McKinsey European consumer sentiment survey: How current events are shaping UK consumer behavior

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 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.

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 concern in the United Kingdom is rising
prices, cited by 60% of respondents, followed by
the invasion of Ukraine (15%) and COVID-19
(7%).
Only 2% identify Brexit as their top concern, but
15% say Brexit is a top three concern
Confidence in the current state of the economy
is very negative, with 61% of UK consumers
Pessimism about a recovery has risen to 35%,
the highest level since we first asked in 2020
Nine out of ten consumers noticed price changes
in the last few weeks, particularly in groceries
and household essentials
Costs of energy/utilities and transport are eating
away at consumer savings and nonfood spend
In response to price increases, consumers are
cutting spend on all but food and gasoline and
reducing energy use; 61% say they also are much
more conscious of their home energy use
Two-thirds of consumers say they responded to
price increases by adapted their shopping
behavior
Consumers significantly trade down in stores
and products; they switch from grocery/
convenience stores to discounters (28%) and from
branded to low-priced and private-label products
(34%)
Source: McKinsey & Company UK Consumer Pulse Survey, 4/12–4/18/2022, n = 1,013, sampled to match UK general population 18+ years

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
4
3
2 4
3
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Unemployment/job security
Extreme weather events
Other
Top source of concern1
% of respondents

The dominant concern of UK consumers is price increases,
followed by the invasion of Ukraine and COVID-19
86
57
41
22
22
22
18
16
15
1
COVID-19 pandemic
Rising prices
Invasion of Ukraine
Extreme weather events/climate change
Cost/accessibility of healthcare
Brexit
Immigration
Political uncertainty
Other
60
15
7
3
3
4
3
2
2
1
Among top 3 sources of concern1 Top source of concern2
Top sources of concern today
% of respondents
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?

Prices are particularly worrying for millennials and invasion of
Ukraine for baby boomers
11
3
4
7
15
60
Overall
11 11 11
5 4 2
4 3 4
5
7 7
13 18 13
62 57 62
Middle
income
Low income High
income
8 10 7
16
8
4
2
3
5
5
4
2
8
3
8
7
11
9 14
23
59
69 65
50
Gen Z Gen X Baby
boomers
Millennials
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Extreme weather events
Other2
Top source of concern1
% of respondents
Split by generation
Split by income
1. Q: Which of the following is your top concern today?
2. Other includes “immigration,” “cost and accessibility of healthcare,” “Brexit,” and “Political uncertainty.”

For top three concerns, rising prices disproportionately concern
low-income consumers and baby boomers; baby boomers also have
the highest concerns about the invasion of Ukraine
86
57
41
22
22
22
18
16
15
1
Brexit
Rising prices
Invasion of Ukraine
Immigration
COVID-19 pandemic
Extreme weather events/climate change
Cost/accessibility of healthcare
Political uncertainty
Other
90
52
42
22
25
24
20
12
13
1
85
60
42
19
19
22
18
19
15
2
82
59
39
28
22
18
13
19
20
0
82
48
28
29
33
37
8
16
20
0
86
51
37
26
25
31
12
19
14
0
86
58
47
16
18
25
18
16
14
2
88
63
44
22
19
7
25
15
16
1
Top 3 sources of concern1
% of respondents
Middle
income
High
income
Low
income Millennials Gen X
Gen Z
Baby
boomer
Split by generation
Split by income
1. Q: What are the greatest source(s) of concern for you right now? Please select the top 3.

Almost two out of three consumers are negative about their own
country’s current state of the economy
55 58 61 63 67
32 29 24 26 22
13 13 15 11 11
61
27
13
Neutral
Positive
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

Consumers’ negative perception of the economy is fairly consistent
across income groups and highest among Gen X and millennials
61
24
15
Positive
Overall
Neutral
Negative
Confidence in the United Kingdom’s current state of the economy1
% of respondents
63 57 65
26 26 18
17 16
Middle (£25K–50K)
11
Low (<£25K) High (>£50K)
49 62 71 58
31
24 17
28
20 15 14
Gen Z Millennials Gen X
12
Baby boomers2
By income
By generation
1. Q: How are you feeling about the UK'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. Baby boomers includes silent generation.

