McKinsey & Company 1
Five emerging consumer themes in October 2021
1
Optimism and spend
intent returning
More Italian consumers
are optimistic about
economic recovery (35
percent, versus 17 percent
in February), sustained by
the start of the vaccination
campaign
Over one-third of
consumers want to
splurge; overall spending
intent is still negative but
with a growth trend
2
Stickiness of digital
In almost all product
categories, more than half
of consumers shop
omnichannel today
Across multiple product
categories, about 25
percent of consumers cite
social media as an
influence for their
purchase decisions
5
Preparation for
holiday shopping
Half of consumers say
they will spend about the
same amount during
2021 holidays as last
year; social media will
influence shopping
decisions
About four in ten people
will start holiday shopping
earlier, half of which just
want to do something fun
4
A tentative return to
out-of-home
Seven in ten Italian
consumers have
structurally modified their
behavior when out of
home
Out-of-home activity has
increased since
February—particularly
social activities, indoor
dining, and fitness
3
Loyalty is under
threat
More than half of
consumers who tried to
buy an out-of-stock item
went to another retailer to
complete the purchase
Almost three-fourths of
consumers have tried a
new shopping behavior in
the last three months,
most often buying a new
brand

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

McKinsey & Company 3
36 34 36 31
26
33
21
13
53 54 50 57
60
54
62
52
12 12 14 12 14 13 17
35
Sept 2020 Nov 2020 Oct 2021
Mar 2020 June 2020
Apr 2020 May 2020 Feb 2021
Optimism and spend intent returning | Current as of October 2021
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.” Figures may not sum to
100% because of rounding.
2. Average of weekly pulse surveys shown for March through May 2020.
Source: McKinsey & Company COVID-19 ItalyConsumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091; 11/09–11/16/2020, n = 1,076; 09/24–09/27/2020, n = 1,071; 06/18–06/21/2020, n = 1,008; 05/21–05/24/2020, n =
1,000; 04/30–05/03/2020, n = 1,001; 04/16–04/19/2020, n = 1,002; 04/02–04/05/2020, n = 1,009; 03/26–03/29/2020, n =1,005; 03/20–03/22/2020 n = 1,003, sampled to match Italy general population 18+ years
Overall optimism has increased in 2021, following the start of the
vaccination campaign
Confidence in own country’s economic recovery after COVID-19,1 % of respondents
Optimistic: The
economy will rebound
within 2–3 months and
grow just as strong as or
stronger than before
COVID-19
Mixed: The economy
will be impacted for 6-12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-
19 will have lasting
impact on the economy
and show regression or
fall into lengthy recession
20202 2021

McKinsey & Company 4
Higher-income consumers are significantly more optimistic than
lower-income groups
Optimism and spend intent returning | Current as of October 2021
11
13
27
14
35
21 21
46
15
10
0
5
25
20
30
35
40
45
50
Sept 2020
18
Feb 2021 Oct 2021
Low (<€25k) Medium (€25k–50k) High (>€50k)
27
25
18
28
19
13
20
18
10
20
0
30
5
10
15
50
35
25
40
45
Feb 2021
Sept 2020 Oct 2021
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.”
Optimism by income Pessimism by income
Confidence in own country’s economic recovery after
COVID-19 by income level,1 % of respondents
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091; 09/24–09/27/2020, n = 1,071, sampled to match Italy general
population 18+ years

McKinsey & Company 5
Optimism holds across generations; vaccinated consumers are
driving the trend
Optimism and spend intent returning | Current as of October 2021
Confidence in own country’s economic recovery after COVID-191
% 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.”
2. Baby boomers includes silent generation.
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years
By generation By vaccination status
11
25
51
59
38
16
Vaccinated Unvaccinated
5
18 13 14
53
48 54 51
42
34 33 35
Gen X
Gen Z Millennials Baby boomers2
Optimistic Pessimistic
Mixed

