Coronavirus COVID-19

Consumer insights
from Colombia
Results from consumer survey April 03-06, 2020
Updated: April 15th, 2020

Angela Samper
Carlos Buitrago
Juan Franco
Claudia Zaroni

CONFIDENTIAL AND PROPRIETARY

Any use of this material without specific permission of McKinsey & Company
is strictly prohibited
• COVID-19 is, first and foremost, a major humanitarian challenge. Thousands of health
professionals are battling the virus, putting their own lives at risk. Overstretched health systems will
need time and help to return to a semblance of normalcy.
• Solving the humanitarian challenge is, of course, priority #1. Much remains to be done
globally to respond and recover, from counting the humanitarian costs of the virus, to supporting
the victims and families, to finding a vaccine.
• This document is meant to help with a narrower goal: Provide consumer insights during the
current COVID-19 situation. In addition to the humanitarian challenge, there are implications for
the wide economy, businesses and employment. This document includes consumer insights from a
survey conducted between April 03 and April 06 in Colombia

McKinsey & Company 2

Summary
Week 3 of restrictive measures in place (April 03-06)

 Colombians are concerned with the crisis and unsure about the economy, with only 1/3 being optimistic
about the an economic rebound within 2 – 3 months
 Most of them are cutting back on spending and being careful on how to spend their money leading to
Overview of decreased spend expectations across categories, exclusive of household essentials and home entertainment
consumer
sentiment  Though they expect to consume more online entertainment and food delivery, they are less sure of large
shifts to online shopping
 Increased and new digital activities are being adopted across different categories since the start of
COVID-19

 Full time employment has been significantly reduced, with the highest impact over low income consumers.
Most of Colombians are currently working from home or not working, influencing habits and behaviors
 Three trends have been emerging in Colombia due to COVID-19 outbreak:
Emerging — Shock to loyalty: Consumers are more loyal to grocery stores than grocery brands. ~15% switched primary
behavior store, while ~55% switched brands. New selection based on proximity and product availability
trends — Changing the channel: Grocery purchase frequency and spending increasing in local supermarkets,
neighborhood stores and bakeries
— Healthy, safe and local: concerns with hygiene start to emerge promoting a shift to fresh, healthier and
locally sourced products. Eating in restaurants expecting to maintain the lower trend

Source: McKinsey & Company McKinsey & Company 3

Summary
Week 3 of restrictive measures in place (April 03-06)

 Colombians are concerned with the crisis and unsure about the economy, with only 1/3 being optimistic
about the an economic rebound within 2 – 3 months
 Most of them are cutting back on spending and being careful on how to spend their money leading to
Overview of decreased spend expectations across categories, exclusive of household essentials and home entertainment
consumer
sentiment  Though they expect to consume more online entertainment and food delivery, they are less sure of large
shifts to online shopping
 Increased and new digital activities are being adopted across different categories since the start of
COVID-19

 Full time employment has been significantly reduced, with the highest impact over low income consumers.
Most of Colombians are currently working from home or not working, influencing habits and behaviors
 Three trends have been emerging in Colombia due to COVID-19 outbreak:
Emerging — Shock to loyalty: Consumers are more loyal to grocery stores than grocery brands. ~15% switched primary
behavior store, while ~55% switched brands. New selection based on proximity and product availability
trends — Changing the channel: Grocery purchase frequency and spending increasing in local supermarkets,
neighborhood stores and bakeries
— Healthy, safe and local: concerns with hygiene start to emerge promoting a shift to fresh, healthier and
locally sourced products. Eating in restaurants expecting to maintain the lower trend

Source: McKinsey & Company McKinsey & Company 4

Uncertainty is the prevailing sentiment in Colombia, with 1/3 being
optimistic about the economic recovery
Confidence in own country’s economic recovery after-COVID-191
Percentage of respondents

