As inflation rises, French consumer hopes for economic recovery wane, with optimism sinking back to the lows of lockdown. Optimism regarding the economic recovery has decreased to 14 percent in France—levels last seen in the depths of COVID-19 lockdown. Top sources of concern are rising prices, the invasion of Ukraine, and political uncertainty. Nine out of ten survey respondents perceive high price inflation in the country, and 60 percent expect prices to rise further over the next year. These trends have implications for loyalty: in the search for higher purchasing power, 69 percent of respondents have tried new shopping behaviors in the last four to six weeks. Household products remain the most impacted category, with 65 percent of consumers switching for cheaper options.

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.
The document should be treated as confidential and should not be shared without written approval
from McKinsey & Company.

2. McKinsey & Company 2
Four emerging consumer themes in April 2022
1 3 4
2
Sources of concern
In France, concerns are driven by
rising prices (cited by 44%), the
invasion of Ukraine (18%), and
political uncertainty (9%)
Concern about prices is stronger in
younger and lower-income groups,
while concerns regarding Ukraine
are stronger in older generations
and high-income respondents
Confidence in economy
58% of respondents have a negative
view of France’s economy, in line with
the rest of Europe
French consumers express the most
uncertainty about shortages,
especially of gasoline (cited by 45%)
Optimism regarding the economic
recovery has decreased to 14%, near
the level during COVID-19 lockdowns
Purchasing behavior
and intent
89% of French consumers
perceive increases in prices, and
60% predict prices will continue to
rise in the next 12 months
Consumers expect to spend more
than usual on groceries and fuel in
the next four to six weeks, offset
by less than usual spending
across other categories
Emerging demand
shifts
Two-thirds of respondents say
they have changed their purchase
behavior
Across generations, 40% tried a
private label or store brand
17% shopped from a different
retailer, looking for better prices,
value, or promotions; of these
consumers, 36% shopped more in
discount stores

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? Bars 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
2 4
3
4
3
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 are, by far, the greatest concern for French
consumers, followed by the invasion of Ukraine
77
51
34
33
31
26
23
21
1
3
Immigration
Rising prices
Extreme weather events/climate change
Invasion of Ukraine
Unemployment/job security
COVID-19 pandemic
Political uncertainty
Cost/accessibility of healthcare
Brexit
Other
44
18
6
9
8
3
8
4
1
0
Top 3 sources of concern1 Top source of concern2
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match French general population 18+ years
Top sources of concern today
% of respondents
Note: Political uncertainty
perception is likely linked to
French presidential elections
happening on the 10th and 24th of
Apr 2022, followed by the deputy
election in June 2022
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?

5. McKinsey & Company 5
Younger generations and lower-income groups are the most
concerned about rising prices
4
6
8
8
9
18
44
4
Overall
Top source of concern1
% of respondents
7 5 6
6 4 7
6 7
11
6 7
12
9 9
8
12 18
26
51 45
24
Low income
3
High
income
4
4
Middle
income
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match French general population 18+ years
5 7 8 5
6 5
9 5
6
7 7
10
8
10 6 8
11
7
8 10
14 13 18
22
47 46 44 39
3
Baby
boomers
1
4
Millennials
3
Gen X
Gen Z
Rising prices
Invasion of Ukraine
Political uncertainty
Extreme weather events
Immigration
Unemployment/job security
COVID-19 pandemic
Other
Split by generation
Split by income
1. Q: Which of the following is your top concern today?

6. McKinsey & Company 6
Rising prices are most often in the top three for low-income
consumers; the high-income group and baby boomers dominate
concerns about Ukraine
Top 3 sources of concern1
% of respondents
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match French general population 18+ years
77
51
34
33
31
26
23
21
1
2
Invasion of Ukraine
Rising prices
COVID-19 pandemic
Brexit
Political uncertainty
Cost/accessibility of healthcare
Extreme weather events/climate change
Immigration
Unemployment/job security
Other
Middle
income
High
income
Low
income Millennials Gen X
Gen Z
Baby
boomers
82
45
33
36
30
29
21
21
0
2
79
51
36
31
28
28
24
20
2
1
63
63
34
31
40
15
25
24
2
3
76
44
43
39
27
23
17
26
3
3
78
47
27
32
32
29
22
28
3
2
77
51
34
34
29
28
19
26
1
1
75
57
37
31
35
23
31
10
0
1
Split by generation
Split by income
1. Q: Which of the following is your top concern today? Figures may not sum to 100%, because of rounding.