McKinsey & Company 6
Optimism and spend intent returning | Current as of October 2021
28 27 26
36
12
8 6
4
60
65 68
60
Gen Z Millennials Gen X Baby boomers3
30 33
7 3
63 64
Unvaccinated
Vaccinated
30
7
63
Overall
1. Q: When do you expect your routines will return to normal? Figures may not sum to 100% because of rounding.
2. Q: Which best describes your vaccination status?
3. Baby boomers includes silent generation.
In or after 2022 In 2021 Not affected/already returned
By generation By vaccination status2
Overall, ~60% of
consumers expect to
return to normalcy in
2022 or after, with no
clear difference
across generations
~30% of consumers
are already engaging
in normal routine
While about 30 percent say their routines are back to normal,
most expect normalcy to return during or after 2022
Expectations on routines returning to normal,1 % of respondents
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 7
An increasing portion of consumers indicate that their income,
spending, and savings are stable
Optimism and spend intent returning | Current as of October 2021
Increased slightly/a lot
Reduced slightly/a lot About the same
Past 2 weeks
3
41
54
Past 2 weeks
3
44
56
3
67
30
Past 2 weeks
44
9
47
8
Past 2 weeks
45
Past 2 weeks
46
8
53
39
Past 2 weeks
45
57
16
39
Past 2 weeks
33
15
52
Past 2 weeks
17
26
Past 2 weeks
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091; 11/09–11/16/2020, n = 1,076, sampled to match Italy general
population 18+ years
1. Q: How has the coronavirus (COVID-19) crisis affected the following over the past 2 weeks? Figures may not sum to 100% because of rounding.
Household income Household spending Household savings
Nov 9–16 Feb 23–27 Oct 15–20
Nov 9–16 Feb 23–27 Oct 15–20
Nov 9–16 Feb 23–27 Oct 15–20
COVID-19 impact on household finances,1 % of respondents

McKinsey & Company 8
About 40 percent of consumers say their finances are either
unaffected or back to normal in 2021
Optimism and spend intent returning | Current as of October 2021
1. Q: When do you expect your personal/household finances will return to normal? Figures may not sum to 100% because of rounding.
2. Q: Which best describes your vaccination status?
3. Baby boomers includes silent generation.
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years
By generation By vaccination status2
~60% of baby
boomers say their
finances either
were unaffected or
are back to normal,
vs ~30% for Gen Z
and millennials
Expectations on personal/household finances
returning to normal,1 % of respondents
32
37 37
58
11
8 6
57 55 57
40
Baby boomers3
Gen Z Millennials Gen X
2
43
38
6
7
51 55
Vaccinated Unvaccinated
Not affected/already returned
In or after 2022 In 2021
43
6
51
Overall

McKinsey & Company 9
While consumers still want to splurge, this intent to spend has
moderated since early 2021, especially among younger consumers
Optimism and spend intent returning | Current as of October 2021
1. Q: With regard to products and services you will spend money on, do you plan to splurge/treat yourself in 2021? For example, are there categories of products or services you have spent less on over the last year and half which you feel you
will spend more on now?
2. Baby Boomers includes silent generation. Insufficient sample (n < 30).
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091, sampled to match Italy general population 18+
years
Millennials
Gen X
Baby boomers2
40%
−28
56%
−15
Gen Z 58%4
−31
44%
−3
46%
−3
56%
−14
19%
−8
28%
−13
31%
−11
20%
−7
38%
−9
51%
−14
Generation
Respondents who plan/do not plan to
splurge/treat themselves in 20211
% of respondents
Low
(<€25k/year)
Middle
(€25k–50k/year)
High
(>€50k/year)
>70%
<30% 50–70%
30–50% p.p. change from Feb 21
XX
Respondents who plan to splurge, by household income, %
47
53
Feb 2021
Plan on
splurging
63
37
Oct 2021
Do not plan
on splurging
Change < −10 pp
.

McKinsey & Company 10
Travel and out-of-home dining see the strongest consumer intent to
splurge, although intent declined since February
Optimism and spend intent returning | Current as of October 2021
Categories where consumers intend to treat themselves1
% of all respondents with intent to splurge
1. Q: You mentioned that you plan to splurge/treat yourself in next 6 months. Which categories do you intend to treat yourself to? Please select all that apply.
2. Baby boomers includes silent generation.
45
43
38
34
23
20
16
16
16
15
12
10
10
Items for your home
Electronics
Travel, lodging, and vacation
Personal services (eg, spa)
Restaurants, dining out, bars
Apparel, shoes, accessories
Out-of-home entertainment
Makeup, skin-care products
Sports apparel and equipment
Fitness, sports, and outdoors
Household essentials
Pets
Outdoor living (eg, furniture)
Millennials Gen X
Gen Z
Baby
boomers2
39 40 38 66
50 35 39 56
41 44 36 29
27 38 36 29
34 25 15 23
30 18 16 19
16 18 19 12
11 22 14 12
23 18 17 6
Generational cut
18 17 14 9
14 14 9 10
16 11 10 6
16 8 13 3
Change from
Feb 2021,
percentage points
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091, sampled to match Italy general population 18+ years
Between −3 and 3
< −3 >3
−8
−6
2
0
−1
−12
N/A
−1
N/A
0
1
N/A
N/A
Categories
Difference from all respondents,
percentage points