Peru Colombia CAC Chile Argentina Brazil Spain Italy China

Optimistic: The economy will
rebound within 2 – 3 months and Apr 3-7 Apr 3-6 Apr 7-11 Apr 7-13 Apr 7-12 Apr 2-5 Apr 2-5 Apr 2-5 Apr 1-6
grow just as strong as or
stronger than before COVID-19 15 14
25 23
35 34 32
51 53
Unsure: The economy will be
impacted for 6 – 12 months or 45 54
longer and will stagnate or show
slow growth thereafter 54 59
57 57 56
45 45
Pessimistic: COVID-19 will 40
have a long lasting impact on 32
21 19
the economy and show 4 8 9 12 2
regression / fall into lengthy
recession
Early development and acceleration Late accumulation Recovery

COVID-19 development stage

1. Q: How is your overall confidence level on economic conditions after the COVID-19 situation?
Rated from 1 very optimistic to 6 very pessimistic; China: rated from 1 very optimistic to 5 pessimistic

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 5
Colombians are cutting back on spending and being careful on
how to spend their money
Overall sentiment in the general population of Strongly disagree / disagree Somewhat disagree / agree Strongly agree / agree

Colombia1
Percentage of respondents

I have been personally affected by the coronavirus (COVID-19) 44% 22% 35%

My income has been negatively impacted by the coronavirus (COVID-19) 16% 31% 53%

My ability to make financial ends meet has been negatively impacted 13% 29% 58%
by the coronavirus or COVID-19
My ability to work has been reduced by the coronavirus or COVID-19 13% 22% 65%

I am very concerned about losing my job 8% 22% 70%

Uncertainty about the economy is preventing me from making

4% 24% 71%
purchases or investments that I would otherwise make
I am cutting back on my spending 5% 20% 75%

Given the economy and my personal finances,

10% 89%
I have to be very careful how I spend my money 1%

1. Q: Please indicate how strongly you agree or disagree with each of the following statements. Please select only one response for each statement.
2. Measures difference in “strongly agree/agree” between current and last pulse

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 6
Most consumers expect a significant reduction in their income,
directly impacting their household savings
Reduce slightly / reduce a lot About the same Increase slightly / increase a lot

Household income1,2 Household spending1,2 Household savings1,2

% of respondents % of respondents % of respondents
4% 7% 5% 6%
18% 11% 12%
16%
48% 48%

78% 21% 20% 85% 82%

77%

31% 33%

Past 2 weeks Next 2 weeks Past 2 weeks Next 2 weeks Past 2 weeks Next 2 weeks
April 03-06 April 03-06 April 03-06

1. Q: How has the coronavirus or COVID-19 situation affected your (family) overall available income, spending, and savings IN THE PAST TWO WEEKS?
2. Q: How do you think your overall available income, spending, and savings may change in the NEXT TWO WEEKS?

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 7
… leading to decreased spend expectations across categories,
exclusive of household essentials and home entertainment
Decrease Stay the Same Increase
Expected spend per category over the next 2 weeks compared to usual1
Percent of respondents

Net intent2 Net intent2

Groceries 10 44 +33 Entertainment at home 20 25 +5
Snacks 45 16 -29 Books/magazines/newspapers 57 11 -46
Tobacco products 51 6 -45 Consumer electronics 80 4 -76
Food takeout & delivery 46 29 -29 Out-of-home entertainment 91 2 -89
Alcohol 69 4 -65 Petcare services 53 3 -50
Quick-service restaurant 63 12 -51 Fitness & wellness 79 4 -75
Restaurant 75 6 -69 Personal-care services 73 3 -70
Footwear 95 1 -94 Gasoline 76 2 -74
Apparel 85 2 -83 Vehicle purchases 86 1 -85
Jewelry 90 0 -90 Short-term home rentals 63 6 -57
Accessories 85 1 -84 Travel by car 91 1 -90
Non-food child products 25 15 -10 Cruises 91 0 -91
Household supplies 19 30 +11 Adventures & tours 94 1 -93
Personal-care products 16 19 +3 International flights 91 3 -88
Skin care & makeup 63 4 -59 Hotel/resort stays 95 1 -94
Furnishing & appliances 88 3 -85 Domestic flights 91 2 -89
1. Q: Over the next 2 weeks, do you expect that you will spend more, about the same, or less money on these categories than usual?
2. Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 8
Positive online spending intent is seen only for select categories
such as food delivery and home entertainment
Expected change in shopping channel per category over the next 2 weeks1 Household essentials
Axes show net intent2, bubble size relative to share of respondents that have purchased category in last 6 months Discretionary
Entertainment at home
In-store
10
Groceries
0
Personal-care products
Household supplies
-10 (e.g., soap, shampoo)
(e.g., cleaning, laundry)

