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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 dominate concerns;
pessimism in economy holds steady
Steep increases of prices for
essentials influence consumers’
purchase behavior
Consumers’ purchase behavior
changed in search for higher 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 Italian consumers.
Unemployment and climate change follow,
downgrading COVID-19 concern
While rising prices and the Ukraine invasion are
common greatest worries, unemployment
particularly affects low-income and Gen Z
consumers
Pessimism about economic recovery persists
since April 2022, registering an overall increase of
eight percentage points versus March 2020
Nearly all respondents have observed price
increases, especially for gasoline and energy
Italian consumers expect to cut back on savings
to face the rise in prices of essential goods
Gen X is showing the greatest concern, adapting
their personal lifestyle to cope with this increase
Savings apart, spending has already slowed in
the jewelry, accessories, and furniture categories.
71% of consumers have changed shopping
behavior in response to concerns and pressures
faced in the past three months
Trading down is widespread, and more than one-
third of consumers are testing new brands.
There is a massive shift to discounters: among
consumers saying they shopped at a different
retailer, almost 40% report shopping more at
discounters
However, more than 20% of Italian consumers
plan to splurge in 2022, most on travel
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian 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
4
2
3
3
1
4
2
2
2 3
1
4
3
2
1 2
4
0
4
4
1
2
5
8
8
15
53
1
4
3
3 1
Rising prices
Invasion of Ukraine
Cost and accessibility of healthcare
Unemployment/job security
Extreme weather events/
climate change
Political uncertainty
Brexit
Immigration
COVID-19 pandemic
Other
McKinsey & Company 4
Rising prices have topped Italian consumers’ concerns since April
2022, followed by the invasion of Ukraine and unemployment,
overcoming pandemic concerns
79
52
39
38
32
20
20
17
2
1
74
62
37
31
48
17
14
13
3
1
Rising prices
Immigration
Other
Invasion of Ukraine
Unemployment/job security
Cost/accessibility of healthcare
COVID-19 pandemic
Extreme weather events/climate change
Political uncertainty
Brexit
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
42
20
13
10
6
4
2
3
0
0
32
32
11
6
11
3
2
2
1
1
Among top 3 sources of concern1 Top source of concern2
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
June 2022
Apr 2022
McKinsey & Company 5
Rising prices are the dominant concern for all categories, followed
by the invasion of Ukraine—except for low-income, Gen Z, and
millennials, whose number-two concern is unemployment
10
6
10
13
20
42
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.
9 10 11
6 7
9 10 11
24
9 6
13
22 25
40 43 42
5
Middle
income
Low income High
income
9 9 10 10
5 7 7 5
11 11 8 10
19 19
14
6
12
15
18
27
45
39 43 42
Gen Z Millennials Gen X Baby
boomers
Split by generation
Split by income
Other
Rising prices
Invasion of Ukraine
Unemployment
COVID-19 pandemic
Extreme weather events
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 6
COVID-19 is more of a concern for high-income consumers;
unemployment concern falls as age rises
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.
79
52
39
38
32
20
20
17
2
1
Immigration
Unemployment/job security
Rising prices
Invasion of Ukraine
Extreme weather events/climate change
COVID-19 pandemic
Cost/accessibility of healthcare
Political uncertainty
Brexit
Other
High
income
Middle
income
Low
income
Gen Z Millennials Gen X Baby
boomers
78
45
55
33
29
24
18
15
2
0
83
54
32
41
29
19
20
17
2
1
72
58
32
40
40
18
20
18
3
1
77
47
55
40
25
17
25
11
3
1
75
50
47
39
30
18
18
17
5
0
83
49
42
34
35
19
18
16
2
1
78
59
25
41
33
24
20
19
1
1
Split by generation
Split by income
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 7
Almost two out of three consumers—and significantly more in the
United Kingdom—are negative about their own country’s current
economic state
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
Neutral
Positive
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
Confidence in own country’s current economic state1
% of respondents
McKinsey & Company 8
Low-income and Gen X consumers are more skeptical of Italy’s
current state of the economy than other consumer groups
59
30
11
Overall
Positive
Neutral
Negative
Confidence in own country’s current economic state1
% of respondents
1. Q: How are you feeling about Italy’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.
66 59 52
26 30 34
15
8 11
Low (<€5K) Middle
(€25K–50K)
High (>€50K)
47 58 64 61
35
29 28 31
18 14
Gen Z Millennials Baby boomers2
9
Gen X
8
By income
By generation
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 9
Italian consumers worried about rising prices and unemployment
are the most pessimistic on the current economy
66
54
43
67
52
27
35
38
26
32
8 12
18
7
16
Unemployment
Rising prices COVID-19
pandemic
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 −58 −42 −25
59
30
11
Positive
Overall
Neutral
Negative
−48
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
−61 −35
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
Rising interest rates
Interruption of gasoline
Food shortages
Supply chain shortages
Impact of influx of refugees
Unemployment rates
Energy shortages
Risk of further escalation of the war
Uncertainty on the stock market
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
30 30 32 30 31 31
24
17
25
38 38
52 55 53 55 54 53
55
49
51
50 51
18 15 15 15 14 16 21
34
24
12 11
Sept 2020
Mar 2020 Feb 2021 June 20223
May 2020 June 2020 Oct 2021
Nov 2020 Apr 20223
Apr 2020 Mar 2022
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 Italy’s economy, after declining in 2021,
has risen above the levels measured during the height of the
COVID-19 pandemic
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 2
boxes of scale aggregated to "Optimistic," "Neutral", and "Pessimistic." Figures may not sum to 100%, due of rounding.