McKinsey & Company 11
Though consumers report negative net spending intent overall,
discretionary categories have increased since February
Optimism and spend intent returning | Current as of February 2021
Net intent >1
Net intent −15 to 0
Net intent < −15
8
17
26
28
33
31
29
25
41
38
28
8
8
19
36
29
33
25
14
13
7
17
9
13
8
7
13
7
8
8
12
9
7
6
Tobacco products
Groceries
Quick-service restaurant 10
Footwear
5
Restaurant
Personal-care products
Food takeout and delivery
Household supplies
Alcohol
Apparel
Jewelry
Accessories
Toys and baby
Skin care and makeup
Home and furniture
Sports and outdoors
Kitchen and dining
Home improvement, garden
Decrease Stay the same Increase
11
16
12
22
32
33
16
28
17
18
33
38
24
34
36
40
43
35
6
12
6
20
9
13
8
25
13
14
19
19
19
17
16
18
Pet food and supplies
Vitamins and OTC medicine
10
Out-of-home entertainment
Entertainment at home
Books, magazines, newspapers
Consumer electronics 10
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
intent2
1. Q: Over the next 2–3 months, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2. Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
Expected spending per category over the next 2–3 months vs usual1
% of respondents who bought these categories at least once since 2019
−1
3
−2
8
20
45
23
28
23
18
18
−2
1
10
16
21
6
10
Change since
Feb 2021
Change since
Feb 2021
−1
7
2
2
14
50
8
30
22
31
19
36
32
52
48
49
43
46
Net
intent2
−33
6
−15
−1
−24
−12
−13
−21
−23
−14
−20
−12
−31
0
−11
−20
−26
−19
−2
−16
−22
−13
−7
−15
−9
7
−24
−5
−15
−17
−23
−27
−4
−20
−5
−17
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091, sampled to match Italy general population 18+ years

McKinsey & Company 12
−40
10
−80
−50
−70
−10
20
−60
0
−20
−30
Nov 2020 Feb 2021
Mar 2020 Apr 2020 May 2020 Sept 2020 Oct 2021
Out-of-home entertainment
Groceries
Food takeout and delivery
Skin care and makeup
Consumer electronics
Fitness and wellness
Apparel
Domestic flight
June 2020
Expected spending per category over the next 2–3 months vs usual1
Net intent2
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091; 11/9–11/16/2020, n = 1,076; 09/24–09/27/2020, n = 1,071; 06/18–06/21/2020,
n = 1,008; 05/21–05/24/2020, n = 1,000; 04/30–05/03/2020, n = 1,001; 04/16–04/19/2020, n = 1,002; 04/02–04/05/2020, n = 1,009; 03/26–03/29/2020, n =1,005; 03/20–03/22/2020 n = 1,003, sampled to match
Italy general population 18+ years
Net intent for discretionary spending is improving but remains
negative since the start of the pandemic
1. Q: Over the next 2–3 months, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2. Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
Optimism and spend intent returning | Current as of February 2021
2020 2021

McKinsey & Company 13
1. Q: Which best described how you have researched the following categories over the last 3 months?
2. Q: Which best described how you have purchased the following categories over the last 3 months?
52
48
41
40
35
32
28
28
27
26
25
23
23
23
15
14
46
49
55
51
59
53
64
57
61
60
63
67
64
61
69
61
2
3
4
9
6
15
8
15
12
14
12
10
13
16
16
25
Kitchen and dining
Groceries
Household supplies
Pet food, supplies
Footwear
Vitamins, supplements, OTC medicine
Fitness and wellness services
Personal-care products
Skin care and makeup
Jewelry
Home improvement, gardening supplies
Home decoration, furniture
Apparel
Accessories
Sports and outdoors equipment, supplies
Consumer electronics
Research and purchase only in stores Omnichannel Research and purchase only online
Most consumers shop in an omnichannel way across product
categories
Stickiness of digital | Current as of October 2021
Product searches1 and purchases2 by channel
% of respondents who purchased in these categories in the last 3 months
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 14
Across categories, about 25 percent of consumers cite social media
as an influence, with larger shares for younger generations
Stickiness of digital | Current as of October 2021
1. Q: Think about the purchases you have made in the following categories over the past 3 months. Were you influenced toward a certain brand by a post on social media in the following categories?
37
36
35
34
33
30
29
29
27
23
20
19
17
17
15
13
Sports and outdoors equipment, supplies
Apparel
Jewelry
Home decoration and furniture
Accessories
Skin care and makeup
Fitness and wellness services
Consumer electronics
Footwear
Home improvement, gardening supplies
Personal-care products
Vitamins, supplements, OTC medicine
Household supplies
Kitchen and dining
Groceries
Pet food and supplies
Millennials Gen X
Gen Z
Baby
boomers2
Generational cut
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091, sampled to match Italy general population 18+ years
Between −3 and 3
< −3 >3
Categories
Categories where respondents were influenced by social media1
% of respondents who purchased in these categories in the last 3 months
Difference from all respondents,
percentage points
35 34 28
55 46 33 19
44 43 26 26
63 42 30 15
55 35 35 20
48 35 26 19
59 35 27 14
41 32 30 17
52 32 25 13
39 30 23 14
37 29 18 9
18 24 19 15
21 22 20 10
26
22
52
24
25
20
16
13
16
16
9
7
4