7. McKinsey & Company 7
Four emerging consumer themes in April 2022
1 3 4
2
Sources of concern
In France, concerns are driven by
rising prices (cited by 44%), the
invasion of Ukraine (18%), and
political uncertainty (9%)
Concern about prices is stronger in
younger and lower-income groups,
while concerns regarding Ukraine
are stronger in older generations
and high-income respondents
Confidence in economy
58% of respondents have a negative
view of France’s economy, in line with
the rest of Europe
French consumers express the most
uncertainty about shortages,
especially of gasoline (cited by 45%)
Optimism regarding the economic
recovery has decreased to 14%, near
the level during COVID-19 lockdowns
Purchasing behavior
and intent
89% of French consumers
perceive increases in prices, and
60% predict prices will continue to
rise in the next 12 months
Consumers expect to spend more
than usual on groceries and fuel in
the next four to six weeks, offset
by less than usual spending
across other categories
Emerging demand
shifts
Two-thirds of respondents say
they have changed their purchase
behavior
Across generations, 40% tried a
private label or store brand
17% shopped from a different
retailer, looking for better prices,
value, or promotions; of these
consumers, 36% shopped more in
discount stores

8. McKinsey & Company 8
In France, as in other Europe 5 countries, a majority of consumers
view their country’s current economic state negatively
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

9. McKinsey & Company 9
The older and lower-income groups have more negative views of
France’s current economic conditions
58
29
13
Negative
Neutral
Overall
Positive
Confidence in own country’s current state of the economy1
% of respondents
64 56 53
26 31 28
19
Low (<€25K)
10 13
Middle (€25K–50K) High (>€50K)
50 55 60 62
36 29 30 24
14 16 10 13
Gen Z Millennials Gen X Baby boomers2
By income
By generation
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France 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.” Bars may not sum to 100%, because of rounding.
2. Baby boomers includes silent generation.

10. McKinsey & Company 10
Consumers whose main source of concern is rising prices are the
least confident in France’s current economic situation
65
48 52 56
39
27
35 30
30
33
8
17 18 14
28
Rising prices Invasion
of Ukraine
COVID-19
pandemic
Political
uncertainty
Extreme
weather events/
climate change
Confidence in own country’s current state of the economy1
% of respondents who selected this top source of concern
Net
confidence2 −56 −11
−42
−31 −33
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
58
29
13
Neutral
Overall
Positive
Negative
−45
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.” Bars may not sum to 100%, because of rounding.
2. Calculated by subtracting all "negative/very negative" answers from all "positive/very positive" answers.

11. McKinsey & Company 11
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
Interruption of gasoline supply
Unemployment rates/job security
Supply chain shortages
Risk of further escalation of the war
Energy shortages
Food shortages
Impact of influx of refugees
Rising interest rates
Risk of nuclear disaster
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

12. McKinsey & Company 12
36 37 38 34 35 37 32
22
29
35
48 51 50
49 53 52
50
46
48
51
16 12 12 17 12 11
18
32
23
14
Sept 2020
June 2020 Feb 2021
May 2020
Mar 2020 Apr 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
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
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000; 3/22–3/29/2022, n = 1,001; 10/15–10/20/2021, n = 1,000; 2/23–2/27/2021, n = 1,003; 11/9–11/16/2020, n = 1,000; 9/24–9/27/2020, n = 1,077; 6/18–6/21/2020, n =
1,006; 5/21–5/24/2020, n = 1,011; 4/30–5/3/2020, n = 1,011; 4/16–4/19/2020, n = 1,009; 4/2–4/5/2020, n = 1,011; 3/26–3/29/2020, n = 1,003; 3/20–3/22/2020, n = 1,008, sampled to match French general population 18+ years
Consumer optimism has fallen as low as during the COVID-19
lockdowns
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

13. McKinsey & Company 13
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

14. McKinsey & Company 14
Older generations and low-income consumers are more pessimistic
than others about the economic recovery
35
51
14
Overall
Optimistic
Neutral
Pessimistic
Confidence in own country’s expected economic recovery after current crisis1
% of respondents
41 31 33
47 55 52
14 15
12
High (>€50K)
Low (<€25K) Middle (€25K–50K)
23 35 39 37
58
49 48 53
19 16 13
Gen Z Millennials Gen X
10
Baby boomers2
By income
By generation
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match French 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.“ Bars may not sum to 100%, because of rounding.
2. Baby boomers includes silent generation.