2. Average of bi-weekly pulse surveys shown for Mar–May 2020.
3. Question in Apr 2022 and Jun 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 Italy 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 Italy’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
The majority of consumers feel neutral about Italy’s economic
recovery, with pessimism most common among low-income and
Gen X consumers
38
51
11
Pessimistic
Overall
Optimistic
Neutral
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.
45 33 37
45
55 53
High (>€50K)
Low (<€25K) Middle
(€25K–50K)
9 12 10
29 36 41 40
53 48 51 54
18 15
Baby boomers2
Gen Z Millennials Gen X
6
9
By income
By generation
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 14
Three emerging consumer themes in June 2022
Steep increases of prices for
essentials influence consumers’
purchase behavior
Consumers’ purchase behavior
changed in search for higher 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 Italian consumers.
Unemployment and climate change follow,
downgrading COVID-19 concern
While rising prices and the Ukraine invasion are
common greatest worries, unemployment
particularly affects low-income and Gen Z
consumers
Pessimism about economic recovery persists
since April 2022, registering an overall increase of
eight percentage points versus March 2020
Nearly all respondents have observed price
increases, especially for gasoline and energy
Italian consumers expect to cut back on savings
to face the rise in prices of essential goods
Gen X is showing the greatest concern, adapting
their personal lifestyle to cope with this increase
Savings apart, spending has already slowed in
the jewelry, accessories, and furniture categories.
71% of consumers have changed shopping
behavior in response to concerns and pressures
faced in the past three months
Trading down is widespread, and more than one-
third of consumers are testing new brands.
There is a massive shift to discounters: among
consumers saying they shopped at a different
retailer, almost 40% report shopping more at
discounters
However, more than 20% of Italian consumers
plan to splurge in 2022, most on travel
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
Rising prices and invasion of
Ukraine dominate concerns;
pessimism in economy holds steady
McKinsey & Company 15
Across countries surveyed, over 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
Yes
No
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
Price change perceived across all categories. Gasoline, energy and
groceries described as the most affected expenses. Apparel and
footwear and rent prices pointed as constant by more than 25 percent
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.
Decreased
Increased significantly
Stayed the same
Increased Not sure
Price changes perceived in last 3 months
General price change1
% of respondents
Price change by category2
% of respondents who shopped category
7
93
Yes
No
Net change3
93
83
92
82
65
52
69
64
32
3
5
9
20
16
24
25
34
14
20
48
54
45
34
52
47
23
81
74
46
29
22
21
19
18
12
6
11
27
7
30
Gasoline
Energy (heating, electricity) for the home
Groceries and food for the home
1
Rent
2
3
1
1
1
2
1
2
Eating out (eg, in a restaurant, bar)
Interest rates (eg, for mortgages, consumer loans)
2
Nonfood products (eg, electronics, appliances, furniture)
2
Cleaning and personal care (eg, laundry, soap, shampoo)
Apparel and footwear
2
2
3
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 17
Grown concern about price rises since Apr’22, most consumers
planning to reduce the spend. Gen X showing the deepest concern,
on the contrary Gen Z manifesting a moderate one
69
66
55
39
16
63
56
48
34
15
​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
62 69 73 66
52 63 70 70
37 37 42 37
50 57 58 51
18 23 16
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
9
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
June 2022
Apr 2022
McKinsey & Company 18
Italian consumers lowering their savings to face energy, transport
and food price increase. Their expectations for the next three
months reflect current state
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
12
20 24 19
40
63
76
17
21
37
35
28
12
63
55
43
26
9
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Net change3
0 −14
24
43 31 −54 2 −9
30
54 38 −41
Higher Lower
About the same
14 13
20 18
39
55
71
20
21
35
31
31
16
67
59
47
30
14
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 Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian 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
Gasoline expenses faced the highest rise, but a decrease is expected;
strongest spend reduction for the jewelry category
10
20
33
35
37
40
34
35
50
44
34
17
14
29
44
36
33
25
46
18
22
14
16
26
12
16
12
12
15
17
18
14
11
12
14
17
Food takeout and delivery
Groceries
Tobacco products
Skin care and makeup
Restaurant
Quick-service restaurant
Alcohol
Home improvement, garden
Apparel
Footwear
Jewelry
Accessories
Toys and baby supplies
Household supplies
Personal-care products
Home and furniture
Sports and outdoors
Kitchen and dining
Decrease Increase
Stay the same
12
20
14
31
34
45
19
27
33
14
25
32
23
36
30
34
38
32
22
19
10
10
16
17
18
21
16
68
32
17
49
13
20
25
20
18
Consumer electronics
Fitness and wellness
Books/magazines/newspapers
Travel by car
Pet food and supplies
Vitamins and OTC medicine
Entertainment at home
Out-of-home entertainment
Pet care services
Personal-care services
Gasoline
Hotel/resort stays
Vehicles
Short-term home rentals
Cruises
Adventures and tours
International flights
Domestic flights
−21
−18
−28
−1
−6
−17
54
−14
25
−23
−10
−10
−18
−4
7
23
−15
−22
−23
−17
−23
−18
−36
−33
−24
−7
−1
−17
−34
−29
−31
−13
Net change
expected,3 next
3 months
−1 −9
−7
−22
−25
−16
−5
−14
−15
37
−1
−7
22
−11
−4
−4
−14 −8
Net change3
−33
36
0
4
−24
−2
−11
−21
−14
−21
−20
−38
−20
−16
−33
−19
−8
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 spend from the % of respondents stating they increased spend in the category.