McKinsey & Company 15
Using more
Using same
Using less
Italian consumers are intensifying usage of pickup and delivery
services
Stickiness of digital | Current as of October 2021
14
14
25
29
17
9
16
7
12
10
26
19
5
19
33
57
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years
40
10
53
51
40
4
37
35
12
8 52
54
9
51
29
41
6
58
38
4
48
48
42
8
10
46
45
66
45
7
44
55
41
41 52
9
54
37
10
8
53
4
5
68
28
4
50
42
1. Q: And have you used or done any of the following in the last 3 months? If yes, Q: Which best describes when you have done or used each of these items?
Frequency of participating1
% shown among consumers who have participated in the activity in the last 3 months
Used or did in last 3 months
% of total respondents
Drive-thru line for a fast-food restaurant
Curbside pickup from a restaurant
Used a food delivery provider
Self checkout or scan-and-go at a physical store
Buy online, pick up in store
Curbside delivery at a store
Purchased secondhand products online
Downloaded/used a new store/restaurant app
Purchased directly from social media
Used an app/website for same-day delivery
Used an app/website for delivery within 1 hour
Shopped at a store I had not shopped at before for groceries
Cooked regularly for myself/my family
Personal care, grooming at home
Tried making something myself/DIY project
Changed my primary grocery store

McKinsey & Company 16
Italian consumers have replaced out-of-home activities with at-
home alternatives, such as meal delivery and wellness apps
Stickiness of digital | Current as of October 2021
9
10
7
3
32
27
56
21
11
2
23
9
5
12
16
21
64
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years
Using less Using same Using more
60
68
42
62
5
4
3
57
57
38
1
63
34
54
6
53
54
41
6
63
39
7
12
33
55
50
43
2
75
20
4
5
31
7
37
44
2
45
29
45
49
25
6
31
5
6
63
5
44
52
58
1. Q: Have you used or done any of the following in the last 3 months?; Q: Which best describes how often you have used each of the following items in the past 3 months?
Frequency of participating1
% shown among consumers who have participated in the activity in the last 3 months
Used or did in last 3 months
% of total respondents
Wellness app
Digital workout bike or machine
Online personal training/fitness
Grocery delivery
Restaurant food delivery
Meal kit delivery
Online streaming
Video conferencing for professional use
Virtual hangouts and video chats for personal use
Telemedicine for physical health care
Telemedicine for mental health care
Playing online games
Watching online games
Remote learning for myself
Remote learning for my kids
Used social media
Used TikTok

McKinsey & Company 17
More than half of consumers who could not purchase at least one
item switched retailers to get a proper substitute
Loyalty is under threat | Current as of October 2021
1. Q: Over the last 3 months, have you wanted to buy something and not been able to purchase it because it was out of stock or otherwise not available?
2. Q: The most recent time this happened (when you wanted to buy something and it was not available), what did you do?
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years
Respondents who planned to purchase
something but could not, due to unavailability1
% of respondents
33
24
19
15
9
Bought a different brand or similar
product at a different retailer
Waited until it was available
at the same retailer
Bought the product
at a different retailer
Did not buy anything
Bought a different product
at the same retailer
Consumer responses to stockouts2
% of respondents who could not make a planned purchase
54
46
Oct 2021
Could not purchase
at least 1 item
Able to purchase
all items

McKinsey & Company 18
73
43
40
31
21
12
Private label/store brand
Any new shopping behavior
Different brand
Different retailer/store/website
New digital shopping method
New shopping method3
Loyalty is under threat | Current as of October 2021
Generational cut
All consumers
Between −3 and 3
< −3 >3
1. Q: Over the past 3 months, which of the following have you done?
2. Baby boomers includes silent generation.
3. “New shopping method” includes curbside pickup and delivery apps.
Behaviors in past 3 months1
% of respondents
30 to 40 percent of Italian consumers, especially millennials and
Gen Z, continue to switch brands or retailers
Difference from all respondents,
percentage points
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years
Gen Z Millennials
84 85
42 47
54 47
36 42
25 29
15 21
Gen X Baby boomers2
74 57
42 40
42 28
32 20
23 12
12 5

