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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.
McKinsey & Company 2
Three emerging consumer themes in June 2022
Rising prices and invasion of
Ukraine dominating concerns;
optimism in economy stagnating
Sharply rising prices on essentials,
with noticeable consequences for
spending priorities
Noticeable activity, demand, and
channel and brand shifts in search
for value for money
1 2 3
How do consumers feel? What do consumers
observe?
How are consumers reacting?
Rising prices and the invasion of Ukraine are by
far the strongest concerns of German consumers.
Climate change ranks third; COVID-19 is now fourth
Rising prices are particularly worrying for low-
income consumers, while unemployment and
job security are now a concern for about a quarter
of young consumers (Gen Z and millennials)
Pessimism about economic recovery has
decreased very slightly since April but is as high
as during the direst COVID-19 period and much
higher than in October 2021
A vast majority of respondents have observed
price increases, especially for groceries/essentials
and gasoline
German consumers cut back on savings while
budgets for energy, transport, and
groceries/essentials have strongly increased and
are expected to rise further
Especially in certain discretionary categories,
such as jewelry, accessories, and home and
furniture, spend is reduced
73% of consumers have changed shopping
behavior in response to concerns and pressures
faced in the past 3 months
Trading down is widespread, and almost half of
those having changed their shopping behavior are
testing private labels
There is a massive shift to discounters, with
almost half of consumers who shopped at other
retailers now shopping more at discounters
44% of German consumers plan to splurge in
2022——most in dining, travel, and apparel
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 3
Despite the pandemic’s continuing grip on societies in Europe,
rising prices and the invasion of Ukraine have eclipsed COVID-19 as
top concerns for consumers
Germany UK Italy
France2 Spain
Top source of concern1
% of respondents
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, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
Europe 5
6
4
6 6 6
10
10
10
6
3
5
5
13
14
24 13
10
20
11
48
54
67
42
55
1
4
1
2
2
4
3
4
3
3
4
2
1
2
3
4 2
4
2
2 1
0
5
8
8
15
53
4
3
3
1
1
Unemployment/job security
Invasion of Ukraine
Cost and accessibility of healthcare
Political uncertainty
Extreme weather events/
climate change
COVID-19 pandemic
Brexit
Immigration
Other
Rising prices
McKinsey & Company 4
Rising prices dominate German consumers’ minds, even more than
the invasion of Ukraine; only a third cite COVID-19 as a top concern
82
44
23
19
18
18
2
1
67
43
23
18
1
2
Rising prices
Political uncertainty
Invasion of Ukraine
Immigration
Extreme weather events/climate change
COVID-19 pandemic
Unemployment/job security
Cost/accessibility of healthcare
Brexit
Other
80
60
35
34
15
14
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?
Top sources of concern today
% of respondents
48
10
4
2
2
3
0
1
34
7
2
2
4
1
0
40
24
2
8
4
Among top 3 sources of concern1 Top source of concern2
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
June 2022
Apr 2022
McKinsey & Company 5
Rising prices are dominant concern for low-income and millennial
consumers, invasion of Ukraine for high-income and baby boomer
consumers
9
4
4
10
24
48
Overall
Top source of concern1
% of respondents
1. Q: Which of the following is your top concern today? Figures may not sum to 100%, due to rounding.
12 7 9
3
4
3
4 5
8
9
12
18 26
27
55
50
43
Middle
income
4
Low income High
income
19
9 8 5
4
7
3
2 7
10
11 9
10
16
20 23 32
47 51 50 45
Gen Z Baby
boomers
2
3 5
Gen X
Millennials
Split by generation
Split by income
Other
Rising prices
Invasion of Ukraine
Extreme weather events
COVID-19 pandemic
Immigration
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 6
For Gen Z and millennials, political uncertainty and unemployment
are much more concerning than for older consumers
Top 3 sources of concern1
% of respondents
1. Q: What are the greatest source(s) of concern for you right now? Please select the top 3.
82
60
44
34
23
19
18
18
2
1
Unemployment/job security
COVID-19 pandemic
Invasion of Ukraine
Cost/accessibility of healthcare
Rising prices
Extreme weather events/climate change
Political uncertainty
Immigration
Brexit
Other
High
income
Middle
income
Low
income
Gen Z Millennials Gen X Baby
boomers
84
52
39
43
20
22
16
19
3
2
83
64
43
29
23
19
19
19
0
1
80
62
49
34
23
16
17
16
3
1
72
44
43
37
18
26
27
29
4
0
80
62
45
30
16
18
22
24
3
0
84
58
41
30
28
20
18
18
1
2
85
67
48
39
25
16
10
8
1
2
Split by generation
Split by income
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 7
Almost two out of three consumers—and significantly more in the
UK—are negative about their own country’s current economic state
Confidence in own country’s current economic state1
% of respondents
47
56
69
59 60
40
31
20
30 27
14 13 10 11 13
Germany UK Italy
France Spain
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%, due to rounding.
2. Calculated by subtracting all "negative" answers from all "positive" answers.
Net confidence2 −33 −47
−48
−42 −59
58
29
12
Positive
Neutral
Negative
Europe 5
−46
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
McKinsey & Company 8
Low-income and Gen X respondents have the lowest confidence in
Germany’s current state of the economy
46
40
14
Overall
Positive
Neutral
Negative
Confidence in own country’s current economic state1
% of respondents
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%, due to rounding.
2. Baby boomers includes silent generation.
50 47 45
42 38 40
15 16
8
Low (<€25K) Middle
(€25K–50K)
High (>€50K)
40 43 55 45
41 39
34 44
19 17
Gen Z Baby boomers2
11
Millennials Gen X
11
By income
By generation
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 9
German consumers who are concerned about price increases are
the most pessimistic on the current economy
50 44 39
39
42 47
11 13 14
Rising prices Invasion
of Ukraine
Extreme
weather events
Confidence in own country’s current economic state1
% of respondents overall and by top concerns
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%, due to rounding.
2. Calculated by subtracting all "negative/very negative" answers from all "positive/very positive" answers.
Net confidence2 −39 −31 −25
46
40
14
Overall
Positive
Neutral
Negative
−32
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 10
Supply-related risks are the greatest worries of consumers with a
negative outlook on the current economy
Germany UK Italy
France Spain
Top 3 reasons for negative view on economy1
% of respondents who indicated a negative view of the economy’s current status and/or outlook
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%, due to rounding. Bars only show reasons with agreement >20%.
48
43
37
31
27
26
24
15
10
8
3
0
Interruption of gasoline
Unemployment rates
Food shortages
Supply chain shortages
Energy shortages
Uncertainty on the stock market
Rising interest rates
Risk of further escalation of the war
Impact of influx of refugees
Risk of nuclear disaster
Restrictions on international travel
Other
43
52
45
27
18
20
28
24
8
10
2
0
47
41
31
41
23
17
25
15
11
8
3
0
52
43
42
39
33
18
23
10
7
9
3
1
48
39
37
21
28
38
22
17
10
7
3
0
51
44
28
27
29
36
23
10
11
8
3
1
Europe 5
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
McKinsey & Company 11
15 13 17 16 17 18 17 14
21
33 30
59 64
62 63 66 59 59
49
52
52
53
26 24 22 21 17
23 24
37
27
14 17
June 20223
Mar 2020 Feb 2021
Sept 2020
Apr 2020 Nov 2020
May 2020 Oct 2021 Mar 2022 Apr 20223
June 2020
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
Overall pessimism about economic recovery has slightly decreased
but is still much higher than before the invasion of Ukraine
Confidence in own country’s economic recovery after crisis,1 % of respondents
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 two
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 and June 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?
Source: McKinsey & Company COVID-19 Germany Consumer Pulse Survey, 6/8-6/12/2022, n = 1,007; 4/12–4/18/2022, n = 1,028; 3/22–3/29/2022, n = 1,005; 10/15–10/22/2021, n = 1,025; 2/23–2/27/2021, n = 1,013; 11/09–
11/16/2020, n = 1,053; 9/24–9/27/2020, n = 1,053; 6/18–6/21/2020, n = 1,011; 5/21–5/24/2020, n = 1,008; 4/30–5/3/2020, n = 1,002; 4/16–4/19/2020, n = 1,005; 4/2–4/5/2020, n = 1,010; 3/26–3/29/2020, n = 1,002; 3/20–3/22/2020, n
= 1,014, 04/14–04/18/2022, n = 1,028, sampled to match Germany’s general population 18+ years
McKinsey & Company 12
Confidence in own country’s economic recovery after current crisis,1 2022
% of respondents
29 33
41 38 40
53
53
47 51 45
17 14 11 11 15
Pessimism about economic recovery is high across countries and
remains stable since April 2022
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%, due to rounding.
Change in % pessimistic vs Apr 2022 survey,
percentage points
Change in % optimistic vs Apr 2022 survey,
percentage points
UK
+6
−5
Italy
0
−1
Spain
−2
+1
Germany
−4
+3
France
−2
0
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
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
McKinsey & Company 13
Low-income and elder consumers have the lowest confidence in
their country’s future economic recovery
30
53
17
Overall
Pessimistic
Neutral
Optimistic
Confidence in own country’s expected economic recovery after current crisis1
% of respondents
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%, due to rounding.