Net change > +15
Net change −15 to +15
Net change < −15
xx xx xx
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
−9
2
10
−26
−22
McKinsey & Company 21
More than half of Italian consumers gained awareness of their
home energy usage; especially Gen Z consumers have adapted their
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
55
34
23
18
16
11
8
8
6
6
5
5
4
13
I have delayed/canceled a planned purchase of a car/other vehicle
I have changed my mode of transport to use less gasoline/to save money
I have delayed/canceled a pending trip/vacation
I have become more conscious about my home energy usage
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 companies
that have not taken a stance on the invasion of Ukraine
I have offered to shelter/sponsor Ukraine refugees
I have stocked up on products (e.g., grocery or household items) that I
use often in the event that there are supply chain shortages
I have 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
None of these
I have reduced/stopped purchasing products from Russian companies
I have sped up my plan to purchase a new home
I have sold/plan to sell my car or other vehicle
Generational cut
Millennials Gen X
Gen Z
Baby
boomers3
34 34 32 33
54 52 60
23 19 17 18
6 11 6 2
5 5 4
13 9 13
4 8 5 2
11 12 19 17
10 7 8
6 7 5 4
27 22 21
8 7 8
5 5 4
13 10 12 18
All consumers
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
42
52
21
10
8
10
10
18
9
7
25
10
5
6
McKinsey & Company 22
Three emerging consumer themes in June 2022
Consumers’ purchase behavior
changed in search for higher value
for money
1 2 3
How do consumers feel? What do consumers
observe?
How are consumers reacting?
71% of consumers have changed shopping
behavior in response to concerns and pressures
faced in the past three months
Trading down is widespread, and more than one-
third of consumers are testing new brands.
There is a massive shift to discounters: among
consumers saying they shopped at a different
retailer, almost 40% report shopping more at
discounters
However, more than 20% of Italian consumers
plan to splurge in 2022, most on travel
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
Steep increases of prices for
essentials influence consumers’
purchase behavior
Rising prices and the invasion of Ukraine are by
far the strongest concerns of Italian consumers.
Unemployment and climate change follow,
downgrading COVID-19 concern
While rising prices and the Ukraine invasion are
common greatest worries, unemployment
particularly affects low-income and Gen Z
consumers
Pessimism about economic recovery persists
since April 2022, registering an overall increase of
eight percentage points versus March 2020
Nearly all respondents have observed price
increases, especially for gasoline and energy
Italian consumers expect to cut back on savings
to face the rise in prices of essential goods
Gen X is showing the greatest concern, adapting
their personal lifestyle to cope with this increase
Savings apart, spending has already slowed in
the jewelry, accessories, and furniture categories.
Rising prices and invasion of
Ukraine dominate concerns;
pessimism in economy holds steady
McKinsey & Company 23
v
The vast majority of respondents have changed shopping behavior—
most commonly by switching to different brands
71
37
25
19
18
13
13
10
9
Use a new shopping method (eg, pickup and
food delivery subscription)
Switch from a brick-and-mortar store to online
Switch to a different brand than normal
Shop from a different retailer/store than normal
Try a private-label brand
Shop from a different website than normal
Try a new digital shopping method (eg, order
groceries via app)
Switch from online to a brick-and-mortar store
Activities 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
9
10
20
10
10
9
15
7
Activities
93% of consumers noticed a price increase
when shopping for groceries
Total: Any new shopping behavior3
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 24
71
37
25
19
18
13
13
10
9
Total: Any new shopping behavior3
Switch to a different brand than normal
​Use a new shopping method (eg, pickup and
food delivery subscription)
Shop from a different retailer/store than normal
Try a private-label brand
​Switch from a brick-and-mortar store to online
Shop from a different website than normal
​Try a new digital shopping method (eg, order
groceries via app)
​Switch from online to a brick-and-mortar store
Seven in ten consumers changed behavior when shopping for
groceries; younger generations more often changed behavior
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 1 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
23 22 12 5
17 17 6 3
21 10 7 9
23 21 12 5
90
48
30
17
29
83
38
29
20
25
69
38
23
19
16
57
31
20
19
12
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 25
Four in ten consumers increased purchases from discounters; a
majority maintained their purchase frequency at supermarkets
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
15
3
10
24
28
18
26
37
38
39
28
57
41
31
29
39
13
12
8
5
Discounter
Supermarket
Hypermarket
Specialty grocery store
Convenience store
Did not shop there Shopped same amount
Shopped less Shopped more
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
−26
−13
20
−30
−34
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 26
Consumers across countries are 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
Hypermarket
Discounter
Supermarket
Specialty grocery store
Convenience store
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
Better value for money
Shares my values
​Products are in stock
Better prices/promotions
​One-stop shop
​Family/friend recommendations
Better quality
More easily accessible from my home
I wanted to save on the cost of gasoline
Supporting local businesses
Wanted to treat myself
​Less crowded/has shorter lines
Wanted variety/a change from normal
​Offers natural/organic offerings
Cleaner/has better hygiene measures
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 52
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
In Italy, better prices and value for money are the key reasons for