15. McKinsey & Company 15
Four emerging consumer themes in April 2022
1 3 4
2
Sources of concern
In France, concerns are driven by
rising prices (cited by 44%), the
invasion of Ukraine (18%), and
political uncertainty (9%)
Concern about prices is stronger in
younger and lower-income groups,
while concerns regarding Ukraine
are stronger in older generations
and high-income respondents
Confidence in economy
58% of respondents have a negative
view of France’s economy, in line with
the rest of Europe
French consumers express the most
uncertainty about shortages,
especially of gasoline (cited by 45%)
Optimism regarding the economic
recovery has decreased to 14%, near
the level during COVID-19 lockdowns
Purchasing behavior
and intent
89% of French consumers
perceive increases in prices, and
60% predict prices will continue to
rise in the next 12 months
Consumers expect to spend more
than usual on groceries and fuel in
the next four to six weeks, offset
by less than usual spending
across other categories
Emerging demand
shifts
Two-thirds of respondents say
they have changed their purchase
behavior
Across generations, 40% tried a
private label or store brand
17% shopped from a different
retailer, looking for better prices,
value, or promotions; of these
consumers, 36% shopped more in
discount stores

16. McKinsey & Company 16
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

17. McKinsey & Company 17
The product category where the most French consumers by far
perceive price increases is groceries
3
3
22
22
25
20
30
31
24
26
31
34
34
30
33
40
35
30
47
45
41
39
39
33
35
31
30
31
31
30
22
26
20
66
23
23
25
25
16
19
17
19
16
14
13
13
15
12
13
1
7
8
8
15
15
16
22
22
22
20
21
23
28
18
32
1
Consumer electronics
2
1
Jewelry
Groceries/food for home
1
Personal-care products
1
2
Pet food and supplies
1
Accessories
Home improvement and gardening supplies
Household supplies
Skin care and makeup
1
Apparel
2
Home decoration and furniture
Sports and outdoors equipment, supplies
Vitamins, supplements, and OTC medicine 1
1
Footwear
Kitchen and dining products
1
1
0
Fitness and wellness services
0
Increased Increased significantly
Decreased significantly/decreased Stayed the same 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
11
89
No
Yes
Net change3
94
68
67
66
63
55
51
51
47
45
44
42
39
36
35
32
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
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/significantly decreased" answers from all "increased/significantly increased" answers.

18. McKinsey & Company 18
As they spend more for essential products, consumers spend less
on discretionary items and save less—and they expect further cuts
Change and expected change of spend in general categories
% of respondents
8 14 18 16
29
49
74
29 18 26
41
42
19
57
65
58
30
9
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Net change3
11 1
41
43 47 −40 2 −26
18
22 17 −40
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match French general population 18+ years
Higher About the same Lower
12
24 29 24
46 50
74
29 24 34
34
40
14
47 47 42
20
10
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Change of spend in the last 4–6 weeks4 Expected change of spend in the next 4–6 weeks4
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" answers from all "higher" answer in each category and time frame.

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
Majorities of consumers expect to spend more than usual on
groceries and fuel, offset by spending cuts across other categories
12
27
41
38
43
47
46
46
62
56
36
21
16
40
50
39
39
50
45
14
13
13
15
8
9
7
7
15
15
13
9
10
12
15
6
Groceries
Restaurant
Tobacco products
Kitchen and dining
Food takeout and delivery
Footwear
10
Alcohol
Toys and baby suplies
Quick-service restaurant
Apparel
Jewelry
Accessories
Household supplies
Personal-care products
Skin care and makeup
Home and furniture
Sports and outdoors
Home improvement, garden
Decreased Stayed the same Increased
13
34
18
41
39
44
27
33
39
17
22
42
36
51
44
45
43
47
19
12
12
8
10
10
15
14
8
61
33
13
31
17
17
14
14
Pet care services
Gasoline
Entertainment at home
Pet food and supplies
Books/magazines/newspapers
Vitamins and OTC medicine
Consumer electronics
Out-of-home entertainment
Fitness and wellness
Personal-care services
Vehicles
Short-term home rentals
Travel by car
Adventures and tours
Cruises
10
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
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
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
−6
−32
−15
−39
−42
−34
−19
−26
−34
26
−11
−41
−11
−31
−30
−37
−40
−41
−6
−33
−29
−34
−12
−19
−31
44
−29
−5
−34
−34
−29
−30
−22
10
5
−34
17
−20
−41
−35
−38
−33
−45
−39
−62
−56
−39
−13
−11
−38
−51
−35
−31
−50
Net change,3
next 4–6
weeks
Net change,3
last 4–6
weeks
−55
34
−21
−6
−41
−13
−28
−28
−30
−31
−38
−37
−49
−3
−32
−27
−24
−43
Change, last
4–6 weeks
1. Q: In the past 4–6 weeks, how has the amount you have spent on these categories changed? Possible answers: “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.