McKinsey & Company 19
Value 58
Availability 15
Purpose-driven 27
Quality/organic 30
Novelty 39
Personal choice 22
Health/hygiene 9
All consumers
Reason for trying a new brand since COVID-19 began1
% of respondents who tried a new brand since COVID-19 began
Loyalty is under threat | Current as of October 2021
1. Q: You mentioned you tried a new/different brand than what you normally buy. What were the main reasons that drove this decision? Select up to 3 relevant reasons. “Brand” includes different brand, new
private label/store brand. Overarching reason based on % of individual respondents responding to at least 1 reason in the group.
2. Baby boomers includes silent generation.
13
35
Better value
Wanted to try a type of product I’ve never tried before
Products are in stock
Is natural/organic
Better prices/promotions
Shares my values
Better shipping/delivery cost
Wanted to try a new brand I found
8
7
Larger package sizes
21
Better quality
Supporting local businesses
Is more sustainable/better for the environment
The company treats its employees well
12
Wanted to treat myself
Wanted variety/a change from my normal routine
29
Is cleaner/safer
21
Is available where I’m shopping (ie, in-store or online)
6
7
19
13
6
6
12
15
9
Convenience 8
24 32
31
31 40
35
7 5
6
9 4
7
12 16
18
8 8
6
12 12
13
8 6
4
10 2
3
18 23
17
15 13
11
18 24
23
18 25
23
15 10
10
14 11
13
12 3
10
Baby
boomers2
Gen Z and
millennials Gen X
7 7
10
Between −2 and +2
< −2 >2
While value and novelty are top reasons for consumers to switch
brands, 27 percent have switched for purpose-driven reasons
x Net % of respondents per category
Difference from all respondents,
percentage points
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 20
Tentative return to out-of-home | Current as of October 2021
50
12
11
42
34
13
Oct 2021
May 2020
Feb 2021
Nov 2020
June 2020
Sept 2020
Overall
Vaccinated Unvaccinated
51
35
47
50
Gen Z Millennials
50
Gen X Baby boomers3
51
53
48
Medium
(€25k–50k)
Low (<€25k) High (>€50k)
50
1. Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart shows those already participating in these activities
2. Gen Z are people under 25 years old, millennials are 25–44 years old, Gen X are people 45–54 years old, baby boomers are 55 years old and above
3. Baby boomers includes silent generation
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, Survey 2/23–2/27/2021, n = 1,091; 11/09–11/16/2020, n = 1,076; 09/24–09/27/2020, n = 1,071;
06/18–06/21/2020, n = 1,008; 05/21–05/24/2020, n = 1,000; sampled to match Italy general population 18+ years
By
generation2
By
vaccination
adoption
By income
51%
of baby boomers are
doing out-of-home
activities
53%
of more high-income
households are doing
out-of-home activities
51%
of people who are
vaccinated are doing
out-of-home activities
Consumers engaging in ‘normal’ out-of-home activities,1 % of respondents
Engagement in ‘normal’ out-of-home activities increased
substantially

McKinsey & Company 21
Out-of-home activities done in the past 2 weeks1
% shown for respondents who engaged in the activity at least once prior to COVID-19
Tentative return to out-of-home | Current as of October 2021
1. Q: Did you leave your house for the following activities over the past 2 weeks?
Social
Personal
care
Entertain-
ment 55
28
23
21
40
50
39
72
64
Attend an outdoor event
Dine indoors at a restaurant or bar
Go to a hair or nail salon
Go out for family entertainment
Attend an indoor cultural event
Visit a crowded outdoor public place
Go to the gym or fitness studio
Get together with family
Get together with friends
78
94
83
66
40
42
47
11
25
18
18
Travel by airplane
Shop for groceries/necessities
Work outside my home
Travel more than 2 hours by car
Shop for non-necessities
Go to a shopping mall
Use public transportation
Use a ride-sharing service
Travel by train
Stay in a hotel
Rent a short-term home
Work
Shopping
Transport/
travel
≥50%
<50%
High consumer engagement seen across many out-of-home
activities, particularly shopping and social activities
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; sampled to match Italy general population 18+ years