2. Baby boomers includes silent generation.
36 29 27
51 55 53
13 16 20
Low (<€25K) High (>€50K)
Middle
(€25K–50K)
19 28 35 30
52
49
52 58
29 23 13
Gen X
Gen Z
12
Millennials Baby boomers2
By income
By generation
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 14
Three emerging consumer themes in June 2022
Rising prices and invasion of
Ukraine dominating concerns;
optimism in economy stagnating
Sharply rising prices on essentials,
with noticeable consequences for
spending priorities
Noticeable activity, demand, and
channel and brand shifts in search
for value for money
1 2 3
How do consumers feel? What do consumers
observe?
How are consumers reacting?
Rising prices and the invasion of Ukraine are by
far the strongest concerns of German consumers.
Climate change ranks third; COVID-19 is now fourth
Rising prices are particularly worrying for low-
income consumers, while unemployment and
job security are now a concern for about a quarter
of young consumers (Gen Z and millennials)
Pessimism about economic recovery has
decreased very slightly since April but is as high
as during the direst COVID-19 period and much
higher than in October 2021
A vast majority of respondents have observed
price increases, especially for groceries/essentials
and gasoline
German consumers cut back on savings while
budgets for energy, transport, and
groceries/essentials have strongly increased and
are expected to rise further
Especially in certain discretionary categories,
such as jewelry, accessories, and home and
furniture, spend is reduced
73% of consumers have changed shopping
behavior in response to concerns and pressures
faced in the past 3 months
Trading down is widespread, and almost half of
those having changed their shopping behavior are
testing private labels
There is a massive shift to discounters, with
almost half of consumers who shopped at other
retailers now shopping more at discounters
44% of German consumers plan to splurge in
2022——most in dining, travel, and apparel
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 15
Across countries surveyed, more than 90 percent of respondents
observed price changes
Germany UK Italy
France Spain
1. Q: In the last 3 months, have you seen a general change in the prices of any goods you commonly buy?
Price changes perceived in last 3 months1
% of respondents
Year-over-year inflation,
May 2022, %
8.7 5.8 9.1 7.3 8.5
96
4 9
91
9
91
7
93 96
4
7
93
No
Yes
Europe 5
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years;
inflation data from Eurostat
McKinsey & Company 16
A majority of respondents perceive price increases across
categories; almost all see increases in groceries, fuel, energy, and
eating out
1. Q: In the last 3 months, have you seen a general increase in the prices of any goods you commonly buy?
2. Q: In the last 3 months, how have you observed prices changing across the following categories? Rated from 1 "Prices decreased" to 5 "Prices increased significantly."
3. Calculated by subtracting all "decreased" answers from all "increased/significantly increased" answers.
Not sure
Decreased
Stayed the same Increased significantly
Increased
Price changes perceived in last 3 months
General price change1
% of respondents
Price change by category2
% of respondents who shopped category
4
96
Yes
No
Net change3
95
84
69
62
57
87
93
42
39
1
1
1
2
2
2
1
1
3
3
6
23
19
28
6
2
45
21
24
38
49
39
41
20
8
25
24
72
47
21
25
18
69
87
18
18
7
5
16
12
3
2
11
34
1
Groceries and food for the home
Eating out (eg, in a restaurant, bar)
Cleaning and personal care (eg, laundry, soap, shampoo)
Nonfood products (eg, electronics, appliances, furniture)
Apparel and footwear
Energy (heating, electricity) for the home
Gasoline
Rent
Interest rates (eg, for mortgages, consumer loans)
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 17
Millennials see the strongest effect of price increases on their
current lifestyle
68
66
48
33
11
68
62
44
29
9
​I am concerned that the prices of
everyday ​purchases have been increasing
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
I intend to use more “buy now, pay later”
services in the coming months
57 68 71 71
53 70 65 68
41 38 28 30
47 52 45 49
19 13 8
Statements Millennials Gen X
Gen Z
Baby
boomers3
Generational cut
Agreement with price-related statements
% of respondents rating agreement as 5 or 6 on 6-point scale
Between −3 and +3
< −3 > +3
Difference vs all consumers2
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 split by generation.
3. Baby boomers includes silent generation.
All consumers
8
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
Apr 2022
June 2022
McKinsey & Company 18
German consumers struggle with increased household budgets on
energy, transport, and food/essentials, reducing their savings
1. Q: How have your household finances been affected over the past 3 months? 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
3 months” 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 3 months? 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 3 months” 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.
Change of spend and expected spend in general categories
% of respondents
9 9
17 11
30 31
69
32
23
23
37
52
21
59 60 66
33
17
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Net change3
12 3
54
50 43 −14 17 7
50
50 38 −14
About the same
Higher Lower
8 10
17 13
30 32
67
30
27
25
34
51
25
60 55
62
36
18
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Change in spend in the last 3 months1 Expected change in spend in the next 3 months2
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
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 3 months? 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
3 months” 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 3 months? 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 3 months" refers to the plan consumers make today, so this change is incremental to past change.
3. Calculated by adding the highlighted cells, ie, increased past spend or expect to increase future spend, excluding consumers who have decreased or expect to decrease their spend.
Change of spend in general categories in last 3 months1 and expected
in next 3 months,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 3 months, %
Change
in spend
in last
3 months,
%
Germany UK Italy
France
Europe 5
30 21 32 17 26
Rent/mortgage 25
67 51 75 65 58
Energy/utilities 63
61 52 61 59 57
Transport and gasoline 58
70 47 63 51 59
Food and essentials 58
39 26 27 28 33
Nonfood discretionary 31
21 10 10 9 12
Put money into savings 13
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
Spain
Observed/expected price
increase,³ %
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
McKinsey & Company 20
Spending on food and gasoline increased sharply and is expected to
grow further; strongest spend reduction for jewelry and accessories
8
15
29
28
33
32
28
29
44
36
21
12
9
20
35
29
24
32
61
32
32
19
25
35
13
17
14
14
21
21
20
15
15
15
22
17
Food takeout and delivery
Alcohol
Personal-care products
Groceries
Tobacco products
Quick-service restaurant
Apparel
Restaurant
Footwear
Jewelry
Toys and baby supplies
Accessories
Household supplies
Skin care and makeup
Home and furniture
Sports and outdoors
Home improvement, garden
Kitchen and dining
Decrease Increase
Stay the same
7
19
11
26
28
34
22
19
22
10
15
35
21
29
29
26
28
31
31
17
12
11
15
20
20
17
24
74
38
21
43
24
27
30
26
30
Entertainment at home
Out-of-home entertainment
Gasoline
Pet food and supplies
Consumer electronics
Vitamins and OTC medicine
Fitness and wellness
Books/magazines/newspapers
Pet care services
Personal-care services
Vehicles
Short-term home rentals
Travel by car
Cruises
Adventures and tours
International flights
Hotel/resort stays
Domestic flights
1
−15
−12
−14
−2
−2
2
63
−14
22
−5
−2
4
−2
−2
22
42
7
−10
−13
−17
−4
−20
−12
−35
−28
−5
3
9
−6
−26
−19
−13
−22
Net change
expected,3 next
3 months
25 19
−7
−8
−21
−21
−14
−2
−6
−6
48
10
−1
15
−11
2
9
0
−1 −9
Net change3
−30
53
0
9
−20
17
3
−9
−8
3
−15
−12
−23
11
−5
−14
−1
−15
Change of spend in categories in last 3 months1 and expected in next 3 months2
% of respondents who shopped category
Change, last 3
months
Net change
expected,3
next 3
months
Net change3
Change, last 3
months
1. Q: In the past 3 months, how has the amount you have spent on these categories changed? Choices include “Spent less on this category,” “Spent the same amount,” “Spent more on this category.”
2. Q: Over the next 3 months, do you expect that you will spend more, about the same, or less money on these categories than usual?
3. Net change is calculated by subtracting the % of respondents stating they decreased (or expect to decrease) spend from the % of respondents stating they increased (or expect to increase) spend in the category.
Net change > +15
Net change −15 to +15
Net change < −15
xx xx xx
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 21
Over half of German consumers are more conscious about their
home energy usage; Gen Z consumers made the most changes in
purchase behavior in the last three months
Change in purchase behavior in last 3 months1
% of respondents
1. Q: In which other areas of your life, if any, have you changed your shopping behavior in the last 3 months?
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
3. Baby boomers includes silent generation.
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
59
22
20
16
14
13
11
9
6
6
6
5
3
16
I have purchased supplies to donate to the Ukraine humanitarian
effort and/or have donated money or time to volunteer
I have reduced/stopped purchasing products from Russian companies
I have changed my mode of transport to use less gasoline/to save money
I have become more conscious about my home energy usage
I have sped up my plan to purchase a new home
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 delayed/canceled a pending trip/vacation
I have delayed/canceled a planned purchase of a car/other vehicle
I have reduced/stopped purchasing products from companies
that have not taken a stance on the invasion of Ukraine
I have 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 offered to shelter/sponsor Ukrainian refugees
None of these
Generational cut
Millennials Gen X
Gen Z
Baby
boomers3
27 27 24 14
47 57 63 62
21 14 15 17
17 9 4 2
10 6 4 3
17 17 15 5
7 7 5 5
19 16 10 14
17 9 7 9
8 7 6 6
12 21 21 22
17 12 10 8
10 6 2 0
9 12 18 22
All consumers
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 22
Three emerging consumer themes in June 2022
Rising prices and invasion of
Ukraine dominating concerns;
optimism in economy stagnating
Sharply rising prices on essentials,
with noticeable consequences for
spending priorities
Noticeable activity, demand, and
channel and brand shifts in search
for value for money
1 2 3
How do consumers feel? What do consumers
observe?