-20 Snacks
Non-food child products
-30 (e.g., diapers)
Tobacco
Footwear
-40 Skincare & makeup
Alcohol
Fitness &
-50 wellness Entertainment
Books at home (e.g., Netflix)
magazines Food takeout & delivery
-60 Consumer
Furnishing & Apparel electronics newspapers
appliances Jewelry
-70 Accessories
-35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30
1. Q: And where do you expect you’ll buy these categories? Tell us if you will shop in the following places more, about the same, or less in the next 2 weeks.
Please note, if you don’t buy in one of these places today and won’t in next 2 weeks, please select “N/A” – did not ask this question for categories not shown
Online
2. Net intent is calculated by subtracting the % of respondents stating they expect to decrease shopping frequency from the % of respondents stating they expect to increase shopping frequency

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 9
Expected behavioral shifts to consumer media & news are
becoming more pronounced
Decrease Stay the same Increase
Expected change to time allocation over the next two weeks1
Percent of respondents
Net intent2

Movies or shows 15% 30% 55%

+39

+40

Video content 12% 35% 53%

+37

+41

Social media 12% 35% 53%

+34

+41

Reading news online 10% 38% 52%

+33

+42

Texting, chatting, messaging 11% 39% 49% +30

+38

Live news 14% 40% 46% +26

+32
TV 25% 41% 33% +25

+8
Video games 36% 33% 31% +14

-5
Working 34% 40% 26% -1

-8
Reading of fiction 32% 43% 25% -18

-7
Reading print news 51% 35% 13% -25

-38

1. Q: Over the next 2 weeks, how much time do you expect to spend on these activities compared to how much time you normally spend on them?
2. Net intent is calculated by subtracting the % of respondents stating they expect to decrease time spent from the % of respondents stating they expect to increase time spent

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 10
Colombians increasingly believe the personal & financial impact
from COVID-19 will last well beyond 2 months

Adjustments to routines1 Impact to personal/household finances2

% of respondents % of respondents
100
More than one year 4 More than one year 5%
7 – 12 months 11
~91% 7 – 12 months 15%
~88%
believe it will take 2+
4 – 6 months 31 of respondents
months before believe their finances
routines can be 4 – 6 months 36%
will be impacted by
returned back to 2+ months due to the
normal coronavirus situation

2 – 3 months 46
2 – 3 months 32%

0 – 1 month
0 – 1 month 9 No impact 10%
2%

1. Q: How long do you believe you need to adjust your routines, given the current coronavirus or COVID-19 situation, before things return back to normal in the country (e.g., government lifts restrictions on events / travel)?
2. Q: How long do you believe your personal / household finances will be impacted by the coronavirus or COVID-19 situation?
Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 11
Public health, family care & the economy are top concerns for
Colombians
Largest concerns of Colombia´s population related to coronavirus or COVID-191 Very concerned /
extremely concerned
Percentage of respondents who are very concerned or extremely concerned

Overall public health 85%

Taking care of my family 81%
The country economy 80%
Safety of me or my family 78%
Not knowing how long it will last 77%
Health of my relatives in vulnerable populations 74%
Negative impact on my job or income
Not being able to get the supplies I need 65%
72%
85%
Contributing to spread of virus 62% of Colombian´s are
very/extremely
My personal health 59% concerned about the
Not being able to make ends meet 55% overall public health
Impact on upcoming events 48%
Impact on upcoming travel plans 28%

1. Q: What concerns you most about the coronavirus or COVID-19 situation?

(not a concern; minimally concerned; somewhat concerned; very concerned; extremely concerned)