Consumers whose top concern is rising prices are more likely than
others to have a negative view of the UK economy
69
54 52
20
28 28
11
18 20
Rising prices COVID-19 pandemic
Invasion of Ukraine
Confidence in the United Kingdom’s current state of the economy1
% of respondents
61
24
15
Negative
Overall
Positive
Neutral
Net
confidence2 −32
−36
−58
−46
1. Q: How are you feeling about UK'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.

For consumers with a negative outlook on the current economy, the
greatest uncertainties are supply related
UK France Italy
Germany Spain
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
47
42
39
31
27
26
24
16
12
9
3
0
Rising interest rates
Interruption of petrol supply
Supply chain shortages
Energy shortages
Risk of further escalation of the war
Unemployment rates/job security
Food shortages
Impact of influx of refugees
Risk of nuclear disaster
Uncertainty on the stock market
Restrictions on international travel
Other
53
40
43
30
19
31
33
12
11
7
3
0
41
50
53
33
19
22
14
23
14
8
2
1
45
44
36
29
22
33
20
17
12
10
3
1
49
32
41
29
37
20
23
15
13
11
3
0
46
44
24
34
39
24
28
11
12
10
2
0
Europe 5
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.

UK consumers’ pessimism about the economy is at its highest since
March 2020
30 30 32 30 31 31
24
17
25
35
52 55 53 55 54 53
55
49
51
49
18 15 15 15 14 16 21
34
24
16
Feb 2021
Mar 2020 Apr 2020 May 2020 June 2020 Sept 2020 Nov 2020 Oct 2021 Mar 2022 Apr 20223
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
regression
20202 2021 2022
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?
Confidence in own country’s economic recovery after crisis1
% of respondents
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK); 03/22–03/29/2022, n = 5,028 (France, Germany, Italy, Spain, UK); 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 European general population 18+ years

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
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

The most categories of consumers pessimistic about a recovery are
those in the low-income group and Gen X
35
49
16
Pessimistic
Neutral
Overall
Optimistic
Confidence in UK’s expected economic recovery after current crisis1
% of respondents
39 33 33
48 50 48
13 17 19
Low (<£25K) Middle (£25K–50K) High (>£50K)
22
35 43 34
53
49 45 51
25 16 13 15
Baby boomers3
Gen Z Gen X
Millennials
By income2
By generation
1. Q: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in February 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. Baby boomers includes silent generation.

economy
spend
for value for money
1 2 3
(7%).
behavior
(34%)

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

Consumers report the highest perceived price increases in
groceries, followed by household supplies and pet food
4
3
3
5
3
3
3
5
19
22
25
24
27
30
22
27
23
36
29
25
28
30
35
49
55
47
50
38
39
36
35
33
36
30
26
32
28
25
21
43
19
21
15
15
14
14
14
12
9
15
15
10
12
12
12
1
5
7
8
21
17
18
25
26
29
13
28
30
30
30
30
2
Footwear
Groceries/food for home 2
2
Personal-care products
Household supplies
2
Pet food and supplies
1
Home improvement and gardening supplies
Jewelry
Skin care and makeup
2
Vitamins, supplements, and OTC medicine
Kitchen and dining products
Home decoration and furniture
2
2
Apparel
Fitness and wellness services
2
Sports and outdoors equipment, supplies
Consumer electronics
Accessories
Decreased Increased
Stayed the same Not sure
Increased significantly
Price changes perceived, last 4–6
weeks
General price change perceived1
% of respondents
Price change perceived by category2
% of respondents who shopped category
12
88
Yes
No
Net change3
90
73
67
63
51
49
48
46
43
42
41
40
39
38
34
29
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.

Consumers’ outlook on future prices is negative, with Gen X and
millennials seeing most impact on lifestyle
71
65
50
43
15
I am planning to buy fewer products/
services in the future if prices continue to rise
I believe prices will continue to rise
throughout the next 12 months
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 intend to use more “buy now, pay
later” services in the coming months
Agreement with price-related statements
% of respondents rating agreement 5 or 6 on 6-point scale
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
75
71 57
56 38
50 30
11 7
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.
Statements
71
62
52
24
Millennials Gen X
Generational cut
All consumers
66
58
23
Gen Z
Baby
boomers2
69
72
48
43

Consumers whose top concern is rising prices are likelier than
others to plan to reduce spend and scale back their lifestyle
71
65
50
43
15
I believe prices will continue to rise
throughout the next 12 months
I am concerned that the prices of everyday
purchases have been increasing
I intend to use more “buy now, pay
later” services in the coming months
I am planning to buy fewer products/
services in the future if prices continue to rise
I have had to scale back my lifestyle
due to an increase in prices
Agreement to price-related statements1
% of respondents rating agreement 5 or 6 on 6-point scale
Between −3 and +3
< −3 > +3
Difference from all consumers2, percentage points
Statements
65
63
57
40
25
COVID-19
pandemic
Top source of concern
All consumers
54
38
28
10
Invasion of
Ukraine
67
76
71
14
Rising prices
56
48
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 top source of concern.