How are consumers reacting?
Rising prices and the invasion of Ukraine are by
far the strongest concerns of German consumers.
Climate change ranks third; COVID-19 is now fourth
Rising prices are particularly worrying for low-
income consumers, while unemployment and
job security are now a concern for about a quarter
of young consumers (Gen Z and millennials)
Pessimism about economic recovery has
decreased very slightly since April but is as high
as during the direst COVID-19 period and much
higher than in October 2021
A vast majority of respondents have observed
price increases, especially for groceries/essentials
and gasoline
German consumers cut back on savings while
budgets for energy, transport, and
groceries/essentials have strongly increased and
are expected to rise further
Especially in certain discretionary categories,
such as jewelry, accessories, and home and
furniture, spend is reduced
73% of consumers have changed shopping
behavior in response to concerns and pressures
faced in the past 3 months
Trading down is widespread, and almost half of
those having changed their shopping behavior are
testing private labels
There is a massive shift to discounters, with
almost half of consumers who shopped at other
retailers now shopping more at discounters
44% of German consumers plan to splurge in
2022——most in dining, travel, and apparel
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 23
v
Two-thirds of consumers changed shopping behavior; a plurality of
them have tried or plan to try private label
73
46
28
25
14
12
11
10
9
Shop from a different retailer/store than normal
Try a private-label brand
Shop from a different website than normal
Switch to a different brand than normal
Switch from a brick-and-mortar store to online
Try a new digital shopping method (eg, order
groceries via app)
Switch from online to a brick-and-mortar store
Use a new shopping method (eg, pickup and
food delivery subscription)
Activities in last 3 months1
% of respondents
Plans to do activities in next 3 months2
% of respondents who did not do activity in
the last 3 months
1. Q: In the last 3 months, 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 3 months when purchasing groceries and other essentials (eg, toiletries, cleaning products)? Rated from 1 "Not likely at all" to 6 "Extremely likely." Here, the answers
"Extremely likely" and "Likely" are shown in an aggregated view.
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.
Activities when shopping for groceries or essentials
40
25
17
15
7
11
10
10
14
Activities
95% of consumers noticed a price increase
when shopping for groceries
Total: Any new shopping behavior3
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 24
73
46
28
25
14
12
11
10
9
Switch to a different brand than normal
Try a private-label brand
Total: Any new shopping behavior3
Shop from a different retailer/store than normal
​Switch from a brick-and-mortar store to online
Try a new digital shopping method (eg,
ordered groceries via app)
Use a new shopping method (eg, pickup
and food delivery subscription)
Shop from a different website than normal
​Switch from online to a brick-and-mortar store
For groceries and essentials, Gen Z and millennials were much more
likely than older consumers to explore new shopping behaviors
Generational cut
All consumers
Between −3 and +3
< −3 > +3
1. Q: In the last 3 months, 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 one of the other categories mentioned.
Activities when shopping for groceries and
essentials in the last 3 months1
% of respondents
Difference vs all consumers2
percentage points
Gen Z Millennials Gen X Baby boomers
21 19 11 3
19 14 7 2
21 15 5 4
26 14 8 5
90
45
43
49
21
86
51
36
32
17
74
49
28
26
14
54
38
15
13
8
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 25
Many consumers increased their purchases in discounters; many
shopped less in convenience and specialty stores and hypermarkets
Amount of shopping by retail format in past 3 months1
% of respondents who shopped at a different retailer/store than normal in last 3 months
Retail format
5
3
23
22
32
11
34
31
36
36
38
45
36
33
26
46
18
11
8
6
Supermarket
Discounter
Specialty grocery store
Hypermarket
Convenience store
Did not shop there Shopped less Shopped more
Shopped same amount
1. Q: You mentioned that in the last 3 months 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.
25% of consumers changed their
retailer/store in the last 3 months
Net change2
−20
−16
35
−28
−30
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 26
Consumers across countries shifting to shopping at discounter retail
formats, with Germany and the United Kingdom leading the way
Germany UK Italy
France Spain
25
-11
-22
-24
-27
Specialty grocery store
Convenience store
Discounter
Supermarket
Hypermarket
Net change
Channels All consumers
Between −3 and +3
< −3 > +3
Difference vs all consumers,2 percentage points
41 18
41 22 45
−13 −6
−16 −16 43
-34 −16
27 -24 24
20
35 30
-8
−34
0 25 −31
20
30
−8
−30 −23
−28 37 -20
-21 32
−21 −20
−26 −16
-20 −24 −25
26
−20
−30 −24
Net change in shopping by retail formats, past 3 months1
% of respondents who shopped at a different retailer/store than normal
27% of consumers changed their retailer/store in the last 3 months
1. Q: You mentioned that in the last 3 months 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? Net change calculated by subtracting all "shopped less" answers from all "shopped more" answers.
2. Difference calculated by subtracting the answers of all consumers from those in a subgroup—here split per country.
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
McKinsey & Company 27
Consumers’ top reasons for moving to a new retailer are prices/
promotions and value for money, particularly in the United
Kingdom and Italy
1. Q: You mentioned you shopped from a different retailer/store in the past 3 months when purchasing groceries and other essentials (eg, toiletries, cleaning products). What were the main reasons you decided to
try this new retailer/store? Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here split per country.
All consumers
Top reasons for choice of new retailer/store for groceries/essentials1
% of respondents who shopped at a different retailer/store than normal in last 3 months
46
46
20
20
16
15
13
13
10
10
8
8
8
6
6
6
6
3
Cleaner/has better hygiene measures
Better prices/promotions
More easily accessible from my home
Better value for money
I wanted to save on the cost of gasoline
Wanted to treat myself
Better quality
​Family/friend recommendations
Supporting local businesses
​Products are in stock
​Less crowded/has shorter lines
Wanted variety/a change from normal
​One-stop shop
​Offers natural/organic offerings
Shares my values
The company treats its employees well
More sustainable/environmentally friendly
Their response to the invasion of Ukraine
Between −2 and +2
< −2 > +2
Difference vs Europe 5,2
percentage points
27% of consumers changed their
retailer/store in the last 3 months
45
41
17
20
19
13
22
13
9
10
14
4
8
6
8
2
8
4
Germany
50
62
15
13
13
9
16
11
10
9
8
3
6
4
4
2
4
5
UK
51
44
23
20
18
15
8
11
8
10
8
13
5
8
6
3
5
5
Italy
41
38
22
22
12
13
13
12
11
9
5
7
12
7
5
6
10
7
France
40
35
24
25
17
23
8
17
12
10
5
12
9
8
7
3
6
9
Spain
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
McKinsey & Company 28
Across generations, better prices/promotions and better value for
money consistently are key reasons for switching retailers;
response to invasion of Ukraine is the least important driver
1. Q: You mentioned you shopped from a different retailer/store in the past 3 months when purchasing groceries and other essentials (eg, toiletries, cleaning products). What were the main reasons you decided to try this new retailer/store?
Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational split.
Top reasons for choice of new retailer/store for groceries/essentials1
% of respondents who shopped from a different retailer/store than normal in last 3 months
45
41
22
20
19
17
14
13
13
10
9
8
8
8
6
4
4
2
​Less crowded/has shorter lines
More easily accessible from my home
Better prices/promotions
Supporting local businesses
Better value for money
​Offers natural/organic offerings
​One-stop shop
​Products are in stock
I wanted to save on the cost of gasoline
Better quality
​Family/friend recommendations
Wanted variety/a change from normal
Wanted to treat myself
Shares my values
Their response to the invasion of Ukraine
More sustainable/environmentally friendly
Cleaner/has better hygiene measures
The company treats its employees well
Between −2 and +2
< −2 > +2
Difference vs all consumers2
percentage points
16
51
40
5
14
13
7
26
13
2
9
8
9
14
1
16
4
11
Millennials
14
45
38
7
21
9
12
17
12
4
9
9
8
11
1
20
3
13
Gen X
22
37
45
2
16
12
6
24
16
6
8
4
12
6
5
16
14
20
Gen Z
14
42
42
2
33
23
9
19
19
7
5
9
2
7
2
23
7
7
Baby
boomers
All consumers
25% of consumers changed their
retailer/store in the last 3 months
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 29
Trading down is particularly evident in household products, frozen
foods, and snacks and confectionary
24
31
32
32
36
38
38
42
40
38
56
4
4
4
6
6
4
5
4
7
10
4
72
64
64
61
58
58
57
54
53
53
40
​Healthcare, beauty, baby
Non-alcoholic beverages
​Bread and bakery
Frozen foods
Household products
​Snacks and confectionary
​Dairy and eggs
Hot drinks
​Fresh fruit and vegetables
Fresh meat, fish, poultry
Alcohol
No change Switched to higher-priced brand Switched to lower-cost or private-label brand
1. Q: You mentioned that in the last 3 months you tried a different brand than you normally would when purchasing groceries and other essentials. Which of the following best describes how/where you switched brands?
2. Calculated by subtracting the answers for "switched to higher-priced brand" and "no change“ from "switched to lower-cost or private-label brand."