21. McKinsey & Company 21
About two-thirds of consumers are concerned prices have been
increasing and will continue; the least concerned group is Gen Z
62
60
44
35
10
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 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 as 5 or 6 on 6-point scale
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
64 62
62 62
46 42
37 31
11 9
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
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
63
60
47
38
12
Millennials Gen X
Generational cut
All consumers
53
47
38
35
10
Gen Z
Baby
boomers2

22. McKinsey & Company 22
Consumers whose main source of concern is rising prices are more
likely than others to plan price-related changes in their purchases
Agreement with price-related statements1
% of respondents rating agreement as 5 or 6 on 6-point scale
Top source of concern
62
60
44
35
10
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 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 have had to scale back my lifestyle
due to an increase in prices
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
Climate
change
Political
uncertainty
Rising
prices
Invasion of
Ukraine
COVID-19
pandemic
49
62
68 59 48
53
60
63 53 54
42
46
49 31 28
26
40
39 30 24
5
8
10 10 20
Statements All consumers
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 top source of concern.

23. McKinsey & Company 23
Many consumers have changed their purchase behavior in the last
four to six weeks, mainly reducing home energy usage
49
26
19
17
14
11
10
7
6
5
4
3
3
19
I have become more conscious about my home energy usage
I have sped up my plan to purchase a new home
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 stocked up on products (e.g., grocery or household items)
that I use often in the event that there are supply chain shortages
I have offered to shelter/sponsor Ukrainian refugees
I have delayed/cancelled a pending trip/vacation
I have delayed/cancelled a planned purchase of a car/other vehicle
I have purchased supplies to donate to the Ukraine
humanitarian effort and/or have donated money or time to volunteer
I have delayed/cancelled a planned purchase of a new home
I have sold/plan to sell my car or other vehicle
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
None of these
Change in purchase behavior in last 4–6 weeks1
% of respondents
Generational cut
45
24
19
15
12
15
14
14
10
10
10
6
7
13
Millennials
46
22
20
16
14
7
9
10
7
7
6
5
5
19
Gen X
47
26
24
18
18
10
8
5
4
4
3
3
3
18
Gen Z Baby boomers2
54
29
14
18
12
12
10
2
4
4
1
2
1
21
All consumers
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
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.

24. McKinsey & Company 24
Energy usage control was the main change in behavior for all
consumers, independently of their top source of concern
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
Climate
change
35
16
13
8
10
12
6
6
5
3
3
4
Political
uncertainty
24
18
20
13
8
3
3
1
1
2
5
5
Rising prices
26
20
17
17
8
8
7
7
5
3
3
2
Invasion of
Ukraine
31
15
19
10
20
13
5
3
7
4
5
4
COVID-19
pandemic
55
49
50 55 37
20
19
15
15
11
15
15
9
9
6
4
6
25
24
18 16 19
Between −3 and +3
< −3 > +3
Difference from all consumers2, percentage points
Change in purchase behavior in last 4–6 weeks1
% of respondents
Top source of concern
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?
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here top source of concern.
49
26
19
17
14
11
10
7
6
5
4
3
3
19
I have reduced/stopped purchasing products from Russian companies
I have delayed/canceled a planned purchase of a car/other vehicle
I have stocked up on products (e.g., grocery or household items) that I
use often in the event that there are supply chain shortages
I have delayed/canceled a planned purchase of a new home
I have become more conscious about my home energy usage
I have changed my mode of transport to use less gasoline/to save money
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 sold/plan to sell my car or other vehicle
I have reduced/stopped purchasing products from companies that
have not taken a stance on the invasion of Ukraine
I have offered to shelter/sponsor Ukrainian refugees
I have sped up my plan to purchase a new home
I have started/increased my purchase of products from companies
that have taken a stance on the invasion of Ukraine
None of these