McKinsey & Company 22
1. Q: With the rise of the Delta variant of COVID-19, how, if at all, has your out-of-home behavior changed?
21 21 19
38 40 41
39 36 37
2 3
Low (<€25k) Medium
(€25k–50k)
3
High (>€50k)
Tentative return to out-of-home | Current as of October 2021
20 17
40
37
37
43
3
Vaccinated
3
Unvaccinated
20
39
38
Engage less
3
Overall
Engage with
adjusted behavior
Engage same as
before Delta
Engage more
By income By vaccination status
Overall, consumers
are more cautious
when going out, with
no major difference
across income
bands
One-fifth of
unvaccinated
consumers have not
reduced or changed
their out-of-home
behavior because of
the Delta variant
Adjustments to out-of-home behavior due to prevalence of Delta variant,1 % of respondents
Roughly 80 percent of consumers have changed the way they
engage in out-of-home activities because of the Delta variant
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 23
Tentative return to out-of-home | Current as of October 2021
1. Q: Which best describes how you are engaging in each of these activities? Possible answers: “Not doing this at all”; “Doing this in the same way as pre-COVID-19 but less often”; “Doing this in a modified way vs pre-COVID-19”;
“Doing this just as much and in the same way as I did pre-COVID-19.”
Work
Shopping
Transport/
travel
Social
Personal
care
Entertain-
ment
32
65
37
63
35
38
Dine indoors at a restaurant or bar
62
65
Go out for family entertainment
Attend an indoor cultural event
35
Attend an outdoor event
Visit a crowded outdoor public place 68
30
70
Go to a hair or nail salon
26
74
Go to the gym or fitness studio
34
66
Get together with family
31
69
Get together with friends
Work outside my home
35
76
Travel by airplane
28
29
71
Shop for groceries/necessities
72
Shop for non-necessities
66
34
66
Go to a shopping mall
41
Stay in a hotel
24
Travel more than 2 hours by car
34
40
Use public transportation
25
75
Use a ride-sharing service
Travel by train
36
64
65
60
39
61
Rent a short-term home
59
Doing less, doing in a modified way
Doing as much as and in the same way as pre-COVID-19
Engagement in out-of-home activities,1 % of respondents
Depending on the category, about 60 to 75 percent of consumers
have modified their behavior when out of home
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 24
Main life events done in the last 12 months as a result of COVID-19,1 % of respondents
Tentative return to out-of-home | Current as of October 2021
Change >3 pp
13
11
13
22
7
3
10
4
3
3
3
Renovated/remodeled my home
Set up a specific work-from-home space
Moved into a smaller home
Set up a gym at home
Worked more from home
Decided to change jobs
Got a new pet at home (eg, dog, cat)
Started homeschooling children
Moved into a bigger home
Bought a property
Sold a property
Oct 2021
Pet adoption
House move
Investments/
divestments
Total2
Change from
Feb 2021,
percentage points
2
1
1
1
0
10
Work/study
change
−5
2
N/A3
29
7
Home
renovation
−3
−1
5
30
6
1. Q: Which of the following have you done in the last 12 months as a result of the COVID-19 crisis?
2. Total % of people who choose option(s) in the category.
3. Data not available from Feb 2021 survey.
Even though consumers have increased out-of-home activity,
investments in home environment were high during past 12 months
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/22/2021, n = 1,014; 2/23–2/27/2021, n = 1,091, sampled to match Italy general population 18+ years

McKinsey & Company 25
Three themes are emerging among Italian consumers for the 2021
holiday shopping season
Consumers return to stores
Almost half of all consumers (48%)
plan to go to stores in person for
shopping; younger consumers expect
to focus more on online research,
especially social media and brand
websites
Spend pulled forward Loyalty being tested
Many consumers (39%) are spending
earlier than last year due to potential
product shortages (38%), shipping
delays (32%), and concern about
unexpected COVID-19 challenges
(34%)
78% of consumers say they will shop
differently this year, with the main
switch (33%) being to different
retailers. Primary decision factor is
price, along with quality for younger
shoppers and convenience for older
ones
1 2 3

McKinsey & Company 26
Overall, consumers indicate a rather neutral attitude toward the
holiday shopping season; younger consumers are polarized
Preparation for holiday shopping | Current as of October 2021
27
34 29
23
28
34 45 63
44
31
25
14
Baby
boomers2
Gen Z Millennials Gen X
1. Q: Which best describes your general attitude toward the holiday shopping season? Selected from "Anxious," "Stressed," "Neutral," "Eager,“ "Excited," and "Other."
2. Baby boomers includes silent generation.
28
46
25
Overall
Excited/
eager
Neutral
Stressed/
anxious
Consumer attitudes toward the 2021 holiday shopping season1
% of respondents
By annual income By generation
28 28 30
45 48 43
26 23 28
Low (<€25k) Medium
(€25k–50k)
High (>€50k)
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 27
Majority of consumers plan to spend about the same as last year
across all categories during 2021 holidays
Preparation for holiday shopping | Current as of October 2021
55
23
Out-of-
home eating
65
20
12 9
18
Personal travel
66
27
Family travel
19
24
67
31
15
Gifts (for
myself and
others)
15
65
Redecorate my
home, put out
seasonal items
23
46
Large
household
appliances
1. Q: If you compare the upcoming holidays 2021 with the ones last year, how much do you plan to change your spending level in the following categories?
Will spend more Will spend about the same Will spend less
2021 holiday spending plans vs spending in 20201
% of respondents who spent on the category during the holidays in 2020
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years
There is a propensity to increase
spending in outdoor activities
(ie, traveling and out-of-home
eating) in light of the recent
reduction of COVID-19
restrictions