As spend on essential products rises, consumers save less and
spend less on nonfood discretionary items—and expect further cuts
Change of spend and expected change in spend in general categories
% of respondents
6 9 14 14
28
54
66
17
23 21
43
37
28
74
62 65
29
9
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Net change3
22 1
51
65 48 −44 15 −20
38
60 34 −43
Higher About the same Lower
8 11
18 17
42
53
69
18
29 29
37
36
23
71
53 55
21
10
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Change in spend in the last 4–6 weeks1 Expected change in spend in the next 4–6 weeks2
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 subtracting all "lower" answers from all "higher" answer in each column/time frame.

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
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
Observed/expected price
increase,³ %

Consumers expect to spend less than usual across most categories
except groceries and gasoline for car travel
Decreased Stayed the same Increased
13
26
20
40
44
48
29
38
38
15
26
52
24
35
41
41
50
41
20
12
12
11
16
14
11
65
26
13
40
25
17
18
15
17
Vitamins and OTC medicine
Entertainment at home
10
5
Out-of-home entertainment
Books/magazines/newspapers
Pet-care services
Fitness and wellness
Personal-care services
Gasoline
Vehicles
Short-term home rentals
Travel by car
Cruises
Adventures and tours
International flights
Hotel/resort stays
Domestic flights
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 change3 < −15
xx xx xx
Change1 and expected change2 of spend by product categories
% of respondents who shopped category
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 from the % of respondents stating they increased spend in the respective category.
−22
−36
−46
−38
−17
−21
−29
38
−8
−37
−25
−34
−40
−20
−35
−34
−37
−23
−28
50
−39
16
−24
−23
−35
1
−24
29
−17
−33
−28
−39
−35
−42
−41
−48
−25
−6
−9
−32
−41
−44
−26
−41
9
Net change,3
next 4–6
weeks
Net change,3
last 4–6
weeks
−43
37
−13
4
−37
−7
−28
−27
−32
−28
−38
−37
−52
−5
−31
−35
−22
−33
Change, last 4–6
weeks
1
−15
12
−6
-9
−13
−10
−13
6
13
26
44
39
44
44
45
46
54
59
30
15
18
41
49
45
39
42
50
19
16
12
12
16
8
9
7
17
19
12
9
12
17
9
Kitchen and dining
Sports and outdoors
Accessories
Groceries
Restaurant
11
Quick service restaurant
Tobacco products
Alcohol
Food take out and delivery
Footwear
Skincare and makeup
Apparel
Jewelry
Toys and baby
Household supplies
Personal-care products
Home and furniture
10
Home improvement, garden

Two-thirds of consumers became more conscious about energy
usage; Gen Z and millennials limit travel, and Gen X stock up
61
22
18
18
14
12
10
6
6
5
4
4
3
19
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 stocked up on products (eg, grocery or household items)
that I use often in the event that there are supply chain shortages
I have become more conscious about my home energy usage
I have delayed/canceled a planned purchase of a car/other vehicle
I have changed my mode of transport to use less gasoline/to save money
I have reduced/stopped purchasing products from Russian
companies
I have reduced/stopped purchasing products from companies that
have not taken a stance on the invasion of Ukraine
I have started/increased my purchase of products from companies
that have 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 sped up my plan to purchase a new home
I have offered to shelter/sponsor Ukrainian refugees
None of these
Change in purchase behavior in last 4–6 weeks1
% of respondents
Generational cut
51
24
28
25
12
12
11
12
12
7
8
13
10
11
Millennials
61
18
24
25
13
12
12
7
7
10
6
5
4
14
Gen X
65
27
14
13
13
9
9
4
5
5
3
2
3
18
Gen Z Baby boomers2
60
20
13
13
16
13
8
5
3
1
2
0
1
26
All consumers
1. Q: In which other areas of your life, if any, have you changed your shopping behavior in the last 4–6 weeks?
Between −3 and +3
< −3 > +3
Difference from all consumers2, percentage points

economy
spend
for value for money
1 2 3
(7%).
behavior
(34%)