Brand-switching behavior of consumers1
% of respondents who switched to a different brand for
groceries or essentials in last 3 months
Net trade-down2
44
29
27
23
16
16
13
7
6
5
−20
57% of consumers changed a
groceries/essentials brand in the last 3 months
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 30
Consumers across countries are switching brands for groceries and
essentials; German consumers are switching for bread and bakery
Non-alcoholic beverages
Fresh meat, fish, poultry
​Snacks and confectionary
Household products
Frozen foods
45
​Dairy and eggs
7
​Fresh fruit and vegetables
Hot drinks
​Bread and bakery
​Healthcare, beauty, baby
Alcohol
30
29
19
17
12
6
3
2
−10
Germany UK Italy
France Spain
16
44
5
13
23
27
29
16
7
6
−20
14
7
25
−20
34
−5
17
−2
−17
−2
−1
13
43
56
38
28
24
32
13
19
17
−9
4
49
37
38
29
0
5
11
15
8
6
23
25
19
44
21
0
18
1
−11
−14
−6
1. Q: You mentioned that in the last 3 months you tried a different brand than you normally would when purchasing groceries and other essentials. Which of the following best describes how/where you switched brands?
2. Calculated by subtracting the answers for "switched to higher-priced brand" and "no change“ from "switched to lower-cost or private-label brand."
Net trade-down2
Brand-switching behavior of consumers1
% of respondents who switched to a different brand for groceries or essentials in last 3 months
56% of consumers changed a
groceries/essentials brand in the last 3 months
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
McKinsey & Company 31
Across generations, better prices/promotions and better value for
money consistently are key reasons for switching brands; ethical
reasons are least important in this time of budget pressure
1. Q: You mentioned you tried a new/different brand than what you normally buy in the last 3 months when purchasing groceries and other essentials (eg,
toiletries, cleaning products). What were the main reasons that drove this decision? Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational split.
Top reasons for choice of new brand for groceries/essentials1
% of respondents who bought a different brand than normal in last 3 months
Between −2 and +2
< −2 > +2
Difference vs all
consumers2
percentage points
All consumers
50
50
19
16
14
10
10
10
9
9
7
7
7
6
5
5
3
3
Better quality
Their response to the invasion of Ukraine
Better prices/promotions
Better value for money
Available where I’m shopping
​Products are in stock
Larger package sizes
More sustainable/environmentally friendly
Wanted to try a new brand I found
Supporting local businesses
Wanted variety/a change from normal
Wanted to treat myself
Wanted to try new type of product
Is natural/organic
Better shipping/delivery cost
Cleaner/safer
The company treats its employees well
Shares my values 4
7 2 1
9
22
18 17
58
48
44 45
60
48
25 52
8
14 3 0
22
11 19 18
6
7 10 11
7
14 5 5
11
9 15 17
1
9 3 3
7
16 11 5
13
9 9 7
3
9 3 8
10
7 4 8
6
5 6 11
9
20 8 8
7
20 3 3
10
18 10 8
Millennials Gen X
Gen Z
Baby
boomers
57% of consumers changed a groceries/
essentials brand in the last 3 months
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 32
When observing price increases, more than half of consumers
change behavior; about 20 percent say they delay the purchase
Perception of price
increase and action taken
by consumers by category
1. Q: In the last 3 months, 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 3 months, have you done any of the following when purchasing [product]? 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.
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
95
89
85
64
59
Apparel and footwear
Eating out
Gasoline
Energy for the home
Nonfood products
29
37
29
27
25
21
8
18
23
23
5
7
8
13
12
2
2
5
5
3
16
8
15
26
24
3
4
7
13
12
4
7
7
9
3
24
5
19
20
20
Consumer-observed price
increases by category1
% of respondents rating increase 4 or 5 on
5-point scale
Changed behavior when price increase perceived2
% of respondents reacting to perceived price increase
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 33
Across categories, majorities of European consumers switching
brands are moving to private labels
Type of brand selected (private label or not)2
% of respondents choosing a different or lower-cost brand as reaction to a perceived
price increase
Switch to lower-cost or different brand
% of respondents reacting to a perceived
price increase
81
71
79
71
50
19
29
21
29
50
1. Q: In the last 3 months, have you done any of the following when purchasing [product]? 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, none of these.
2. Q: You mentioned that you switched to a different brand when purchasing [product]. Was this a private-label brand (eg, supermarket brand)?
Consumers switching brands by product category1
% of respondents who perceived a price increase in category and switched to a different or lower-cost brand in the last 3 months
41
38
28
21
17
Apparel and footwear
Energy for the home
Nonfood products
Eating out
Gasoline
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
Private-label brand Non-private-label brand
Germany UK Italy
France Spain
McKinsey & Company 34
Consumers across countries are less brand-loyal for nonfood
products and for apparel and footwear, more brand-loyal for fuel
and energy
41
38
28
21
17
Eating out (eg, in a restaurant, bar)
Nonfood products (eg, electronics, appliances, furniture)
Apparel and footwear
Fuel (eg, gasoline, diesel)
Energy (heating, electricity) for the home
Switch to lower-cost or different brand1
% of respondents reacting to perceived price increase
Between −3 and +3
< −3 > +3
Difference from Europe 5,2 percentage points
1. Q: In the last 3 months, have you done any of the following when purchasing [product]? Data are for respondents who answered they switched to a different or lower-cost brand.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here split per country.
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
Europe 5 Germany UK Italy
France Spain
40
34
35
27
22
39
37
24
21
15
36
41
28
25
18
45
39
28
14
12
45
40
26
20
17
McKinsey & Company 35
38
27
58
50
38
23
41
31
39
27
53
47
42
19
Reasons for choosing a product/brand in the past 3 months1
% of respondents rating reason as 1 or 2 (unimportant) and 5 or 6 (important) on 6-point scale
Trying out a new brand is strongly driven by ‘rational’ reasons,
though trust and no artificial ingredients are also very important;
ethical reasons related to invasion in Ukraine least important
Rational
Beliefs
Sustainability 9
10
12
15
14
14
10
5
4
6
8
26
30
33
No artificial ingredients/natural/GMO-free
Recyclable products, packaging, or initiatives
Small or neutral carbon footprint
Sustainably sourced materials
Fair trade practices
Brand known for good animal welfare
Locally sourced/locally owned
Lower price
Available in the store closest to me
Brand that I know and trust
Brand actively supporting the humanitarian effort in Ukraine
Brand that has stopped doing business in Russia
Brand that has made public statements in support of Ukraine
41
31
26
23
17
13
29
54
41
34
−3
49
Brand that treats employees well
−14
−3
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
Unimportant Important
Net
importance2
1. Q: In the last 3 months, 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.
McKinsey & Company 36
Reason for trying a new brand in the past 3 months1
Net importance rating2
1. Q: In the last 3 months, 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.
Consumers in Germany, Italy, and Spain place more value on
sustainability; those in Spain also value a clear position on Ukraine
29
29
21
17
10
2
28
54
46
41
32
-1
-2
-12
No artificial ingredients/natural/GMO free
Locally sourced / locally owned
Small or neutral carbon footprint
Brand known for good animal welfare
Recyclable products, packaging, or initiatives
Sustainably sourced materials
Fair trade practices
Lower price
Available in the store closest to me
Brand that I know and trust
Brand that treats employees well
Brand is actively supporting the humanitarian effort in Ukraine
Brand has stopped doing business in Russia
Brand has made public statements in support of Ukraine
41
31
26
23
17
13
29
54
49
41
34
-3
-3
-14
25
16
10
7
-2
-14
23
40
38
33
23
-17
-16
-23
10
28
16
11
-1
-1
9
67
53
40
28
3
6
-13
31
29
19
14
13
-3
34
43
35
38
31
-3
-8
-11
38
43
35
32
24
15
44
64
55
52
46
16
11
3
Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
Europe 5 Germany France UK Italy Spain
Rational
Beliefs
Sustain-
ability
McKinsey & Company 37
Majority of Gen Z and millennials still plan to splurge or treat
themselves in 2022
1. Q: With regard to products and services you will spend money on, do you plan to splurge/treat yourself in the next 6 months? 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.
56
44
42
Yes
58
Oct 2021
Feb 2021
37
63
June 2022
No
Respondents who plan/do not plan to splurge/treat themselves in 20221
% of respondents
48
57
66
58
52
43
34
Baby boomers2
42
Millennials
Gen Z Gen X
Generational cut, June 2022
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
McKinsey & Company 38
Splurging most often planned for restaurants for older consumers;
apparel more often planned by Gen Z
Optimism and spend intent returning | Current as of October 2021
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.