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 12
A substantial number of Colombians have tried new digital
activities since the start of COVID-19
Have you used or done any of the following since COVID-19 started1,2 Using more Just started using
Percent of respondents

Grocery delivery 61% 18%

Restaurant delivery 55% 15%
Meal kit delivery 60% 30%
Video conferencing for professional use 61% 24%
Virtual/video chat for personal use 60% 22%
Remote learning for me 62% 23%
Remote learning for my kids 64% 24%
Online media streaming 72% 9%
Tiktok 39% 47%
Playing online video games 62% 16%
Watching online video gaming 59% 18%
Online personal training/fitness 54% 23%
Digital workout bike or machine 64% 10%
Telemedicine for physical health 41% 45%
Telemedicine for mental health 37% 43%
Wellness app (e.g., meditation) 52% 23%

1. Q: Have you used or done any of the following since the coronavirus or COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items?
(just started using since Coronavirus started, using more since Coronavirus started, using about the same since Coronavirus started, using less since Coronavirus started)

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 13
Summary
Week 3 of restrictive measures in place (April 03-06)

 Colombians are concerned with the crisis and unsure about the economy, with only 1/3 being optimistic
about the an economic rebound within 2 – 3 months
 Most of them are cutting back on spending and being careful on how to spend their money leading to
Overview of decreased spend expectations across categories, exclusive of household essentials and home entertainment
consumer
sentiment  Though they expect to consume more online entertainment and food delivery, they are less sure of large
shifts to online shopping
 Increased and new digital activities are being adopted across different categories since the start of
COVID-19

 Full time employment has been significantly reduced, with the highest impact over low income consumers.
Most of Colombians are currently working from home or not working, influencing habits and behaviors
 Three trends have been emerging in Colombia due to COVID-19 outbreak:
Emerging — Shock to loyalty: Consumers are more loyal to grocery stores than grocery brands. ~15% switched primary
behavior store, while ~55% switched brands. New selection based on proximity and product availability
trends — Changing the channel: Grocery purchase frequency and spending increasing in local supermarkets,
neighborhood stores and bakeries
— Healthy, safe and local: concerns with hygiene start to emerge promoting a shift to fresh, healthier and
locally sourced products. Eating in restaurants expecting to maintain the lower trend

Source: McKinsey & Company McKinsey & Company 14

Full time employment has been significantly reduced, with the
highest impact over low income consumers
Employed full-time Self-employed / contractor
Work situation before COVID-19 and currently1,2
Employed part-time Unemployed, Retired, Student and housekeeper
Percentage of respondents

Full-time employment by income level1,2,3

16
28
Before 37
20 < $12,500 -27%
Currently 27
19
18 Before 45
$12,500 -

-20%
17 -21%
$19,999 Currently 35

Significantly less Before 55

45 > $19,999
36 -13%
people working full Currently 48
time jobs
Before Currently

1.Q: Which of the following best describes you currently?

2.Q: What was your employment situation before the coronavirus (COVID-19) situation?
3.Q: Which of the following categories best represent your family annual income (before taxes)?

Source: McKinsey & Company COVID-19 Peru Consumer Pulse 4/03 – 4/07/2020, N= 1,012, sampled and weighted to match Peru’s gen population 18+ years McKinsey & Company 15
Half of employed Colombians are currently working from home
Working from home Working outside Employed, but not working
Job situation during COVID-191
Percent of respondents

Employed Colombians +35 years

have the highest working from
42 home rate, while people
55 53
62 between 18-24 years have the
highest rate of employed but not
currently working
18

16 17
15

40
29 30
23

Total 18–24 years 25–34 years +35 years

1.Q: Which best describes your current job situation?