Faced with rising prices, many consumers switch to different brands
and private labels, as well as change their preferred retailers
v 64
34
32
28
15
10
10
8
7
Switch to a different brand than normal
New shopping method
Use a new shopping method
(eg, pickup and food delivery subscription)
Try a private label/store brand
Any new shopping behavior3
Shop from a different retailer/store than normal
Shop from a different website than normal
Try a new digital shopping method
(eg, order groceries via app)
Switch from online to a brick-and-mortar store
Activities done 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
38
21
14
10
9
6
7
9
14
Activities
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". "Extremely likely" and
"Likely" answers counted for planning this activity
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.

Gen Z and millennials are more likely than other generations to
switch to new brands and retailers
64
34
32
28
15
10
10
8
7
Switch to a different brand than normal
Switched from brick-and-mortar store to online
Total: Any new shopping behavior3
Try a private label/store brand
Shop from a different retailer/store than normal
Shop from a different website than normal
Use a new shopping method
(eg, pickup and food delivery subscription)
Try a new digital shopping method
(eg, order groceries via app)
Switch from online to a brick-and-mortar store
Generational cut
All consumers
Activities when shopping for groceries/essentials in the last 4–6 weeks1
% of respondents
Gen Z
82
40
38
43
33
25
24
11
16
Millennials
63
35
38
39
23
14
15
12
11
Gen X
43
25
37
28
12
8
7
5
7
Baby boomers
82
40
21
14
6
2
2
5
2
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)?
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.
Between −3 and +3
< −3 > +3

Consumers have been switching away from grocery and
convenience stores and toward discounters
Use of retail formats in past 4–6 weeks1
% of respondents who shopped from a different retailer/store than normal in last 4–6 weeks
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.
Retail format
20
5
43
20
21
14
27
27
37
40
30
51
24
30
31
36
18
7
13
8
Convenience store
Discounter
Specialty grocery store
Hypermarket
Supermarket
Did not shop there Shopped less Shopped same amount Shopped more Net change2
22
−9
−20
−25
−32
33% of consumers changed their retailer/store in the last 4–6 weeks

Price and value are the strongest drivers of switching retailers, with
millennials also concerned about stock and accessibility
56
55
17
15
14
14
12
12
9
9
8
8
7
6
5
5
4
4
Less crowded/has shorter lines
More easily accessible from my home
Has more sustainable/environmentally friendly options
Better prices/promotions
Products are in stock
Better quality
Better value
Family/friend recommendations
Save cost of gasoline
Wanted variety/a change from my normal routine
I can get all the items I need from 1 place
Wanted to treat myself
Supporting local businesses
Shares my values
The company treats its employees well
Cleaner/has better hygiene measures
Offers natural/organic offerings
I support their response to the invasion of Ukraine
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
65
44 50
68
44 44
17
16 18
16 19 11
16 22 8
10 13 17
26 14 6
14 9 13
10 11 7
12 8 9
14 8 5
8 8 8
10 8 6
16 4 2
2 6 4
4
2 4
8 5 6
8 7 2
Gen Z Millennials
Gen X and baby
boomers3
Between −2 and +2
< −2 > +2
Difference from all
consumers,2 percentage points
1. Q: You mentioned you shopped from a different retailer/store in the past 4–6 weeks when purchasing groceries and other essentials (e.g., toiletries, cleaning products, etc.).
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 sub-group—here generational cut.
3. Aggregated due to low sample size of subgroups. Baby boomers includes silent generation.
33% of consumers changed their retailer/store in the last 4–6 weeks

A large proportion of consumers shopping for groceries and other
essentials are trading down
22
25
27
35
34
34
40
41
42
42
52
4
5
3
3
5
6
4
3
4
4
4
74
70
70
62
61
60
56
56
54
54
44
Fresh meat, fish, poultry
Fresh fruit and vegetables
Bread and bakery
Household products
Snacks and confectionary
Frozen foods
Healthcare, beauty, and baby
Non-alcoholic beverages
Dairy and eggs
Hot drinks
Alcohol
No change Switched to higher-priced brand Switched to private label/lower-priced brand
Brand-switching behavior of consumers1
% of respondents who switched to a different brand for groceries or essentials in last 4–6 weeks
Net trade down2
48
40
40
24
22
19
12
12
8
8
−12
49% of consumers changed a
groceries/essentials brand in
the last 4–6 weeks
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 those for "switched to lower-priced brand/private label.“

