
60
11

31.
McKinsey & Company 31
Reason for trying a new brand in the past 4–6 weeks1
Net importance rating2
1. Q: In the last 4–6 weeks, when choosing a product or brand to purchase, how important to your purchase decision were the following factors that may be attributed to the product or brand? Rated from 1 "Not
important at all" to 6 "Extremely important.”
2. Calculated by subtracting the unimportant (rating of 1 or 2) value from the important (rating of 5 or 6) value.
“Rational”
Beliefs
Sustain-
ability
Spain’s consumers rank high in Europe 5 for being motivated by
sustainability and are most apt to seek a clear position on Ukraine
Europe 5
27
21
11
9
1
54
45
24
43
32
5
1
-8
Available in the store closest to me
Recyclable products, packaging, or initiatives
Locally sourced/locally owned
No artificial ingredients/natural/GMO free
Small or neutral carbon footprint
Sustainably sourced materials
Fair trade practices
Lower price
Brand has made public statements in support of Ukraine
Brand that I know and trust
Brand that treats employees well
Brand actively supports humanitarian effort in Ukraine
Brand has stopped doing business in Russia
France Spain
UK Italy
Germany
34
22
14
12
9
54
49
21
40
29
-5
-13
0
29
16
7
2
-7
40
36
27
33
26
-13
-16
-22
6
14
2
-2
-6
63
47
1
40
27
9
11
-10
32
21
8
12
-4
44
36
31
40
32
5
-2
-3
35
33
22
22
12
66
57
40
60
48
23
17
11
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years