switching retailers; few consumers say retailers’ response to the
invasion of Ukraine is important
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
51
44
23
20
18
15
13
11
10
8
8
8
8
6
5
5
5
3
More sustainable/environmentally friendly
I wanted to save on the cost of gasoline
Better prices/promotions
Better value for money
Better quality
​Offers natural/organic offerings
​Family/friend recommendations
Supporting local businesses
More easily accessible from my home
Wanted variety/a change from normal
Their response to the invasion of Ukraine
​Products are in stock
​Less crowded/has shorter lines
Cleaner/has better hygiene measures
​One-stop shop
The company treats its employees well
Shares my values
Wanted to treat myself
Between −2 and +2
< −2 > +2
Difference vs all consumers,2
percentage points
11
42
47
11
17
12
7
29
11
1
7
8
12
9
3
16
7
13
Millennials
19
56
49
1
16
11
10
20
14
1
6
4
3
1
3
13
3
9
Gen X
21
53
35
9
26
12
0
26
15
0
12
0
9
15
3
15
3
6
Gen Z
12
56
41
0
25
10
10
19
12
4
9
9
7
9
3
26
7
12
Baby
boomers
All consumers
25% of consumers changed their
retailer/store in the last 3 months
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 29
Over half of consumers who switched brands when shopping for
groceries and other essentials say they traded down, except when
buying hot drinks
20
25
26
38
31
39
36
45
37
41
41
5
6
6
6
4
8
6
5
9
7
6
74
69
69
56
64
53
58
50
54
52
53
Household products
Frozen foods
Non-alcoholic beverages
​Dairy and eggs
​Snacks and confectionary
​Bread and bakery
​Healthcare, beauty, baby
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
49
38
37
11
29
5
15
0
8
4
6
46% of consumers changed a
groceries/essentials brand in the last 3 months
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 30
Consumers across countries are switching brands for groceries and
essentials
​Healthcare, beauty, baby
Non-alcoholic beverages
2
Household products
Hot drinks
​Snacks and confectionary
Frozen foods
​Bread and bakery
​Dairy and eggs
Fresh meat, fish, poultry
​Fresh fruit and vegetables
Alcohol
45
30
29
19
17
12
7
6
3
−10
Germany UK Italy
France Spain
27
16
44
29
5
16
23
7
13
6
−20
7
34
25
−5
14
17
−17
−2
−2
−1
−20
13
19
43
32
56
38
28
17
24
13
−9
4
11
29
37
49
38
0
5
15
8
6
18
44
21
25
23
1
19
0
−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
Consumers’ top reasons for changing brands are price and value for
money
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
53
45
18
14
14
12
11
10
9
8
7
7
6
6
5
5
5
3
Larger package sizes
Better prices/promotions
Better quality
Better value for money
Wanted to try new type of product
Wanted to try a new brand I found
Supporting local businesses
More sustainable/environmentally friendly
Cleaner/safer
Available where I’m shopping
Better shipping/delivery cost
Shares my values
Is natural/organic
Wanted to treat myself
Wanted variety/a change from normal
​Products are in stock
The company treats its employees well
Their response to the invasion of Ukraine 5
5 1 2
14
12
20 13
49
46
49 39
64
37
46 58
8
7 3
3
30
20 12 12
9
10 10
8
3
5 10
5
14
20 10 14
5
12 4
13
0 8
7
14
12 9
8
4
5 6
1
8
7 9
4
9
12 4
3
12
17 10 8
9
7 2
3
11
10 11 14
Millennials Gen X
Gen Z
Baby
boomers2
46% of consumers changed a groceries/
essentials brand in the last 3 months
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
7
McKinsey & Company 32
More than 60 percent of consumers perceiving price increases
changed behavior, with the top change being purchase of a smaller
size/quantity
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
94
84
67
66
Eating out
Gasoline
Nonfood products
Energy for the home
Apparel and footwear
30
37
20
24
20
10
8
14
21
22
8
8
12
12
14 4
2
1
1
3
16
11
16
24
27
9
13
13
3
3 5
5
7
7
3
23
9
28
33
30
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 Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 33
Across categories, majorities of 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
Energy for the home
Eating out
Apparel and footwear
Nonfood products
Gasoline
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
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
Nonfood products (eg, electronics, appliances, furniture)
Apparel and footwear
Eating out (eg, in a restaurant, bar)
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
17
42
28
48
32
44
41
40
32
40
41
22
22
18
Brand choice is driven by fair trade practices and ‘rational’ reasons
- price and availability
11
13
18
14
20
5
6
6
7
8
25
30
29
11
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
31
19
14
13
-3
43
38
35
31
-3
−11
34
Brand that treats employees well
29
−8
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
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
Unimportant Important
Net
importance2
Rational
Beliefs
Sustainability
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
Fair trade practices
Brand has stopped doing business in Russia
Brand that I know and trust
Brand known for good animal welfare
Brand that treats employees well
No artificial ingredients/natural/GMO free
Recyclable products, packaging, or initiatives
Small or neutral carbon footprint
Lower price
Sustainably sourced materials
Locally sourced / locally owned
Available in the store closest to me
Brand is actively supporting the humanitarian effort in Ukraine
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
The percentage of consumers intending to splurge or treat
themselves has increased since October 2021 - the majority of Gen Z
and millennials still plan on splurging 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.
53
63
53
47 47
Yes
Oct 2021
Feb 2021 June 2022
37
No
Respondents who plan/do not plan to splurge/treat themselves in 20221
% of respondents
30
39
55
69
70
61
45
31
Gen X
Gen Z Millennials Baby boomers2
Generational cut, June 2022
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
McKinsey & Company 38
The most common plans for splurging are personal care
and international travel for younger generations, domestic travels
and restaurants for baby boomers
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.