25. McKinsey & Company 25
Four emerging consumer themes in April 2022
1 3 4
2
Sources of concern
In France, concerns are driven by
rising prices (cited by 44%), the
invasion of Ukraine (18%), and
political uncertainty (9%)
Concern about prices is stronger in
younger and lower-income groups,
while concerns regarding Ukraine
are stronger in older generations
and high-income respondents
Confidence in economy
58% of respondents have a negative
view of France’s economy, in line with
the rest of Europe
French consumers express the most
uncertainty about shortages,
especially of gasoline (cited by 45%)
Optimism regarding the economic
recovery has decreased to 14%, near
the level during COVID-19 lockdowns
Purchasing behavior
and intent
89% of French consumers
perceive increases in prices, and
60% predict prices will continue to
rise in the next 12 months
Consumers expect to spend more
than usual on groceries and fuel in
the next four to six weeks, offset
by less than usual spending
across other categories
Emerging demand
shifts
Two-thirds of respondents say
they have changed their purchase
behavior
Across generations, 40% tried a
private label or store brand
17% shopped from a different
retailer, looking for better prices,
value, or promotions; of these
consumers, 36% shopped more in
discount stores

26. McKinsey & Company 26
v
Among consumers shopping for groceries and essentials, 69
percent have tried a new shopping behavior
69
40
29
17
15
12
11
10
9
Total: Any new shopping behavior3
Use a new shopping method
Switch to a different brand than normal
Switch from a brick-and-mortar store to online
Try a private-label brand
Shop from a different retailer/store than normal
Shop from a different website than normal
Switch from online to a brick-and-mortar store
Try a new digital shopping method
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 last 4–6 weeks
Activities when shopping for groceries/essentials
39
18
14
9
9
17
7
8
7
Activities
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
96% of consumers noticed a price increase
when shopping for groceries and essentials
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)? Respondents who answered: "Extremely likely" and “Very likely.“
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.

27. McKinsey & Company 27
69
40
29
17
15
12
11
10
9
Switch from brick-and-mortar store to online2
Use a new shopping method
(eg, pickup and food delivery subscription)
Shop from a different website than normal
Total: Any new shopping behavior2
Try a private-label brand
Switch to a different brand than normal
Shop from a different retailer/store than normal
Switch from online to a brick-and-mortar store
Try a new digital shopping method
(eg, ordered groceries via app)
Among consumers shopping for groceries and essentials, younger
generations have more often tried new shopping behaviors
Generational cut
All consumers
Activities when shopping for groceries/essentials in
last 4–6 weeks1
% of respondents
Gen Z
89
41
45
24
30
19
20
19
20
Millennials
76
38
34
18
17
15
15
14
13
Gen X
66
42
27
17
14
10
10
7
8
Baby boomers
59
40
22
13
8
8
5
6
2
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
Between −3 and +3
< −3 > +3
Difference from all
consumers,2 percentage points
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.

28. McKinsey & Company 28
Over one-third of consumers say they shopped more in discount
stores over the last four to six weeks
Retailer formats changed to in last 4–6 weeks1
% of respondents who shopped from a different retailer/store than normal
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
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
Shopping in last 4–6 weeks
14
27
3
19
16
19
32
33
33
39
31
30
55
43
35
36
11
9
5
10
Supermarket
Hypermarket
Discounter
Specialty grocery store
Convenience store
Did not shop there Shopped less Shopped same amont Shopped more Net change2
18
−21
−24
−28
−29
17% of consumers changed their
retailer/store in the last 4–6 weeks

29. McKinsey & Company 29
44
39
21
21
17
16
16
15
13
10
8
8
7
7
6
5
4
4
Products are in stock
Wanted to treat myself
Better quality
Better prices/promotions
Better value for money
Less crowded/has shorter lines
More easily accessible from my home
I wanted to save on the cost of gasoline
Supporting local businesses
Their response to the invasion of Ukraine
More sustainable/environmentally friendly
Family/friend recommendations
Shares my values
Wanted variety/a change from normal
Cleaner/has better hygiene measures
One-stop shop
Offers natural/organic offerings
The company treats its employees well
Among shoppers choosing a new retailer for groceries and
essentials, the strongest drivers are prices and value for money
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
46
43 46
51
30 40
22
22 24
20 22 17
13 22 20
22 10 12
17 20 7
17 22 5
13 8 20
11 10 10
13 10 2
4 2 17
13 2 5
4 8 10
2 2 2
2 2 5
9 8 5
7 4 0
Millennials Gen X Baby boomers
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
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 (eg, toiletries, cleaning products).What were the main reasons you
decided to try this new retailer/store? Respondents could choose up to 3 reasons. Sample size < 50 for millennials and baby boomers.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
17% of consumers changed their retailer/store in the last 4–6 weeks