38
36
34
30
29
26
24
19
17
17
17
16
16
9
Personal services
Restaurants, dining out, bars
Sports apparel and equipment
Apparel, shoes, accessories
International travel for holidays
Domestic travel for holidays
Out-of-home entertainment
Electronics
Household essentials
Fitness
Items for your home
Makeup and skin care products
Outdoor living
Pets
Gen Z
Baby
boomers2
27 44
37 35
44 28
27 37
31 25
21 31
23 21
30 22
29 12
Generational cut
24 9
20 15
19 14
17 13
Change from
Oct 2021,
percentage points
−6
N/A
0
N/A
+1
−2
−1
+6
-4
−5
−5
−1
+7
Categories
20
Millennials
38
34
36
23
34
19
26
13
16
23
20
11
16
6
Gen X
40
38
30
34
24
33
24
16
18
14
14
17
18
9 7
0
Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
Between −3 and +3
< −3 > +3
Difference from all respondents
percentage points
Categories where consumers intend to treat themselves1
% of all respondents with intent to splurge in 2022

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

  • 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 Three emerging consumer themes in June 2022 Rising prices and invasion of Ukraine dominating concerns; optimism in economy stagnating Sharply rising prices on essentials, with noticeable consequences for spending priorities Noticeable activity, demand, and channel and brand shifts in search for value for money 1 2 3 How do consumers feel? What do consumers observe? How are consumers reacting? Rising prices and the invasion of Ukraine are by far the strongest concerns of German consumers. Climate change ranks third; COVID-19 is now fourth Rising prices are particularly worrying for low- income consumers, while unemployment and job security are now a concern for about a quarter of young consumers (Gen Z and millennials) Pessimism about economic recovery has decreased very slightly since April but is as high as during the direst COVID-19 period and much higher than in October 2021 A vast majority of respondents have observed price increases, especially for groceries/essentials and gasoline German consumers cut back on savings while budgets for energy, transport, and groceries/essentials have strongly increased and are expected to rise further Especially in certain discretionary categories, such as jewelry, accessories, and home and furniture, spend is reduced 73% of consumers have changed shopping behavior in response to concerns and pressures faced in the past 3 months Trading down is widespread, and almost half of those having changed their shopping behavior are testing private labels There is a massive shift to discounters, with almost half of consumers who shopped at other retailers now shopping more at discounters 44% of German consumers plan to splurge in 2022——most in dining, travel, and apparel Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 3. McKinsey & Company 3 Despite the pandemic’s continuing grip on societies in Europe, rising prices and the invasion of Ukraine have eclipsed COVID-19 as top concerns for consumers Germany UK Italy France2 Spain Top source of concern1 % of respondents 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, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years Europe 5 6 4 6 6 6 10 10 10 6 3 5 5 13 14 24 13 10 20 11 48 54 67 42 55 1 4 1 2 2 4 3 4 3 3 4 2 1 2 3 4 2 4 2 2 1 0 5 8 8 15 53 4 3 3 1 1 Unemployment/job security Invasion of Ukraine Cost and accessibility of healthcare Political uncertainty Extreme weather events/ climate change COVID-19 pandemic Brexit Immigration Other Rising prices
  • 4. McKinsey & Company 4 Rising prices dominate German consumers’ minds, even more than the invasion of Ukraine; only a third cite COVID-19 as a top concern 82 44 23 19 18 18 2 1 67 43 23 18 1 2 Rising prices Political uncertainty Invasion of Ukraine Immigration Extreme weather events/climate change COVID-19 pandemic Unemployment/job security Cost/accessibility of healthcare Brexit Other 80 60 35 34 15 14 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? Top sources of concern today % of respondents 48 10 4 2 2 3 0 1 34 7 2 2 4 1 0 40 24 2 8 4 Among top 3 sources of concern1 Top source of concern2 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years June 2022 Apr 2022
  • 5. McKinsey & Company 5 Rising prices are dominant concern for low-income and millennial consumers, invasion of Ukraine for high-income and baby boomer consumers 9 4 4 10 24 48 Overall Top source of concern1 % of respondents 1. Q: Which of the following is your top concern today? Figures may not sum to 100%, due to rounding. 12 7 9 3 4 3 4 5 8 9 12 18 26 27 55 50 43 Middle income 4 Low income High income 19 9 8 5 4 7 3 2 7 10 11 9 10 16 20 23 32 47 51 50 45 Gen Z Baby boomers 2 3 5 Gen X Millennials Split by generation Split by income Other Rising prices Invasion of Ukraine Extreme weather events COVID-19 pandemic Immigration Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 6. McKinsey & Company 6 For Gen Z and millennials, political uncertainty and unemployment are much more concerning than for older consumers Top 3 sources of concern1 % of respondents 1. Q: What are the greatest source(s) of concern for you right now? Please select the top 3. 82 60 44 34 23 19 18 18 2 1 Unemployment/job security COVID-19 pandemic Invasion of Ukraine Cost/accessibility of healthcare Rising prices Extreme weather events/climate change Political uncertainty Immigration Brexit Other High income Middle income Low income Gen Z Millennials Gen X Baby boomers 84 52 39 43 20 22 16 19 3 2 83 64 43 29 23 19 19 19 0 1 80 62 49 34 23 16 17 16 3 1 72 44 43 37 18 26 27 29 4 0 80 62 45 30 16 18 22 24 3 0 84 58 41 30 28 20 18 18 1 2 85 67 48 39 25 16 10 8 1 2 Split by generation Split by income Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 7. McKinsey & Company 7 Almost two out of three consumers—and significantly more in the UK—are negative about their own country’s current economic state Confidence in own country’s current economic state1 % of respondents 47 56 69 59 60 40 31 20 30 27 14 13 10 11 13 Germany UK Italy France Spain 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%, due to rounding. 2. Calculated by subtracting all "negative" answers from all "positive" answers. Net confidence2 −33 −47 −48 −42 −59 58 29 12 Positive Neutral Negative Europe 5 −46 Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
  • 8. McKinsey & Company 8 Low-income and Gen X respondents have the lowest confidence in Germany’s current state of the economy 46 40 14 Overall Positive Neutral Negative Confidence in own country’s current economic state1 % of respondents 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%, due to rounding. 2. Baby boomers includes silent generation. 50 47 45 42 38 40 15 16 8 Low (<€25K) Middle (€25K–50K) High (>€50K) 40 43 55 45 41 39 34 44 19 17 Gen Z Baby boomers2 11 Millennials Gen X 11 By income By generation Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 9. McKinsey & Company 9 German consumers who are concerned about price increases are the most pessimistic on the current economy 50 44 39 39 42 47 11 13 14 Rising prices Invasion of Ukraine Extreme weather events Confidence in own country’s current economic state1 % of respondents overall and by top concerns 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%, due to rounding. 2. Calculated by subtracting all "negative/very negative" answers from all "positive/very positive" answers. Net confidence2 −39 −31 −25 46 40 14 Overall Positive Neutral Negative −32 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 10. McKinsey & Company 10 Supply-related risks are the greatest worries of consumers with a negative outlook on the current economy Germany UK Italy France Spain Top 3 reasons for negative view on economy1 % of respondents who indicated a negative view of the economy’s current status and/or outlook 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%, due to rounding. Bars only show reasons with agreement >20%. 48 43 37 31 27 26 24 15 10 8 3 0 Interruption of gasoline Unemployment rates Food shortages Supply chain shortages Energy shortages Uncertainty on the stock market Rising interest rates Risk of further escalation of the war Impact of influx of refugees Risk of nuclear disaster Restrictions on international travel Other 43 52 45 27 18 20 28 24 8 10 2 0 47 41 31 41 23 17 25 15 11 8 3 0 52 43 42 39 33 18 23 10 7 9 3 1 48 39 37 21 28 38 22 17 10 7 3 0 51 44 28 27 29 36 23 10 11 8 3 1 Europe 5 Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
  • 11. McKinsey & Company 11 15 13 17 16 17 18 17 14 21 33 30 59 64 62 63 66 59 59 49 52 52 53 26 24 22 21 17 23 24 37 27 14 17 June 20223 Mar 2020 Feb 2021 Sept 2020 Apr 2020 Nov 2020 May 2020 Oct 2021 Mar 2022 Apr 20223 June 2020 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 Overall pessimism about economic recovery has slightly decreased but is still much higher than before the invasion of Ukraine Confidence in own country’s economic recovery after crisis,1 % of respondents 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 two 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 and June 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? Source: McKinsey & Company COVID-19 Germany Consumer Pulse Survey, 6/8-6/12/2022, n = 1,007; 4/12–4/18/2022, n = 1,028; 3/22–3/29/2022, n = 1,005; 10/15–10/22/2021, n = 1,025; 2/23–2/27/2021, n = 1,013; 11/09– 11/16/2020, n = 1,053; 9/24–9/27/2020, n = 1,053; 6/18–6/21/2020, n = 1,011; 5/21–5/24/2020, n = 1,008; 4/30–5/3/2020, n = 1,002; 4/16–4/19/2020, n = 1,005; 4/2–4/5/2020, n = 1,010; 3/26–3/29/2020, n = 1,002; 3/20–3/22/2020, n = 1,014, 04/14–04/18/2022, n = 1,028, sampled to match Germany’s general population 18+ years
  • 12. McKinsey & Company 12 Confidence in own country’s economic recovery after current crisis,1 2022 % of respondents 29 33 41 38 40 53 53 47 51 45 17 14 11 11 15 Pessimism about economic recovery is high across countries and remains stable since April 2022 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%, due to rounding. Change in % pessimistic vs Apr 2022 survey, percentage points Change in % optimistic vs Apr 2022 survey, percentage points UK +6 −5 Italy 0 −1 Spain −2 +1 Germany −4 +3 France −2 0 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 Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