McKinsey & Company 28
Younger consumers plan to research holiday spending through
social media, while in-store browsing remains popular for all ages
Preparation for holiday shopping | Current as of October 2021
48
32
27
26
25
22
14
9
5
Browsing in pop-up stores
Retailer websites
Advertisements from TV or streaming media
Browsing in stores
Brand websites
Offline advertisements
Browsing through holiday markets
Emails from relevant retailers
Social media
Generational cut
Gen Z
43
28
Millennials
45
22
Gen X
48
24
Baby
boomers3
53
10 5 5 2
21 16 14 9
39 35 17 10
27 30 39 29
27
32 31 30 18
6 9 11 9
17 27 25 30
Research channels
Between −3 and 3
< −3 >3
Difference from all respondents, percentage points
1. Q: Which channels are you planning to use to get new ideas and do research for your holiday shopping? Please select top 3.
2. Offline advertisements include catalogs, fliers, magazines, and newspaper advertisements.
3. Baby boomers includes silent generation.
Consumer research plans by channel for holiday 20211
% of all respondents
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 29
47
2
Social media is expected to have significant influence on holiday
purchase decisions among younger consumers
Preparation for holiday shopping | Current as of October 2021
1. Q: How much influence do you expect social media to have on your holiday purchase decisions this season? Selected from "Significant influence," "Some influence," and "Will not influence."
2. Q: Which channels do you think will influence your holiday purchase decisions? Asked of respondents indicating social media will influence their 2021 holiday purchases.
3. Baby boomers includes silent generation.
Expected influence of social media on 2021 holiday
purchases,1 % of respondents
52
26
35
54
73
48
74
65
46
27
Overall
Gen Z
Millennials
Gen X
Baby boomers3
Will not influence Will influence
39 46
74 46 25 13 8
67
65 30 19 16 8
54
65 43 23 15 18 4
38
67 43 8 21 9
59
61 45 27 19 15 6
Most influential social-media channels2
% of respondents who expect social-media influence
Top 3 platforms by %
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years
Facebook
YouTube Instagram TikTok Twitter Snapchat
Pinterest

McKinsey & Company 30
Although consumers are more willing to join get-togethers on the
upcoming holidays versus 2020, most plan to limit their size
Preparation for holiday shopping | Current as of October 2021
1. Q: What best describes what you expect to do for the holidays this year [2021]? Figures may not sum to 100% because of rounding.
2. Q: What best describes your holiday get-togethers last year [2020]? Figures may not sum to 100% because of rounding.
3. Baby boomers includes silent generation.
Split by annual income Split by generation
13 13 5
6 5 8 13 5
18 21 33 23 28 26
10 16
23 24 21 35 23 22
1 19
54 47 33 29 36 48
−16 60
Medium
(€25k–
50k)
Low
(<€25k)
High
(>€50k) Millennials Gen X
Gen Z
Baby
boomers3
Change
from 2020,2
percentage
points
Holiday plans in 20211
% of respondents
< −3 Between −3 and 3 >3
Difference from all respondents, percentage points
8
23
23
47
Will travel to a limited family get-together
Will travel to and attend a large get-
together with family and friends
Do not plan to travel and will limit getting together
to immediate family only
Will not travel but will have a family/friends
get-together outside my immediate family
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 31
Number of in-person holiday-related events is expected to decrease
compared with pre-COVID-19 across all generations
Preparation for holiday shopping | Current as of October 2021
1. Q: About how many in-person holiday-related events do you attend in a typical year without COVID-19?
2. Q: Compared with the number of in-person events you attended pre-COVID-19, about how many in-person events do you expect to attend over the holidays this coming year [2021]?
3. Baby boomers includes silent generation.
6.1
3.8
1.9
Family gatherings
Parties with friends
Work-related gatherings
Event type
Between −1 and 1
< −1 >1
Millennials Gen X
Gen Z
Baby
boomers3
Generation cut
4.8 5.6 5.7 7.4
5.4 3.8 3.5 3.5
2.1 2.4 2.3 1.0
Difference in
number vs
pre-COVID-19
−1.4
−1.6
−0.8
Holiday-related events consumers attended1 or expect to attend2 in 2021
Number of events
Difference from all respondents, percentage points
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 32
1. Q: Do you plan to shop for the holidays earlier or later in 2021 compared with last year’s holiday season [2020]? Possible answers: “significantly earlier”; “slightly
earlier”; “starting at about the same time”; “slightly later”; “significantly later”; “I am not planning to do any holiday season shopping.” Figures may not sum to 100%
because of rounding; 10% of Italian consumers surveyed indicated they do not plan to shop for the holidays this year.
2. Baby boomers includes silent generation.
3. Q: What are the primary reasons you plan to shop earlier for the holidays in 2021?
4
Low
6
38
56
38
58
Medium
40
56
3
High
About the
same time
Earlier 39
Later 4
57
Overall
Overall By income By generation
45
46
8
Gen Z Millennials
41
7
53
40
55
5
Gen X
34
65
1
Baby
boomers2
More consumers, especially younger generations, plan to start
holiday shopping earlier this year
Preparation for holiday shopping | Current as of October 2021
Main reasons for consumers
to start shopping earlier3
% of respondents who plan to shop
earlier in 2021
38%
32%
27%
34%
Holiday shopping start vs last year1
% of respondents who plan to shop for the holidays this year
of Italian consumers are
concerned about
availability
of Italian consumers are
concerned about
shipping lead time
of Italian consumers
want to do something
fun right now
of Italian consumers are
concerned about
unexpected challenges
due to COVID-19
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 33
While the majority of Italian consumers intend to start their
holiday shopping in November, over 10 percent began by October
Preparation for holiday shopping | Current as of October 2021
13
52
34
1
I already started
In November
In December
In January
21
23
56
75–100% of my shopping
50–74% of my shopping
1–49% of my shopping
1. Q: When do you plan to start your shopping for the seasonal holidays this year? Excludes 10% of Italian respondents indicating they would do no holiday shopping. Figures may not sum to 100% because of rounding.
2. Q: How much of your holiday season shopping have you done so far? Asked of respondents who indicated they already started.
Holiday shopping timing, 20211
% of respondents who plan to shop for the holidays this year
Holiday shopping completion status, 20212
% of respondents who already started
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 34
Roughly one-third of consumers expect to shop at different
retailers than last year
Preparation for holiday shopping | Current as of October 2021
17
13
9
More value for money
Safety
Check more things
off my list at once
78
33
29
21
20
15
Shop more at local/independent stores
Any change of shopping behavior3
Shop at a different place
Shop more online
Shop more in person
Shop earlier
1. Q: Please select all the ways you anticipate your holiday shopping might be different from last year. Figures may not sum to 100% because of rounding.
2. Excludes respondents indicating they will not shop for the holidays this year.
3. Percent of respondents who chose at least 1 behavior that will change.
Anticipated different holiday shopping behaviors1
% of respondents2
Reasons given for changing place to shop during
holiday season
% of respondents3
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years