37
34
34
33
30
24
22
17
16
12
12
11
9
7
Restaurants, dining out, bars
Fitness
Sports apparel and equipment
Personal services
Apparel, shoes, accessories
Items for your home
Domestic travel for holidays
International travel for holidays
Electronics
Out-of-home entertainment
Makeup and skin care products
Household essentials
Pets
Outdoor living
Gen Z
Baby
boomers2
46 24
25 42
38 41
36 34
25
29
25
16
19
20
23
12
21
8
Generational cut
13
2
9
16
6
10
4
6
Change from
Oct 2021,
percentage points
−6
N/A
0
N/A
+1
−2
−1
+6
−4
−5
−5
−1
+7
Categories Millennials
35
36
31
31
30
28
26
19
20
16
11
11
9
9
Gen X
42
32
30
32
29
24
16
17
12
12
9
12
12
8 4
0
Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
31
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 Italian 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 dominate concerns; pessimism in economy holds steady Steep increases of prices for essentials influence consumers’ purchase behavior Consumers’ purchase behavior changed in search for higher 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 Italian consumers. Unemployment and climate change follow, downgrading COVID-19 concern While rising prices and the Ukraine invasion are common greatest worries, unemployment particularly affects low-income and Gen Z consumers Pessimism about economic recovery persists since April 2022, registering an overall increase of eight percentage points versus March 2020 Nearly all respondents have observed price increases, especially for gasoline and energy Italian consumers expect to cut back on savings to face the rise in prices of essential goods Gen X is showing the greatest concern, adapting their personal lifestyle to cope with this increase Savings apart, spending has already slowed in the jewelry, accessories, and furniture categories. 71% of consumers have changed shopping behavior in response to concerns and pressures faced in the past three months Trading down is widespread, and more than one- third of consumers are testing new brands. There is a massive shift to discounters: among consumers saying they shopped at a different retailer, almost 40% report shopping more at discounters However, more than 20% of Italian consumers plan to splurge in 2022, most on travel Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian 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 4 2 3 3 1 4 2 2 2 3 1 4 3 2 1 2 4 0 4 4 1 2 5 8 8 15 53 1 4 3 3 1 Rising prices Invasion of Ukraine Cost and accessibility of healthcare Unemployment/job security Extreme weather events/ climate change Political uncertainty Brexit Immigration COVID-19 pandemic Other
  • 4. McKinsey & Company 4 Rising prices have topped Italian consumers’ concerns since April 2022, followed by the invasion of Ukraine and unemployment, overcoming pandemic concerns 79 52 39 38 32 20 20 17 2 1 74 62 37 31 48 17 14 13 3 1 Rising prices Immigration Other Invasion of Ukraine Unemployment/job security Cost/accessibility of healthcare COVID-19 pandemic Extreme weather events/climate change Political uncertainty Brexit 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 42 20 13 10 6 4 2 3 0 0 32 32 11 6 11 3 2 2 1 1 Among top 3 sources of concern1 Top source of concern2 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years June 2022 Apr 2022
  • 5. McKinsey & Company 5 Rising prices are the dominant concern for all categories, followed by the invasion of Ukraine—except for low-income, Gen Z, and millennials, whose number-two concern is unemployment 10 6 10 13 20 42 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. 9 10 11 6 7 9 10 11 24 9 6 13 22 25 40 43 42 5 Middle income Low income High income 9 9 10 10 5 7 7 5 11 11 8 10 19 19 14 6 12 15 18 27 45 39 43 42 Gen Z Millennials Gen X Baby boomers Split by generation Split by income Other Rising prices Invasion of Ukraine Unemployment COVID-19 pandemic Extreme weather events Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 6. McKinsey & Company 6 COVID-19 is more of a concern for high-income consumers; unemployment concern falls as age rises 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. 79 52 39 38 32 20 20 17 2 1 Immigration Unemployment/job security Rising prices Invasion of Ukraine Extreme weather events/climate change COVID-19 pandemic Cost/accessibility of healthcare Political uncertainty Brexit Other High income Middle income Low income Gen Z Millennials Gen X Baby boomers 78 45 55 33 29 24 18 15 2 0 83 54 32 41 29 19 20 17 2 1 72 58 32 40 40 18 20 18 3 1 77 47 55 40 25 17 25 11 3 1 75 50 47 39 30 18 18 17 5 0 83 49 42 34 35 19 18 16 2 1 78 59 25 41 33 24 20 19 1 1 Split by generation Split by income Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 7. McKinsey & Company 7 Almost two out of three consumers—and significantly more in the United Kingdom—are negative about their own country’s current economic state 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 Neutral Positive 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 Confidence in own country’s current economic state1 % of respondents
  • 8. McKinsey & Company 8 Low-income and Gen X consumers are more skeptical of Italy’s current state of the economy than other consumer groups 59 30 11 Overall Positive Neutral Negative Confidence in own country’s current economic state1 % of respondents 1. Q: How are you feeling about Italy’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. 66 59 52 26 30 34 15 8 11 Low (<€5K) Middle (€25K–50K) High (>€50K) 47 58 64 61 35 29 28 31 18 14 Gen Z Millennials Baby boomers2 9 Gen X 8 By income By generation Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 9. McKinsey & Company 9 Italian consumers worried about rising prices and unemployment are the most pessimistic on the current economy 66 54 43 67 52 27 35 38 26 32 8 12 18 7 16 Unemployment Rising prices COVID-19 pandemic 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 −58 −42 −25 59 30 11 Positive Overall Neutral Negative −48 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years −61 −35