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 16
Consumers are more cautious about travel, with concerns both
international and domestic
Changing Habits – Travel Habits1 Strongly disagree / disagree Somewhat disagree / agree Strongly agree / agree

Percent of respondents

I have already cancelled travel plans 14% 15% 71%

I plan to use public transportation less (e.g., subway, bus) 13% 19% 68%

I plan to reduce air travel 13% 22% 65%

I will be cancelling future travel plans I’ve already made 12% 22% 66%

I plan to reduce my overall travel 11% 23% 65%

I plan to use ridesharing services less (e.g., Uber) 19% 23% 58%

I plan to reduce or eliminate my commute to work 20% 29% 51%

When traveling, I will look more for alternative accommodation 29% 38% 33%

When traveling, I will stay more in hotels 35% 37% 28%

I plan to travel more domestically 48% 27% 24%

I plan to travel more internationally 60% 25% 15%

1.Q: Please indicate how strongly you agree or disagree with each of the following statements. Please select only one response for each statement.

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 17
Consumers plan to adapt their entertainment and habits
prioritizing health and social distance
Changing Habits – Entertainment & social1 Strongly disagree / disagree Somewhat disagree / agree Strongly agree / agree

Percent of respondents

I will cook health food 3% 17% 81%

I will look for more entertainment options at home 4% 19% 78%
I will cook more 4% 19% 78%
I will meet friends & family by video 6% 17% 77%
I will reduce my attendance of big events 7% 17% 75%
I will exercise more 4% 25% 71%
I will study more 5% 24% 71%
I wil exercise at home (gym, yoga) 5% 25% 70%
I will start online courses 7% 28% 65%
I will look for digital entertainment options 9% 27% 64%
I will exercise mentally (meditation) 6% 32% 62%
I will spend less time meeting with friends & family 24% 25% 51%

1.Q: Please indicate how strongly you agree or disagree with each of the following statements. Please select only one response for each statement.

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 18
Consumers expressed their intent to reduce their frequency to
shopping malls and physical stores; Only half will shop more online
Changing Habits – Shopping1 Strongly disagree / disagree Somewhat disagree / agree Strongly agree / agree

Percent of respondents

I will reduce my frequency of trips to shopping malls 9% 22% 69%

I will reduce my frequency of trips to physical stores 11% 28% 61%

I will shop more online (website, app, etc.) 19% 29% 52%

I will order more for food / meal (home delivery) 17% 32% 50%

I will shop at home (the store sends me some models to choose) 18% 35% 47%

1.Q: Please indicate how strongly you agree or disagree with each of the following statements. Please select only one response for each statement.

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 19
Potential sustained lift for grocery; eating in restaurants preference
appears to maintain the lower trend
Decrease Stays similar Increase

Spend preference during Spend preference after

COVID vs. before COVID1, COVID vs. during COVID2,
Net Behavior3 Net Intent3

Dine in restaurant Consumers may not

-54% 9%
dine in restaurants as
Take out food from much, and are
-26% 8% increasingly buying
restaurants
groceries from
Ready to eat food from grocery stores
-10% 13%
restaurant delivered to home during COVID
Ready made food purchased
-17% 16%
from grocery stores
Groceries purchased
44% 34%
from grocery stores

1.Q: How has your spending per month changed during the COVID-19 outbreak compared to before the COVID-19 outbreak for each of the below items?
2.Q: For each of the following meal options, how do you expect your spending per month to change after the COVID-19 outbreak compared to now (during the COVID-19 outbreak)?
3.Net intent is calculated by subtracting the percent of respondents stating they expect to decrease spend from the % of respondents stating they expect to increase spend

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 20
Grocery purchase frequency and spending increasing in local
supermarkets, neighborhood stores and bakeries
Decrease Stays similar Increase

Change in grocery purchase frequency Change in grocery spending

% of respondents who visited each channel before COVID-19 % of respondents who visited each channel before COVID-19

During vs. prior1, After vs. during3, During vs. prior4,5, After COVID6, % of shoppers
Net reported behavior2 Net Intent2 Net reported behavior2 who plan to increase spending
Hypermarket -2% 32% 0% 45%