The main reasons consumers give for switching brands are to get
better value and lower prices
All consumers
69
50
14
13
9
9
8
8
7
6
6
6
5
4
4
3
3
3
Wanted to try a new brand I found
Wanted to treat myself
Products are in stock
Better value for money
Available where I’m shopping
Better price
Better quality
Supporting local businesses
Large package sizes
More sustainable/better for environment
Better shipping, delivery cost
Wanted to try a type of product that I’ve never tried before
Cleaner, safer
Natural/organic
The company treats its employees well
Wanted variety, change from normal routine
Shares my values
Their response to invasion of Ukraine
48
17
8
4
8
11
6
1
1
6
5
4
4
5
1
4
Gen X
81
1
48
10
13
12
8
8
12
14
8
8
7
8
8
4
7
5
Gen Z and millennials3
54
3
83
55
19
19
9
11
6
4
3
8
3
5
3
-
1
5
1
-
Baby boomers
Top reasons for choice of new retailer/store for
groceries/essentials,1 % of respondents who shopped from a different
retailer/store than normal in last 4–6 weeks
Between −2 and +2
< −2 > +2
Difference for all consumers,2
percentage points
49% of consumers changed a groceries/essentials
brand in the last 4–6 weeks
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.
3. Aggregated due to low sample size of subgroups.

The majority of consumers perceiving price increases change their
behavior—for example, postponing a purchase or switching brands
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,
purchased a smaller quantity.
69
53
53
50
49
46
45
45
42
41
40
37
32
Home decoration and furniture
Vitamins, supplements, and OTC medicine
Home improvement and gardening supplies
Skin care and makeup
Kitchen and dining products
Fitness and wellness services
Apparel
Sports and outdoors equipment, supplies
Footwear
Accessories
Jewelry
Consumer-observed price
increases1
% of respondents rating price
change as 4 or 5 on 5-point scale
Behavior change when price increase is perceived2
% of respondents reacting to perceived price increase
40
38
36
34
40
49
42
49
52
30
38
38
20
6
19
14
13
11
16
20
29
27
28
19
24
23
11
11
11
16
6
8
8
7
10
17
14
19
11
1
4
3
6
4
2
7
4
5
6
7
10
1
22
18
30
29
31
25
24
11
15
28
15
29
21
16
9
13
10
8
8
8
4
9
8
15
18
15
9
24
15
16
23
14
17
11
12
20
8
14
36
17
10
9
11
3
3
1
1
4
11
8
4
0
Perception of price
increase and actions
consumers take by
product category
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

Lower price and availability are key drivers of brand choice, with
trust and fair treatment of workers also important
1. Q: In the last 4–6 weeks, when choosing a product/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 (ratings of 1 or 2) value from the important (ratings of 5 or 6) value.
Reason for choosing a product/brand in the past 4–6 weeks1
% of respondents rating reason as 1 or 2 (unimportant) and 5 or 6 (important) on 6-point scale
67
33
28
26
20
23
19
24
55
48
40
33
30
Rational
Beliefs
Sustainability 19
22
23
25
25
4
7
23
8
12
22
21
30
Unimportant Important
Net
importance2
14
6
2
−2
−6
63
47
1
27
11
9
−10
40
Lower price
Available in the store closest to me
Locally sourced/locally owned
Brand is actively supporting the humanitarian effort in Ukraine
Brand has made public statements in support of Ukraine
Brand that treats employees well
Brand has stopped doing business in Russia
Recyclable products, packaging, or initiatives
No artificial ingredients/natural/GMO free
Small or neutral carbon footprint
Sustainably sourced materials
Fair trade practices
Brand that I know and trust

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
Sustainability is more important for Germany, Italy, and Spain,
with Spain additionally valuing a clear position regarding Ukraine
Europe 5
27
21
11
9
1
54
45
24
43
32
5
1
-8
No artificial ingredients/natural/GMO free
Recyclable products, packaging, or initiatives
Locally sourced/locally owned
Available in the store closest to me
Small or neutral carbon footprint
Brand has made public statements in support of Ukraine
Sustainably sourced materials
Fair trade practices
Lower price
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
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McKinsey European consumer sentiment survey: How current events are shaping UK consumer behavior

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