  • 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 Rising interest rates Interruption of gasoline Food shortages Supply chain shortages Impact of influx of refugees Unemployment rates Energy shortages Risk of further escalation of the war Uncertainty on the stock market 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 30 30 32 30 31 31 24 17 25 38 38 52 55 53 55 54 53 55 49 51 50 51 18 15 15 15 14 16 21 34 24 12 11 Sept 2020 Mar 2020 Feb 2021 June 20223 May 2020 June 2020 Oct 2021 Nov 2020 Apr 20223 Apr 2020 Mar 2022 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 Italy’s economy, after declining in 2021, has risen above the levels measured during the height of the COVID-19 pandemic 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 2 boxes of scale aggregated to "Optimistic," "Neutral", and "Pessimistic." Figures may not sum to 100%, due of rounding. 2. Average of bi-weekly pulse surveys shown for Mar–May 2020. 3. Question in Apr 2022 and Jun 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 Italy 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 Italy’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 The majority of consumers feel neutral about Italy’s economic recovery, with pessimism most common among low-income and Gen X consumers 38 51 11 Pessimistic Overall Optimistic Neutral 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. 45 33 37 45 55 53 High (>€50K) Low (<€25K) Middle (€25K–50K) 9 12 10 29 36 41 40 53 48 51 54 18 15 Baby boomers2 Gen Z Millennials Gen X 6 9 By income By generation Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 14. McKinsey & Company 14 Three emerging consumer themes in June 2022 Steep increases of prices for essentials influence consumers’ purchase behavior Consumers’ purchase behavior changed in search for higher 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 Italian consumers. Unemployment and climate change follow, downgrading COVID-19 concern While rising prices and the Ukraine invasion are common greatest worries, unemployment particularly affects low-income and Gen Z consumers Pessimism about economic recovery persists since April 2022, registering an overall increase of eight percentage points versus March 2020 Nearly all respondents have observed price increases, especially for gasoline and energy Italian consumers expect to cut back on savings to face the rise in prices of essential goods Gen X is showing the greatest concern, adapting their personal lifestyle to cope with this increase Savings apart, spending has already slowed in the jewelry, accessories, and furniture categories. 71% of consumers have changed shopping behavior in response to concerns and pressures faced in the past three months Trading down is widespread, and more than one- third of consumers are testing new brands. There is a massive shift to discounters: among consumers saying they shopped at a different retailer, almost 40% report shopping more at discounters However, more than 20% of Italian consumers plan to splurge in 2022, most on travel Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years Rising prices and invasion of Ukraine dominate concerns; pessimism in economy holds steady
  • 15. McKinsey & Company 15 Across countries surveyed, over 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 Yes No 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 Price change perceived across all categories. Gasoline, energy and groceries described as the most affected expenses. Apparel and footwear and rent prices pointed as constant by more than 25 percent 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. Decreased Increased significantly Stayed the same Increased Not sure Price changes perceived in last 3 months General price change1 % of respondents Price change by category2 % of respondents who shopped category 7 93 Yes No Net change3 93 83 92 82 65 52 69 64 32 3 5 9 20 16 24 25 34 14 20 48 54 45 34 52 47 23 81 74 46 29 22 21 19 18 12 6 11 27 7 30 Gasoline Energy (heating, electricity) for the home Groceries and food for the home 1 Rent 2 3 1 1 1 2 1 2 Eating out (eg, in a restaurant, bar) Interest rates (eg, for mortgages, consumer loans) 2 Nonfood products (eg, electronics, appliances, furniture) 2 Cleaning and personal care (eg, laundry, soap, shampoo) Apparel and footwear 2 2 3 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 17. McKinsey & Company 17 Grown concern about price rises since Apr’22, most consumers planning to reduce the spend. Gen X showing the deepest concern, on the contrary Gen Z manifesting a moderate one 69 66 55 39 16 63 56 48 34 15 ​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 62 69 73 66 52 63 70 70 37 37 42 37 50 57 58 51 18 23 16 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 9 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years June 2022 Apr 2022
  • 18. McKinsey & Company 18 Italian consumers lowering their savings to face energy, transport and food price increase. Their expectations for the next three months reflect current state 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 12 20 24 19 40 63 76 17 21 37 35 28 12 63 55 43 26 9 Rent/ mortgage Energy/ utilities Transport and gasoline Food and essentials Nonfood discretionary Put money into savings Net change3 0 −14 24 43 31 −54 2 −9 30 54 38 −41 Higher Lower About the same 14 13 20 18 39 55 71 20 21 35 31 31 16 67 59 47 30 14 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 Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian 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 Gasoline expenses faced the highest rise, but a decrease is expected; strongest spend reduction for the jewelry category 10 20 33 35 37 40 34 35 50 44 34 17 14 29 44 36 33 25 46 18 22 14 16 26 12 16 12 12 15 17 18 14 11 12 14 17 Food takeout and delivery Groceries Tobacco products Skin care and makeup Restaurant Quick-service restaurant Alcohol Home improvement, garden Apparel Footwear Jewelry Accessories Toys and baby supplies Household supplies Personal-care products Home and furniture Sports and outdoors Kitchen and dining Decrease Increase Stay the same 12 20 14 31 34 45 19 27 33 14 25 32 23 36 30 34 38 32 22 19 10 10 16 17 18 21 16 68 32 17 49 13 20 25 20 18 Consumer electronics Fitness and wellness Books/magazines/newspapers Travel by car Pet food and supplies Vitamins and OTC medicine Entertainment at home Out-of-home entertainment Pet care services Personal-care services Gasoline Hotel/resort stays Vehicles Short-term home rentals Cruises Adventures and tours International flights Domestic flights −21 −18 −28 −1 −6 −17 54 −14 25 −23 −10 −10 −18 −4 7 23 −15 −22 −23 −17 −23 −18 −36 −33 −24 −7 −1 −17 −34 −29 −31 −13 Net change expected,3 next 3 months −1 −9 −7 −22 −25 −16 −5 −14 −15 37 −1 −7 22 −11 −4 −4 −14 −8 Net change3 −33 36 0 4 −24 −2 −11 −21 −14 −21 −20 −38 −20 −16 −33 −19 −8 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 spend from the % of respondents stating they increased spend in the category. Net change > +15 Net change −15 to +15 Net change < −15 xx xx xx Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years −9 2 10 −26 −22