Local supermarket (market in the neighborhood) 60% 61% 53% 56%

Cash & Carry (e.g., Pricing Clubs) -25% -16% -22% 6%

Convenience store (e.g., gas station store, AmPm) -27% -4% -28% 14%

Neighborhood stores (e.g., Bodegas, Changarros) 40% 27% 35% 37%

Discount stores -19% 19% -15% 28%

Bakery 24% 40% 13% 40%

Apps (e.g., Rappi, Glovo, etc) -1% -9% 1% 16%

1.Q: Among the below grocery shopping channels, which ones do you visit more/less frequently during the COVID-19 outbreak compared to before?
2.Net behavior/intent is calculated by subtracting the percent of respondents stating they do/expect to decrease frequency/spend from the % of respondents stating they do/expect to increase frequency/spend
3.Q: Within the below store types, which ones do you think you will visit more/less frequently after the COVID-19 outbreak stabilize?
4.Q: Which store types have you increase your spending per month during the COVID-19 outbreak compared to before? (Percentage of consumers who have used each channel)
5.Q: Which store types have you decrease your spending per month during the COVID-19 outbreak compared to before? (Percentage of consumers who have used each channel, excl. those who increased their spend at a particular channel)
6.Q: Which store types do you expect your spending per month to increase after the COVID-19 outbreak stabilizes? (Percentage of consumers who have used each channel)

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 21
~15% of the consumers have switched their regular grocer mostly in
favor of stores closer to home; ~20% of them will not switch back

Reason for switching stores1, Post-COVID

85% of consumers are still % respondents who have switched stores situation

visiting their regular/ Closer to home 35

81% of
Changed to an online store/
primary store for grocery mobile app-based store
13 consumers
who switched
needs Offers better delivery service 10 stores are
Does not have competitive prices expected to
8 switch back to
on national brand products
their primary
15% of consumers have Out of stock of a lot of items 8
store
switched/ started going to a Store feels not to be safe/infection-free 7

different store Stocked out on their private brands 6

Offers better curbside or in-store
6
pick up service
Closer to work 4

Lack of good quality of fresh products 3

1. Q: Why have you switched from your regular/ primary store for your grocery store?

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 23
New store selection is based on proximity and product availability

Most important factor in choosing a grocery store

% selected as top 3 influential factor

57% 53%
31% 30% 28% 28% 22% 17% Ø 27
14% 12% 6%
Store location Stable Competitive Crowd levels / Robustness Stable Store is I can order Ability to shop Store is Stable
(close to availability prices on number of of cleanliness availability of open early in online before and pay without open until availability of
home or work) of fresh food branded people in store / hygiene packaged/ the morning going to store interacting with late at night private brands
products products practices in frozen food and pick up or staff
store and other non- get delivered
fresh products

Primary driver of in-store experience during COVID situation

% selected as top 3 influential factor

63%
44% 41% 39%
23% 21% 21% 20% 19% Ø 30
11%

Product Product prices for Availability of Store staff Promotions Proactive Transparent Availability of Able to shop Availability of
availability branded products hygienic services demonstrating communication communication of assistance without private brands
for in-store use cleanliness of store cleaning changes in what from store staff interacting
for customers practices procedures / the store provides with staff
policies
1.Q: What are the top 3 most important factors that will influence which physical store you do grocery shopping in during the next 4 weeks? Rank the top 3 only
2.Q: What have been the most important factors for creating a positive in-store grocery shopping experience during the COVID-19 outbreak?

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 24
~55% of consumers have tried a different brand due to product
availability; ~10% of them plan to stick with the new brands

Primary driver for switching to a new brand/product during Post-COVID

COVID1, % respondents who have tried new/alternate product brands situation

45% of consumers have 88% of

Brands that I usually purchase
not tried new/alternate were not available
43 consumers
product brands plan to switch
New / alternate options offer back to usual
23 brand after
better value (are cheaper)
COVID
55% of consumers have New / alternate options were
under promotions/ display
15
tried new/ alternate product
New / alternate options are
brands easier for consumption during 12
the COVID-19 outbreak
New / alternate options are
7
safer

1. Q: If yes, why did you switch from the brands you usually purchase to new/ alternate options?

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 25
Consumers have preferred fresh food under frozen and prepared
food during COVID-19 outbreak
Increased Same Decreased