McKinsey & Company 35
High-income consumers expect to increase both online and in-
person shopping; millennials shop earlier, and Gen X going online
Preparation for holiday shopping | Current as of October 2021
29
20
21
Shop more in person
Shop earlier
Shop more online
Income cut
Gen Z
Millen-
nials Gen X
Baby
boom-
ers3
Shopping behaviors
Between −3 and 3
< −3 >3
Difference from all respondents, percentage points
Anticipated changes in shopping behavior for holiday
2021,1 % of respondents2
Generational cut
30 35
30 23
23 27 20 12
24 22 19 21
28 29 32
22 20 15
14 24 25
Medium
(€25k-
50k)
Low
(<€25k)
High
(>€50k)
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years
1. Q: Please select all the ways you anticipate your holiday shopping might be different compared to last year. Figures may not sum to 100% because of rounding.
2. Percent of respondents indicating they would be shopping differently for the holidays this year vs 2020 (78% of Italian consumers).
3. Baby boomers includes silent generation.

McKinsey & Company 36
Value, availability, and convenience drive decisions on where to
shop; older consumers overindex on price, Gen Z on purpose
Preparation for holiday shopping | Current as of October 2021
47
18
22
19
12
28
21
25
23
13
5
11
Ability to purchase most gifts from one place
Better prices, promotions
Convenience
Ability to see products in person
Better shipping, delivery costs
Easy to shop across store and online
Product availability
Offers unique items
Better quality
Supporting local businesses
Company treating its employees well
Cleaner/better hygiene measures
Generational cut
14
54
13
19
29
21
3
12
21
23
10
Gen Z
13
42
18
21
24
19
10
12
25
36
16
13
Millennials
10
41
22
30
25
21
5
9
26
25
15
15
Gen X
13
46
21
19
30
21
6
11
24
25
13
16
Baby
boomers2
28
1. Q: Please tell us what your primary considerations will be when deciding where to shop. Please select up to 3.
2. Baby boomers include traditional or silent generation.
Between −3 and 3
< −3 >3
Primary considerations when deciding where to shop1
% of respondents
Convenience
Value
Availability
Uniqueness
Purpose-driven
Health/hygiene
Quality
47
56
x Net % of respondents per category
44
25
23
17
11
Difference from all respondents, percentage points
Source: McKinsey & Company COVID-19 Italy Consumer Pulse Survey, 10/15–10/20/2021, n = 1,014, sampled to match Italy general population 18+ years