  • 21. McKinsey & Company 21 More than half of Italian consumers gained awareness of their home energy usage; especially Gen Z consumers have adapted their 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 55 34 23 18 16 11 8 8 6 6 5 5 4 13 I have delayed/canceled a planned purchase of a car/other vehicle I have changed my mode of transport to use less gasoline/to save money I have delayed/canceled a pending trip/vacation I have become more conscious about my home energy usage 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 companies that have not taken a stance on the invasion of Ukraine I have offered to shelter/sponsor Ukraine refugees I have stocked up on products (e.g., grocery or household items) that I use often in the event that there are supply chain shortages I have 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 None of these I have reduced/stopped purchasing products from Russian companies I have sped up my plan to purchase a new home I have sold/plan to sell my car or other vehicle Generational cut Millennials Gen X Gen Z Baby boomers3 34 34 32 33 54 52 60 23 19 17 18 6 11 6 2 5 5 4 13 9 13 4 8 5 2 11 12 19 17 10 7 8 6 7 5 4 27 22 21 8 7 8 5 5 4 13 10 12 18 All consumers Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years 42 52 21 10 8 10 10 18 9 7 25 10 5 6
  • 22. McKinsey & Company 22 Three emerging consumer themes in June 2022 Consumers’ purchase behavior changed in search for higher value for money 1 2 3 How do consumers feel? What do consumers observe? How are consumers reacting? 71% of consumers have changed shopping behavior in response to concerns and pressures faced in the past three months Trading down is widespread, and more than one- third of consumers are testing new brands. There is a massive shift to discounters: among consumers saying they shopped at a different retailer, almost 40% report shopping more at discounters However, more than 20% of Italian consumers plan to splurge in 2022, most on travel Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years Steep increases of prices for essentials influence consumers’ purchase behavior Rising prices and the invasion of Ukraine are by far the strongest concerns of Italian consumers. Unemployment and climate change follow, downgrading COVID-19 concern While rising prices and the Ukraine invasion are common greatest worries, unemployment particularly affects low-income and Gen Z consumers Pessimism about economic recovery persists since April 2022, registering an overall increase of eight percentage points versus March 2020 Nearly all respondents have observed price increases, especially for gasoline and energy Italian consumers expect to cut back on savings to face the rise in prices of essential goods Gen X is showing the greatest concern, adapting their personal lifestyle to cope with this increase Savings apart, spending has already slowed in the jewelry, accessories, and furniture categories. Rising prices and invasion of Ukraine dominate concerns; pessimism in economy holds steady
  • 23. McKinsey & Company 23 v The vast majority of respondents have changed shopping behavior— most commonly by switching to different brands 71 37 25 19 18 13 13 10 9 Use a new shopping method (eg, pickup and food delivery subscription) Switch from a brick-and-mortar store to online Switch to a different brand than normal Shop from a different retailer/store than normal Try a private-label brand Shop from a different website than normal Try a new digital shopping method (eg, order groceries via app) Switch from online to a brick-and-mortar store Activities 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 9 10 20 10 10 9 15 7 Activities 93% of consumers noticed a price increase when shopping for groceries Total: Any new shopping behavior3 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 24. McKinsey & Company 24 71 37 25 19 18 13 13 10 9 Total: Any new shopping behavior3 Switch to a different brand than normal ​Use a new shopping method (eg, pickup and food delivery subscription) Shop from a different retailer/store than normal Try a private-label brand ​Switch from a brick-and-mortar store to online Shop from a different website than normal ​Try a new digital shopping method (eg, order groceries via app) ​Switch from online to a brick-and-mortar store Seven in ten consumers changed behavior when shopping for groceries; younger generations more often changed behavior 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 1 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 23 22 12 5 17 17 6 3 21 10 7 9 23 21 12 5 90 48 30 17 29 83 38 29 20 25 69 38 23 19 16 57 31 20 19 12 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 25. McKinsey & Company 25 Four in ten consumers increased purchases from discounters; a majority maintained their purchase frequency at supermarkets 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 15 3 10 24 28 18 26 37 38 39 28 57 41 31 29 39 13 12 8 5 Discounter Supermarket Hypermarket Specialty grocery store Convenience store Did not shop there Shopped same amount Shopped less Shopped more 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 −26 −13 20 −30 −34 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 26. McKinsey & Company 26 Consumers across countries are 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 Hypermarket Discounter Supermarket Specialty grocery store Convenience store 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 Better value for money Shares my values ​Products are in stock Better prices/promotions ​One-stop shop ​Family/friend recommendations Better quality More easily accessible from my home I wanted to save on the cost of gasoline Supporting local businesses Wanted to treat myself ​Less crowded/has shorter lines Wanted variety/a change from normal ​Offers natural/organic offerings Cleaner/has better hygiene measures 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 52 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 In Italy, better prices and value for money are the key reasons for switching retailers; few consumers say retailers’ response to the invasion of Ukraine is important 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 51 44 23 20 18 15 13 11 10 8 8 8 8 6 5 5 5 3 More sustainable/environmentally friendly I wanted to save on the cost of gasoline Better prices/promotions Better value for money Better quality ​Offers natural/organic offerings ​Family/friend recommendations Supporting local businesses More