Consumption during COVID-19 situation vs. Anticipated consumption after COVID-19 situation
before1, % of respondents who buy each item Net Inflow3 vs. during2, % of respondents who buy each item Net Inflow3
Eggs 71 21 7 64% 56 33 12 44%
Fresh foods 68 22 10 57% 61 32 7 54%
Household care 67 25 8 59% 49 36 15 34%
Dairy 60 30 10 50% 52 36 11 41%
Personal care 59 33 8 52% 47 41 11 36%
Household paper goods 56 36 7 49% 42 46 12 30%
Packaged food 49 31 20 28% 37 42 21 16%
Snacks 48 27 25 23% 37 41 22 15%
Deli meats 47 31 22 25% 41 42 17 24%
Bottled water 40 38 22 19% 34 54 12 21%
Beverages 40 34 26 14% 34 48 18 16%
Frozen foods 29 38 33 -4% 26 51 23 3%
Baby 27 60 14 13% 19 70 12 7%
Pet care 26 52 22 4% 21 66 12 9%
Food prepared in store 17 25 58 -41% 27 48 25 2%
Beer 16 36 48 -31% 20 56 23 -3%
Non beer alcoholic beverages 16 37 48 -32% 19 57 24 -6%

1. Q: How did you or your family’s spending per month change during the COVID-19 outbreak compared to before the COVID-19?
2. Q: How would you expect you or your family’s spending per month to change after the COVID-19 outbreak compared to now?
3. Net inflow is calculated by subtracting the percent of respondents stating they stop buying the item they have bought before during the outbreak from the % of respondents stating they only start purchasing the item during the outbreak
Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 26
Categories with stock-outs during the crisis should have
more likelihood of consumers trading down
Significant issues Some issues
To what extent did you face an out of stock of the following items
% of respondents with issues
Household paper goods 22 33 55
Fresh foods 14 38 52
Household care 17 33 51
Eggs 17 34 50
Dairy 12 34 46
Personal care 14 30 45
Deli meats 7 27 34
Packaged food 8 25 33
Food prepared in store 8 22 31
Frozen foods 5 23 28
Baby 6 22 28
Bottled water 6 21 27
Pet care 4 19 23
Snacks 3 19 22
Beverages 4 18 22
Non beer alcoholic beverages 5 9 15
Beer 4 10 14

1. For each of the following typical grocery items, to what extent did you face an out of stock/ lack of product availability issue during the COVID-19 outbreak? (Only applicable to items that consumers purchase during the outbreak)
Source: McKinsey & Company COVID-19 Colombia
mobile survey
Consumer Pulse 4/03 – 4/06/2020,
3/23/2020~3/25/2020 N = 1,500
N =Sampled
1,005, sampled
and balanced
and weighted
to matchtoKR
match
gen Colombia´s
pop 18-65 years
gen population
old 18+ years McKinsey & Company 27
Changes in preference during outbreak favoring locally sourced
products across all categories
Increased preference for locally sourced products during the outbreak
No change in preference during the outbreakd
Increased preference for products sourced from overseas during the outbreak

Changes in preference for locally- and overseas- sourced products during the outbreak vs. Net preference
prior1 , % of respondents locally sourced2, %
Fresh foods 62 32 6 56%
Eggs 61 35 5 56%
Dairy 59 37 4 55%
Deli meats 47 47 6 41%
Bottled water 47 47 7 40%
Household paper goods 44 49 6 38%
Personal care 43 50 7 35%
Household care 42 51 7 35%
Food prepared in store 42 51 7 35%
Beverages 40 53 7 34%
Packaged food 40 51 10 30%
Frozen foods 39 53 9 30%
Snacks 36 55 9 27%
Pet care 31 59 10 21%
Beer 30 63 7 23%
Baby 28 63 9 19%
Non beer alcoholic beverages 23 66 11 11%

1. Q: How did you or your family’s attitudes towards products’ country of origin change during the COVID outbreak compared to before the COVID outbreak?
2. Calculated by subtracting the % of respondents stating their preference for products sourced from overseas from the % of respondents stating their preference for locally-source products increases