  • 13. McKinsey & Company 13 Low-income and elder consumers have the lowest confidence in their country’s future economic recovery 30 53 17 Overall Pessimistic Neutral Optimistic Confidence in own country’s expected economic recovery after current crisis1 % of respondents 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%, due to rounding. 2. Baby boomers includes silent generation. 36 29 27 51 55 53 13 16 20 Low (<€25K) High (>€50K) Middle (€25K–50K) 19 28 35 30 52 49 52 58 29 23 13 Gen X Gen Z 12 Millennials Baby boomers2 By income By generation Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 14. McKinsey & Company 14 Three emerging consumer themes in June 2022 Rising prices and invasion of Ukraine dominating concerns; optimism in economy stagnating Sharply rising prices on essentials, with noticeable consequences for spending priorities Noticeable activity, demand, and channel and brand shifts in search for value for money 1 2 3 How do consumers feel? What do consumers observe? How are consumers reacting? Rising prices and the invasion of Ukraine are by far the strongest concerns of German consumers. Climate change ranks third; COVID-19 is now fourth Rising prices are particularly worrying for low- income consumers, while unemployment and job security are now a concern for about a quarter of young consumers (Gen Z and millennials) Pessimism about economic recovery has decreased very slightly since April but is as high as during the direst COVID-19 period and much higher than in October 2021 A vast majority of respondents have observed price increases, especially for groceries/essentials and gasoline German consumers cut back on savings while budgets for energy, transport, and groceries/essentials have strongly increased and are expected to rise further Especially in certain discretionary categories, such as jewelry, accessories, and home and furniture, spend is reduced 73% of consumers have changed shopping behavior in response to concerns and pressures faced in the past 3 months Trading down is widespread, and almost half of those having changed their shopping behavior are testing private labels There is a massive shift to discounters, with almost half of consumers who shopped at other retailers now shopping more at discounters 44% of German consumers plan to splurge in 2022——most in dining, travel, and apparel Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 15. McKinsey & Company 15 Across countries surveyed, more than 90 percent of respondents observed price changes Germany UK Italy France Spain 1. Q: In the last 3 months, have you seen a general change in the prices of any goods you commonly buy? Price changes perceived in last 3 months1 % of respondents Year-over-year inflation, May 2022, % 8.7 5.8 9.1 7.3 8.5 96 4 9 91 9 91 7 93 96 4 7 93 No Yes Europe 5 Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years; inflation data from Eurostat
  • 16. McKinsey & Company 16 A majority of respondents perceive price increases across categories; almost all see increases in groceries, fuel, energy, and eating out 1. Q: In the last 3 months, have you seen a general increase in the prices of any goods you commonly buy? 2. Q: In the last 3 months, how have you observed prices changing across the following categories? Rated from 1 "Prices decreased" to 5 "Prices increased significantly." 3. Calculated by subtracting all "decreased" answers from all "increased/significantly increased" answers. Not sure Decreased Stayed the same Increased significantly Increased Price changes perceived in last 3 months General price change1 % of respondents Price change by category2 % of respondents who shopped category 4 96 Yes No Net change3 95 84 69 62 57 87 93 42 39 1 1 1 2 2 2 1 1 3 3 6 23 19 28 6 2 45 21 24 38 49 39 41 20 8 25 24 72 47 21 25 18 69 87 18 18 7 5 16 12 3 2 11 34 1 Groceries and food for the home Eating out (eg, in a restaurant, bar) Cleaning and personal care (eg, laundry, soap, shampoo) Nonfood products (eg, electronics, appliances, furniture) Apparel and footwear Energy (heating, electricity) for the home Gasoline Rent Interest rates (eg, for mortgages, consumer loans) Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 17. McKinsey & Company 17 Millennials see the strongest effect of price increases on their current lifestyle 68 66 48 33 11 68 62 44 29 9 ​I am concerned that the prices of everyday ​purchases have been increasing 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 I intend to use more “buy now, pay later” services in the coming months 57 68 71 71 53 70 65 68 41 38 28 30 47 52 45 49 19 13 8 Statements Millennials Gen X Gen Z Baby boomers3 Generational cut Agreement with price-related statements % of respondents rating agreement as 5 or 6 on 6-point scale Between −3 and +3 < −3 > +3 Difference vs all consumers2 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 split by generation. 3. Baby boomers includes silent generation. All consumers 8 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years Apr 2022 June 2022
  • 18. McKinsey & Company 18 German consumers struggle with increased household budgets on energy, transport, and food/essentials, reducing their savings 1. Q: How have your household finances been affected over the past 3 months? 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 3 months” 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 3 months? 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 3 months” 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. Change of spend and expected spend in general categories % of respondents 9 9 17 11 30 31 69 32 23 23 37 52 21 59 60 66 33 17 Rent/ mortgage Energy/ utilities Transport and gasoline Food and essentials Nonfood discretionary Put money into savings Net change3 12 3 54 50 43 −14 17 7 50 50 38 −14 About the same Higher Lower 8 10 17 13 30 32 67 30 27 25 34 51 25 60 55 62 36 18 Rent/ mortgage Energy/ utilities Transport and gasoline Food and essentials Nonfood discretionary Put money into savings Change in spend in the last 3 months1 Expected change in spend in the next 3 months2 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 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 3 months? 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 3 months” 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 3 months? 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 3 months" refers to the plan consumers make today, so this change is incremental to past change. 3. Calculated by adding the highlighted cells, ie, increased past spend or expect to increase future spend, excluding consumers who have decreased or expect to decrease their spend. Change of spend in general categories in last 3 months1 and expected in next 3 months,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 3 months, % Change in spend in last 3 months, % Germany UK Italy France Europe 5 30 21 32 17 26 Rent/mortgage 25 67 51 75 65 58 Energy/utilities 63 61 52 61 59 57 Transport and gasoline 58 70 47 63 51 59 Food and essentials 58 39 26 27 28 33 Nonfood discretionary 31 21 10 10 9 12 Put money into savings 13 Between −3 and +3 < −3 > +3 Difference from all consumers,2 percentage points Spain Observed/expected price increase,³ % Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
  • 20. McKinsey & Company 20 Spending on food and gasoline increased sharply and is expected to grow further; strongest spend reduction for jewelry and accessories 8 15 29 28 33 32 28 29 44 36 21 12 9 20 35 29 24 32 61 32 32 19 25 35 13 17 14 14 21 21 20 15 15 15 22 17 Food takeout and delivery Alcohol Personal-care products Groceries Tobacco products Quick-service restaurant Apparel Restaurant Footwear Jewelry Toys and baby supplies Accessories Household supplies Skin care and makeup Home and furniture Sports and outdoors Home improvement, garden Kitchen and dining Decrease Increase Stay the same 7 19 11 26 28 34 22 19 22 10 15 35 21 29 29 26 28 31 31 17 12 11 15 20 20 17 24 74 38 21 43 24 27 30 26 30 Entertainment at home Out-of-home entertainment Gasoline Pet food and supplies Consumer electronics Vitamins and OTC medicine Fitness and wellness Books/magazines/newspapers Pet care services Personal-care services Vehicles Short-term home rentals Travel by car Cruises Adventures and tours International flights Hotel/resort stays Domestic flights 1 −15 −12 −14 −2 −2 2 63 −14 22 −5 −2 4 −2 −2 22 42 7 −10 −13 −17 −4 −20 −12 −35 −28 −5 3 9 −6 −26 −19 −13 −22 Net change expected,3 next 3 months 25 19 −7 −8 −21 −21 −14 −2 −6 −6 48 10 −1 15 −11 2 9 0 −1 −9 Net change3 −30 53 0 9 −20 17 3 −9 −8 3 −15 −12 −23 11 −5 −14 −1 −15 Change of spend in categories in last 3 months1 and expected in next 3 months2 % of respondents who shopped category Change, last 3 months Net change expected,3 next 3 months Net change3 Change, last 3 months 1. Q: In the past 3 months, how has the amount you have spent on these categories changed? Choices include “Spent less on this category,” “Spent the same amount,” “Spent more on this category.” 2. Q: Over the next 3 months, do you expect that you will spend more, about the same, or less money on these categories than usual? 3. Net change is calculated by subtracting the % of respondents stating they decreased (or expect to decrease) spend from the % of respondents stating they increased (or expect to increase) spend in the category. Net change > +15 Net change −15 to +15 Net change < −15 xx xx xx Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 21. McKinsey & Company 21 Over half of German consumers are more conscious about their home energy usage; Gen Z consumers made the most changes in purchase behavior in the last three months Change in purchase behavior in last 3 months1 % of respondents 1. Q: In which other areas of your life, if any, have you changed your shopping behavior in the last 3 months? 