easily accessible from my home Wanted variety/a change from normal Their response to the invasion of Ukraine ​Products are in stock ​Less crowded/has shorter lines Cleaner/has better hygiene measures ​One-stop shop The company treats its employees well Shares my values Wanted to treat myself Between −2 and +2 < −2 > +2 Difference vs all consumers,2 percentage points 11 42 47 11 17 12 7 29 11 1 7 8 12 9 3 16 7 13 Millennials 19 56 49 1 16 11 10 20 14 1 6 4 3 1 3 13 3 9 Gen X 21 53 35 9 26 12 0 26 15 0 12 0 9 15 3 15 3 6 Gen Z 12 56 41 0 25 10 10 19 12 4 9 9 7 9 3 26 7 12 Baby boomers All consumers 25% of consumers changed their retailer/store in the last 3 months Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 29. McKinsey & Company 29 Over half of consumers who switched brands when shopping for groceries and other essentials say they traded down, except when buying hot drinks 20 25 26 38 31 39 36 45 37 41 41 5 6 6 6 4 8 6 5 9 7 6 74 69 69 56 64 53 58 50 54 52 53 Household products Frozen foods Non-alcoholic beverages ​Dairy and eggs ​Snacks and confectionary ​Bread and bakery ​Healthcare, beauty, baby 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 49 38 37 11 29 5 15 0 8 4 6 46% of consumers changed a groceries/essentials brand in the last 3 months Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 30. McKinsey & Company 30 Consumers across countries are switching brands for groceries and essentials ​Healthcare, beauty, baby Non-alcoholic beverages 2 Household products Hot drinks ​Snacks and confectionary Frozen foods ​Bread and bakery ​Dairy and eggs Fresh meat, fish, poultry ​Fresh fruit and vegetables Alcohol 45 30 29 19 17 12 7 6 3 −10 Germany UK Italy France Spain 27 16 44 29 5 16 23 7 13 6 −20 7 34 25 −5 14 17 −17 −2 −2 −1 −20 13 19 43 32 56 38 28 17 24 13 −9 4 11 29 37 49 38 0 5 15 8 6 18 44 21 25 23 1 19 0 −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 Consumers’ top reasons for changing brands are price and value for money 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 53 45 18 14 14 12 11 10 9 8 7 7 6 6 5 5 5 3 Larger package sizes Better prices/promotions Better quality Better value for money Wanted to try new type of product Wanted to try a new brand I found Supporting local businesses More sustainable/environmentally friendly Cleaner/safer Available where I’m shopping Better shipping/delivery cost Shares my values Is natural/organic Wanted to treat myself Wanted variety/a change from normal ​Products are in stock The company treats its employees well Their response to the invasion of Ukraine 5 5 1 2 14 12 20 13 49 46 49 39 64 37 46 58 8 7 3 3 30 20 12 12 9 10 10 8 3 5 10 5 14 20 10 14 5 12 4 13 0 8 7 14 12 9 8 4 5 6 1 8 7 9 4 9 12 4 3 12 17 10 8 9 7 2 3 11 10 11 14 Millennials Gen X Gen Z Baby boomers2 46% of consumers changed a groceries/ essentials brand in the last 3 months Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years 7
  • 32. McKinsey & Company 32 More than 60 percent of consumers perceiving price increases changed behavior, with the top change being purchase of a smaller size/quantity 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 94 84 67 66 Eating out Gasoline Nonfood products Energy for the home Apparel and footwear 30 37 20 24 20 10 8 14 21 22 8 8 12 12 14 4 2 1 1 3 16 11 16 24 27 9 13 13 3 3 5 5 7 7 3 23 9 28 33 30 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 Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 33. McKinsey & Company 33 Across categories, majorities of 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 Energy for the home Eating out Apparel and footwear Nonfood products Gasoline 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 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 Nonfood products (eg, electronics, appliances, furniture) Apparel and footwear Eating out (eg, in a restaurant, bar) 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 17 42 28 48 32 44 41 40 32 40 41 22 22 18 Brand choice is driven by fair trade practices and ‘rational’ reasons - price and availability 11 13 18 14 20 5 6 6 7 8 25 30 29 11 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 31 19 14 13 -3 43 38 35 31 -3 −11 34 Brand that treats employees well 29 −8 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years 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 Unimportant Important Net importance2 Rational Beliefs Sustainability 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 Fair trade practices Brand has stopped doing business in Russia Brand that I know and trust Brand known for good animal welfare Brand that treats employees well No artificial ingredients/natural/GMO free Recyclable products, packaging, or initiatives Small or neutral carbon footprint Lower price Sustainably sourced materials Locally sourced / locally owned Available in the store closest to me Brand is actively supporting the humanitarian effort in Ukraine 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 The percentage of consumers intending to splurge or treat themselves has increased since October 2021 - the majority of Gen Z and millennials still plan on splurging 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. 53 63 53 47 47 Yes Oct 2021 Feb 2021 June 2022 37 No Respondents who plan/do not plan to splurge/treat themselves in 20221 % of respondents 30 39 55 69 70 61 45 31 Gen X Gen Z Millennials Baby boomers2 Generational cut, June 2022 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years
  • 38. McKinsey & Company 38 The most common plans for splurging are personal care and international travel for younger generations, domestic travels and restaurants for baby boomers 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. 37 34 34 33 30 24 22 17 16 12 12 11 9 7 Restaurants, dining out, bars Fitness Sports apparel and equipment Personal services Apparel, shoes, accessories Items for your home Domestic travel for holidays International travel for holidays Electronics Out-of-home entertainment Makeup and skin care products Household essentials Pets Outdoor living Gen Z Baby boomers2 46 24 25 42 38 41 36 34 25 29 25 16 19 20 23 12 21 8 Generational cut 13 2 9 16 6 10 4 6 Change from Oct 2021, percentage points −6 N/A 0 N/A +1 −2 −1 +6 −4 −5 −5 −1 +7 Categories Millennials 35 36 31 31 30 28 26 19 20 16 11 11 9 9 Gen X 42 32 30 32 29 24 16 17 12 12 9 12 12 8 4 0 Source: McKinsey & Company Italy Consumer Pulse Survey, 6/8–6/12/2022, n = 1,007, sampled to match Italian general population 18+ years 31 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