Source: McKinsey & Company COVID-19 Colombia

mobile survey
Consumer Pulse 4/03 – 4/06/2020,
3/23/2020~3/25/2020 N = 1,500
N =Sampled
1,005, sampled
and balanced
and weighted
to matchtoKR
match
gen Colombia´s
pop 18-65 years
gen population
old 18+ years McKinsey & Company 28
Disclaimer

McKinsey does not provide legal, medical or other regulated advice or

guarantee results. These materials reflect general insight and best practice
based on information currently available and do not contain all of the
information needed to determine a future course of action. Such information
has not been generated or independently verified by McKinsey and is
inherently uncertain and subject to change. McKinsey has no obligation to
update these materials and makes no representation or warranty and
expressly disclaims any liability with respect thereto.

McKinsey & Company 29

Appendix
APPENDIX

Main sources and definitions

Consumer sentiment: McKinsey’s proprietary survey Surveys conducted in Colombia

 Financial pressures of consumers and spend trend
Main Sources
 Shopping behavior changes
 Spending intent variation by category and channel

Sentiment 100% Online Quantitative Survey (Males: 588 and Females: 417, 18+ years old)
Details Week 1: N= 1,005

Consumer sentiment: measured over weekends

 Week 1: Apr 03-06

Net intent: (% of respondents that declares intend to

Definitions increase spend) – (% of respondents that declares
intend to reduce spend)

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 32
Before COVID outbreak, consumers most frequent points of purchase
were bakeries followed by neighborhood stores
Very frequently (more than twice a week) Frequently (every week) Occasionally (once every two weeks) Rarely (once every month or less) Never, I don’t use this channel

Grocery purchase frequency before COVID-191

% of respondents

Hypermarket 16% 26% 30% 19% 9%

Local supermarket (market in the neighborhood) 33% 40% 20% 1%

6%
Cash & Carry (e.g., Pricing Clubs) 2% 16% 24% 52%
6%
Convenience store (e.g., gas station store, AmPm) 12% 16% 20% 24% 27%

Neighborhood stores (e.g., Bodegas, Changarros, Colmados) 34% 33% 18% 10% 5%

Discount stores 15% 23% 27% 23% 13%

Bakery 42% 27% 19% 8% 3%

Apps (e.g., Rappi, Glovo, etc) 9% 16% 24% 28% 23%

1.Q:Before the COVID-19 outbreak, how often did you buy groceries (i.e. products mentioned in previous questions) from each of the following grocery store types?

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 33
Promotions, stock availability and opening hours are the most
rated features for grocery stores mobile apps during COVID-19

Content preferences for grocery stores mobile apps during COVID-19 outbreak1
Percentage of respondents

65% 60%
53%
39% 36%
28%

Product promotions Accurate product Updates on store Changes of opening Tips to comfortably Updates on overall
stock availability opening hours / closing hours manage the COVID- coronavirus
and closures 19 outbreak while
staying at home

1.Q:What content would you find useful in your grocery store’s mobile app? (select all the alternatives that apply)

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 34
Colombian consumers prefer email and official channels to stay in
touch with stores and receive updates

Preferred contact method to receive store updates1

Percentage of respondents

Email 18

Official account of store on social media 17

Store’s official website 16

Store’s official mobile app 12

Flyer / newspapers 9

Online news articles 7

SMS 7

Direct mail 7

Newspaper articles 4

Elevator ads 2

1.Q:What is your most preferred method of being contacted by the store to stay informed about updates regarding your local grocery store?

Source: McKinsey & Company COVID-19 Colombia Consumer Pulse 4/03 – 4/06/2020, N = 1,005, sampled and weighted to match Colombia´s gen population 18+ years McKinsey & Company 35
Coronavirus COVID-19
Consumer insights
from Colombia
Results from consumer survey April 03-06, 2020
Updated: April 13th, 2020

Angela Samper
Carlos Buitrago
Juan Franco

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