2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut. 3. Baby boomers includes silent generation. Between −3 and +3 < −3 > +3 Difference from all consumers,2 percentage points 59 22 20 16 14 13 11 9 6 6 6 5 3 16 I have purchased supplies to donate to the Ukraine humanitarian effort and/or have donated money or time to volunteer I have reduced/stopped purchasing products from Russian companies I have changed my mode of transport to use less gasoline/to save money I have become more conscious about my home energy usage I have sped up my plan to purchase a new home 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 delayed/canceled a pending trip/vacation I have delayed/canceled a planned purchase of a car/other vehicle I have reduced/stopped purchasing products from companies that have not taken a stance on the invasion of Ukraine I have 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 offered to shelter/sponsor Ukrainian refugees None of these Generational cut Millennials Gen X Gen Z Baby boomers3 27 27 24 14 47 57 63 62 21 14 15 17 17 9 4 2 10 6 4 3 17 17 15 5 7 7 5 5 19 16 10 14 17 9 7 9 8 7 6 6 12 21 21 22 17 12 10 8 10 6 2 0 9 12 18 22 All consumers Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 22. McKinsey & Company 22 Three emerging consumer themes in June 2022 Rising prices and invasion of Ukraine dominating concerns; optimism in economy stagnating Sharply rising prices on essentials, with noticeable consequences for spending priorities Noticeable activity, demand, and channel and brand shifts in search for value for money 1 2 3 How do consumers feel? What do consumers observe? How are consumers reacting? Rising prices and the invasion of Ukraine are by far the strongest concerns of German consumers. Climate change ranks third; COVID-19 is now fourth Rising prices are particularly worrying for low- income consumers, while unemployment and job security are now a concern for about a quarter of young consumers (Gen Z and millennials) Pessimism about economic recovery has decreased very slightly since April but is as high as during the direst COVID-19 period and much higher than in October 2021 A vast majority of respondents have observed price increases, especially for groceries/essentials and gasoline German consumers cut back on savings while budgets for energy, transport, and groceries/essentials have strongly increased and are expected to rise further Especially in certain discretionary categories, such as jewelry, accessories, and home and furniture, spend is reduced 73% of consumers have changed shopping behavior in response to concerns and pressures faced in the past 3 months Trading down is widespread, and almost half of those having changed their shopping behavior are testing private labels There is a massive shift to discounters, with almost half of consumers who shopped at other retailers now shopping more at discounters 44% of German consumers plan to splurge in 2022——most in dining, travel, and apparel Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 23. McKinsey & Company 23 v Two-thirds of consumers changed shopping behavior; a plurality of them have tried or plan to try private label 73 46 28 25 14 12 11 10 9 Shop from a different retailer/store than normal Try a private-label brand Shop from a different website than normal Switch to a different brand than normal Switch from a brick-and-mortar store to online Try a new digital shopping method (eg, order groceries via app) Switch from online to a brick-and-mortar store Use a new shopping method (eg, pickup and food delivery subscription) Activities in last 3 months1 % of respondents Plans to do activities in next 3 months2 % of respondents who did not do activity in the last 3 months 1. Q: In the last 3 months, 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 3 months when purchasing groceries and other essentials (eg, toiletries, cleaning products)? Rated from 1 "Not likely at all" to 6 "Extremely likely." Here, the answers "Extremely likely" and "Likely" are shown in an aggregated view. 3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned. Activities when shopping for groceries or essentials 40 25 17 15 7 11 10 10 14 Activities 95% of consumers noticed a price increase when shopping for groceries Total: Any new shopping behavior3 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 24. McKinsey & Company 24 73 46 28 25 14 12 11 10 9 Switch to a different brand than normal Try a private-label brand Total: Any new shopping behavior3 Shop from a different retailer/store than normal ​Switch from a brick-and-mortar store to online Try a new digital shopping method (eg, ordered groceries via app) Use a new shopping method (eg, pickup and food delivery subscription) Shop from a different website than normal ​Switch from online to a brick-and-mortar store For groceries and essentials, Gen Z and millennials were much more likely than older consumers to explore new shopping behaviors Generational cut All consumers Between −3 and +3 < −3 > +3 1. Q: In the last 3 months, 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 one of the other categories mentioned. Activities when shopping for groceries and essentials in the last 3 months1 % of respondents Difference vs all consumers2 percentage points Gen Z Millennials Gen X Baby boomers 21 19 11 3 19 14 7 2 21 15 5 4 26 14 8 5 90 45 43 49 21 86 51 36 32 17 74 49 28 26 14 54 38 15 13 8 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 25. McKinsey & Company 25 Many consumers increased their purchases in discounters; many shopped less in convenience and specialty stores and hypermarkets Amount of shopping by retail format in past 3 months1 % of respondents who shopped at a different retailer/store than normal in last 3 months Retail format 5 3 23 22 32 11 34 31 36 36 38 45 36 33 26 46 18 11 8 6 Supermarket Discounter Specialty grocery store Hypermarket Convenience store Did not shop there Shopped less Shopped more Shopped same amount 1. Q: You mentioned that in the last 3 months 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. 25% of consumers changed their retailer/store in the last 3 months Net change2 −20 −16 35 −28 −30 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 26. McKinsey & Company 26 Consumers across countries shifting to shopping at discounter retail formats, with Germany and the United Kingdom leading the way Germany UK Italy France Spain 25 -11 -22 -24 -27 Specialty grocery store Convenience store Discounter Supermarket Hypermarket Net change Channels All consumers Between −3 and +3 < −3 > +3 Difference vs all consumers,2 percentage points 41 18 41 22 45 −13 −6 −16 −16 43 -34 −16 27 -24 24 20 35 30 -8 −34 0 25 −31 20 30 −8 −30 −23 −28 37 -20 -21 32 −21 −20 −26 −16 -20 −24 −25 26 −20 −30 −24 Net change in shopping by retail formats, past 3 months1 % of respondents who shopped at a different retailer/store than normal 27% of consumers changed their retailer/store in the last 3 months 1. Q: You mentioned that in the last 3 months 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? Net change calculated by subtracting all "shopped less" answers from all "shopped more" answers. 2. Difference calculated by subtracting the answers of all consumers from those in a subgroup—here split per country. Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
  • 27. McKinsey & Company 27 Consumers’ top reasons for moving to a new retailer are prices/ promotions and value for money, particularly in the United Kingdom and Italy 1. Q: You mentioned you shopped from a different retailer/store in the past 3 months when purchasing groceries and other essentials (eg, toiletries, cleaning products). What were the main reasons you decided to try this new retailer/store? Respondents could choose up to 3 reasons. 2. Calculated by subtracting the answers of all consumers from those in a subgroup—here split per country. All consumers Top reasons for choice of new retailer/store for groceries/essentials1 % of respondents who shopped at a different retailer/store than normal in last 3 months 46 46 20 20 16 15 13 13 10 10 8 8 8 6 6 6 6 3 Cleaner/has better hygiene measures Better prices/promotions More easily accessible from my home Better value for money I wanted to save on the cost of gasoline Wanted to treat myself Better quality ​Family/friend recommendations Supporting local businesses ​Products are in stock ​Less crowded/has shorter lines Wanted variety/a change from normal ​One-stop shop ​Offers natural/organic offerings Shares my values The company treats its employees well More sustainable/environmentally friendly Their response to the invasion of Ukraine Between −2 and +2 < −2 > +2 Difference vs Europe 5,2 percentage points 27% of consumers changed their retailer/store in the last 3 months 45 41 17 20 19 13 22 13 9 10 14 4 8 6 8 2 8 4 Germany 50 62 15 13 13 9 16 11 10 9 8 3 6 4 4 2 4 5 UK 51 44 23 20 18 15 8 11 8 10 8 13 5 8 6 3 5 5 Italy 41 38 22 22 12 13 13 12 11 9 5 7 12 7 5 6 10 7 France 40 35 24 25 17 23 8 17 12 10 5 12 9 8 7 3 6 9 Spain Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
  • 28. McKinsey & Company 28 Across generations, better prices/promotions and better value for money consistently are key reasons for switching retailers; response to invasion of Ukraine is the least important driver 1. Q: You mentioned you shopped from a different retailer/store in the past 3 months when purchasing groceries and other essentials (eg, toiletries, cleaning products). What were the main reasons you decided to try this new retailer/store? Respondents could choose up to 3 reasons. 2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational split. Top reasons for choice of new retailer/store for groceries/essentials1 % of respondents who shopped from a different retailer/store than normal in last 3 months 45 41 22 20 19 17 14 13 13 10 9 8 8 8 6 4 4 2 ​Less crowded/has shorter lines More easily accessible from my home Better prices/promotions Supporting local businesses Better value for money ​Offers natural/organic offerings ​One-stop shop ​Products are in stock I wanted to save on the cost of gasoline Better quality ​Family/friend recommendations Wanted variety/a change from normal Wanted to treat myself Shares my values Their response to the invasion of Ukraine More sustainable/environmentally friendly Cleaner/has better hygiene measures The company treats its employees well Between −2 and +2 < −2 > +2 Difference vs all consumers2 percentage points 16 51 40 5 14 13 7 26 13 2 9 8 9 14 1 16 4 11 Millennials 14 45 38 7 21 9 12 17 12 4 9 9 8 11 1 20 3 13 Gen X 22 37 45 2 16 12 6 24 16 6 8 4 12 6 5 16 14 20 Gen Z 14 42 42 2 33 23 9 19 19 7 5 9 2 7 2 23 7 7 Baby boomers All consumers 25% of consumers changed their retailer/store in the last 3 months Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 29. McKinsey & Company 29 Trading down is particularly evident in household products, frozen foods, and snacks and confectionary 24 31 32 32 36 38 38 42 40 38 56 4 4 4 6 6 4 5 4 7 10 4 72 64 64 61 58 58 57 54 53 53 40 ​Healthcare, beauty, baby Non-alcoholic beverages ​Bread and bakery Frozen foods Household products ​Snacks and confectionary ​Dairy and eggs Hot drinks ​Fresh fruit and vegetables Fresh meat, fish, poultry Alcohol No change Switched to higher-priced brand Switched to lower-cost or private-label brand 1. Q: You mentioned that in the last 3 months you tried a different brand than you normally would when purchasing groceries and other essentials. Which of the following best describes how/where you switched brands? 2. Calculated by subtracting the answers for "switched to higher-priced brand" and "no change“ from "switched to lower-cost or private-label brand." Brand-switching behavior of consumers1 % of respondents who switched to a different brand for groceries or essentials in last 3 months Net trade-down2 44 29 27 23 16 16 13 7 6 5 −20 57% of consumers changed a groceries/essentials brand in the last 3 months Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 30. McKinsey & Company 30 Consumers across countries are switching brands for groceries and essentials; German consumers are switching for bread and bakery Non-alcoholic beverages Fresh meat, fish, poultry ​Snacks and confectionary Household products Frozen foods 45 ​Dairy and eggs 7 ​Fresh fruit and vegetables Hot drinks ​Bread and bakery ​Healthcare, beauty, baby Alcohol 30 29 19 17 12 6 3 2 −10 Germany UK Italy France Spain 16 44 5 13 23 27 29 16 7 6 −20 14 7 25 −20 34 −5 17 −2 −17 −2 −1 13 43 56 38 28 24 32 13 19 17 −9 4 49 37 38 29 0 5 11 15 8 6 23 25 19 44 21 0 18 1 −11 −14 −6 1. Q: You mentioned that in the last 3 months you tried a different brand than you normally would when purchasing groceries and other essentials. Which of the following best describes how/where you switched brands? 2. Calculated by subtracting the answers for "switched to higher-priced brand" and "no change“ from "switched to lower-cost or private-label brand." Net trade-down2 Brand-switching behavior of consumers1 % of respondents who switched to a different brand for groceries or essentials in last 3 months 56% of consumers changed a groceries/essentials brand in the last 3 months Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