30. McKinsey & Company 30
A large proportion of consumers shopping for groceries and other
essentials are trading down
30
38
40
42
48
47
45
47
48
53
55
5
5
6
7
5
6
8
9
8
6
5
65
57
54
52
48
47
47
44
43
41
40
Household products
Snacks and confectionary
Dairy and eggs
Hot drinks
Frozen foods
Non-alcoholic beverages
Fresh meat, fish, poultry
Healthcare, beauty, and baby
Fresh fruit and vegetables
Bread and bakery
Alcohol
No change Switched to private label/lower-priced brand
Switched to higher-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
30
14
8
3
−5
−6
−7
−13
−13
−18
−20
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
52% 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 lower cost brand or private label/entry level priced" from those for "switched to higher priced brand“ and “no change.”

31. McKinsey & Company 31
For all age groups choosing new brands of groceries and essentials,
prices and value for money are the strongest drivers
All consumers
53
50
15
11
11
11
10
10
9
9
9
8
8
7
5
3
3
2
Better shipping/delivery cost
Available where I’m shopping
Better value for money
Better prices/promotions
Better quality
Wanted to try a new brand I found
Is natural/organic
Supporting local businesses
Wanted to try new type of product
Wanted to treat myself
The company treats its employees well
Products are in-stock
Larger package sizes
Cleaner/safer
More sustainable/environmentally friendly
Wanted variety/a change from normal
Shares my values
Their response to the invasion of Ukraine
47
24
13
14
12
8
8
11
4
7
9
8
7
3
4
3
Millennials
47
2
53
8
10
8
9
13
8
6
8
12
4
3
5
3
3
3
Gen X
63
0
46
21
9
9
14
7
9
20
9
11
11
13
16
5
9
5
Gen Z
36
5
58
53
11
12
12
10
11
12
7
16
7
10
10
5
2
4
5
2
Baby boomers2
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
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
Between −2 and +2
< −2 > +2
Difference from all
consumers,2 percentage points
52% 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 (e.g., toiletries, cleaning products, etc.).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 generational cut.

32. McKinsey & Company 32
Excluding essentials, consumers perceive the highest price
increases on pet food and home improvement supplies
Perception of price
increase and action
taken by consumers
by product category
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
66
64
55
52
52
50
46
45
44
43
38
37
33
Skin care and makeup
Pet food and supplies
Home decoration and furniture
Home improvement and gardening supplies
Consumer electronics
Vitamins, supplements, and OTC medicine
Apparel
Footwear
Sports and outdoors equipment, supplies
Kitchen and dining products
Fitness and wellness services
Accessories
Jewelry
Perception of price increase1
% of respondents rating change
4 or 5 on 5-point scale
Action taken when price increase was perceived2
% of respondents reacting to perceived price increase
42
37
34
47
27
40
31
41
31
42
25
25
40
8
25
21
13
27
26
23
25
26
16
35
37
21
11
6
22
13
6
15
12
19
19
24
14
15
10
4
3
6
5
3
5
6
8
3
13
7
6
1
19
19
27
20
22
19
21
16
22
26
21
24
10
8
6
6
10
8
8
7
10
16
10
14
8
13
13
21
20
6
28
18
20
12
19
13
25
27
22
20
6
5
5
3
13
2
10
10
10
7
8
5
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
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.

33. McKinsey & Company 33
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
40
46
21
30
36
25
43
16
40
37
20
20
16
‘Rational’
Beliefs
Sustainability
‘Rational’ reasons for choosing a product or brand dominate;
consumers say Ukraine has had relatively little influence on choices
12
14
18
19
22
6
7
9
7
11
37
33
38
Unimportant Important
Source: McKinsey & Company France Consumer Pulse Survey, 4/12–4/18/2022, n = 1,000, sampled to match France general population 18+ years
Net
importance2
28
16
7
2
−6
40
36
27
26
−13
−17
−22
33
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 (rating of 1 or 2) value from the important (rating of 5 or 6) value.
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
No artificial ingredients/natural/GMO free
Recyclable products, packaging, or initiatives
Small or neutral carbon footprint
Sustainably sourced materials
Fair trade practices
Brand that I know and trust

34. McKinsey & Company 34
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,
France in line with average values of the 5 countries
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
Sustainably sourced materials
Small or neutral carbon footprint
Brand has stopped doing business in Russia
Locally sourced/locally owned
Fair trade practices
Available in the store closest to me
Brand has made public statements in support of Ukraine
Lower price
Brand that I know and trust
Brand that treats employees well
Brand actively supports humanitarian effort in Ukraine
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