  • 31. McKinsey & Company 31 Across generations, better prices/promotions and better value for money consistently are key reasons for switching brands; ethical reasons are least important in this time of budget pressure 1. Q: You mentioned you tried a new/different brand than what you normally buy in the last 3 months when purchasing groceries and other essentials (eg, toiletries, cleaning products). What were the main reasons that drove this decision? Respondents could choose up to 3 reasons. 2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational split. Top reasons for choice of new brand for groceries/essentials1 % of respondents who bought a different brand than normal in last 3 months Between −2 and +2 < −2 > +2 Difference vs all consumers2 percentage points All consumers 50 50 19 16 14 10 10 10 9 9 7 7 7 6 5 5 3 3 Better quality Their response to the invasion of Ukraine Better prices/promotions Better value for money Available where I’m shopping ​Products are in stock Larger package sizes More sustainable/environmentally friendly Wanted to try a new brand I found Supporting local businesses Wanted variety/a change from normal Wanted to treat myself Wanted to try new type of product Is natural/organic Better shipping/delivery cost Cleaner/safer The company treats its employees well Shares my values 4 7 2 1 9 22 18 17 58 48 44 45 60 48 25 52 8 14 3 0 22 11 19 18 6 7 10 11 7 14 5 5 11 9 15 17 1 9 3 3 7 16 11 5 13 9 9 7 3 9 3 8 10 7 4 8 6 5 6 11 9 20 8 8 7 20 3 3 10 18 10 8 Millennials Gen X Gen Z Baby boomers 57% of consumers changed a groceries/ essentials brand in the last 3 months Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 32. McKinsey & Company 32 When observing price increases, more than half of consumers change behavior; about 20 percent say they delay the purchase Perception of price increase and action taken by consumers by category 1. Q: In the last 3 months, 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 3 months, have you done any of the following when purchasing [product]? 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. 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 95 89 85 64 59 Apparel and footwear Eating out Gasoline Energy for the home Nonfood products 29 37 29 27 25 21 8 18 23 23 5 7 8 13 12 2 2 5 5 3 16 8 15 26 24 3 4 7 13 12 4 7 7 9 3 24 5 19 20 20 Consumer-observed price increases by category1 % of respondents rating increase 4 or 5 on 5-point scale Changed behavior when price increase perceived2 % of respondents reacting to perceived price increase Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 33. McKinsey & Company 33 Across categories, majorities of European consumers switching brands are moving to private labels Type of brand selected (private label or not)2 % of respondents choosing a different or lower-cost brand as reaction to a perceived price increase Switch to lower-cost or different brand % of respondents reacting to a perceived price increase 81 71 79 71 50 19 29 21 29 50 1. Q: In the last 3 months, have you done any of the following when purchasing [product]? 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, none of these. 2. Q: You mentioned that you switched to a different brand when purchasing [product]. Was this a private-label brand (eg, supermarket brand)? Consumers switching brands by product category1 % of respondents who perceived a price increase in category and switched to a different or lower-cost brand in the last 3 months 41 38 28 21 17 Apparel and footwear Energy for the home Nonfood products Eating out Gasoline Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years Private-label brand Non-private-label brand Germany UK Italy France Spain
  • 34. McKinsey & Company 34 Consumers across countries are less brand-loyal for nonfood products and for apparel and footwear, more brand-loyal for fuel and energy 41 38 28 21 17 Eating out (eg, in a restaurant, bar) Nonfood products (eg, electronics, appliances, furniture) Apparel and footwear Fuel (eg, gasoline, diesel) Energy (heating, electricity) for the home Switch to lower-cost or different brand1 % of respondents reacting to perceived price increase Between −3 and +3 < −3 > +3 Difference from Europe 5,2 percentage points 1. Q: In the last 3 months, have you done any of the following when purchasing [product]? Data are for respondents who answered they switched to a different or lower-cost brand. 2. Calculated by subtracting the answers of all consumers from those in a subgroup—here split per country. Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years Europe 5 Germany UK Italy France Spain 40 34 35 27 22 39 37 24 21 15 36 41 28 25 18 45 39 28 14 12 45 40 26 20 17
  • 35. McKinsey & Company 35 38 27 58 50 38 23 41 31 39 27 53 47 42 19 Reasons for choosing a product/brand in the past 3 months1 % of respondents rating reason as 1 or 2 (unimportant) and 5 or 6 (important) on 6-point scale Trying out a new brand is strongly driven by ‘rational’ reasons, though trust and no artificial ingredients are also very important; ethical reasons related to invasion in Ukraine least important Rational Beliefs Sustainability 9 10 12 15 14 14 10 5 4 6 8 26 30 33 No artificial ingredients/natural/GMO-free Recyclable products, packaging, or initiatives Small or neutral carbon footprint Sustainably sourced materials Fair trade practices Brand known for good animal welfare Locally sourced/locally owned Lower price Available in the store closest to me Brand that I know and trust Brand actively supporting the humanitarian effort in Ukraine Brand that has stopped doing business in Russia Brand that has made public statements in support of Ukraine 41 31 26 23 17 13 29 54 41 34 −3 49 Brand that treats employees well −14 −3 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years Unimportant Important Net importance2 1. Q: In the last 3 months, 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.
  • 36. McKinsey & Company 36 Reason for trying a new brand in the past 3 months1 Net importance rating2 1. Q: In the last 3 months, 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. Consumers in Germany, Italy, and Spain place more value on sustainability; those in Spain also value a clear position on Ukraine 29 29 21 17 10 2 28 54 46 41 32 -1 -2 -12 No artificial ingredients/natural/GMO free Locally sourced / locally owned Small or neutral carbon footprint Brand known for good animal welfare Recyclable products, packaging, or initiatives Sustainably sourced materials Fair trade practices Lower price Available in the store closest to me Brand that I know and trust Brand that treats employees well Brand is actively supporting the humanitarian effort in Ukraine Brand has stopped doing business in Russia Brand has made public statements in support of Ukraine 41 31 26 23 17 13 29 54 49 41 34 -3 -3 -14 25 16 10 7 -2 -14 23 40 38 33 23 -17 -16 -23 10 28 16 11 -1 -1 9 67 53 40 28 3 6 -13 31 29 19 14 13 -3 34 43 35 38 31 -3 -8 -11 38 43 35 32 24 15 44 64 55 52 46 16 11 3 Source: McKinsey & Company Europe Consumer Pulse Survey, 6/8–6/12/2022, n = 5,076 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years Europe 5 Germany France UK Italy Spain Rational Beliefs Sustain- ability
  • 37. McKinsey & Company 37 Majority of Gen Z and millennials still plan to splurge or treat themselves in 2022 1. Q: With regard to products and services you will spend money on, do you plan to splurge/treat yourself in the next 6 months? 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. 56 44 42 Yes 58 Oct 2021 Feb 2021 37 63 June 2022 No Respondents who plan/do not plan to splurge/treat themselves in 20221 % of respondents 48 57 66 58 52 43 34 Baby boomers2 42 Millennials Gen Z Gen X Generational cut, June 2022 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years
  • 38. McKinsey & Company 38 Splurging most often planned for restaurants for older consumers; apparel more often planned by Gen Z Optimism and spend intent returning | Current as of October 2021 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. 38 36 34 30 29 26 24 19 17 17 17 16 16 9 Personal services Restaurants, dining out, bars Sports apparel and equipment Apparel, shoes, accessories International travel for holidays Domestic travel for holidays Out-of-home entertainment Electronics Household essentials Fitness Items for your home Makeup and skin care products Outdoor living Pets Gen Z Baby boomers2 27 44 37 35 44 28 27 37 31 25 21 31 23 21 30 22 29 12 Generational cut 24 9 20 15 19 14 17 13 Change from Oct 2021, percentage points −6 N/A 0 N/A +1 −2 −1 +6 -4 −5 −5 −1 +7 Categories 20 Millennials 38 34 36 23 34 19 26 13 16 23 20 11 16 6 Gen X 40 38 30 34 24 33 24 16 18 14 14 17 18 9 7 0 Source: McKinsey & Company Germany Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match German general population 18+ years Between −3 and +3 < −3 > +3 Difference from all respondents percentage points Categories where consumers intend to treat themselves1 % of all respondents with intent to splurge in 2022

Editor's Notes

  1. Custom Cut – Savanta / Chris
  2. Custom Cut – Savanta / Chris