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Marketing & Sales

US consumer sentiment and behaviors

during the coronavirus crisis

October 18, 2021 | Article

Amidst the Delta variant, US consumers exhibited strong optimism and

spend in July and August, driven by higher-income and younger
consumers.

G
iven the recent surge of the Delta variant, we will continue to track changes in

consumer sentiment and behavior as the next normal continues to evolve.

Consumer optimism and spending have

remained strong

High levels of optimism and spend through July and August, even as the Delta variant

spread in the US, have been driven by higher-income and younger consumers (optimism at
57 percent and 59 percent; spending growth of 11 percent and 15 percent year over year
relative to pre-COVID 19 respectively). Lower-income and older consumers are less

optimistic (optimism at 36 percent and 35 percent), and lower-income consumers in

particular are spending less (spend declined 9 percent year over year relative to pre-COVID-
19). While the intent to continue to splurge is less now than it was in February, it is still
strong among younger, higher-income consumers.

Trend 1
 Prev 02 — 05 Next

Omnichannel is ascendant and here to

stay

Even as consumers go back to stores, with 5 percent growth year over year in August, e-

commerce sales also continued to experience strong growth, rising by about 30 percent
year over year. This has meant elevated online penetration of about 30 percent higher than

pre-COVID 19. Omnichannel shopping is ascendant, with about 60 to 70 percent of

consumers across categories shopping/researching both in store and online and social
media in uencing up to 40 percent of consumers in categories like jewelry, accessories, and

tness.

Trend 2

Prev 01  — 02 Next
Disparate recovery across categories

Spend has been signi cantly elevated in several categories, including those associated with
the homebody economy (consumer electronics, home improvement), as well as pet supplies

and cosmetics. However, travel and out-of-home entertainment spending started to

decrease in July and August after a strong recovery in Q2, likely driven by concerns around
the Delta variant.
Trend 3

Despite increase in out-of-home activity,

consumers are cautious and embrace
homebody economy

Out-of-home engagement has increased since February, especially social activities, indoor

dining, and tness. However, a majority of consumers state that the Delta variant has caused
them to engage in out-of-home experiences either less or in modi ed ways. At the same
time, consumers, especially those working from home, have continued to change their home

environment and spend to improve it.

 Trend 4

Prev 01  — 03 Next

Loyalty shake-up continues

Consumers continue to change their shopping behavior, with three-quarters making some

change and about 40 percent switching brands. This dynamic behavior is magni ed among
younger consumers and higher-income consumers. When asked why they switched brands,
consumers indicate generational di erences as well: for older consumers, the reason is
value and availability, while for younger consumers, it is value and purpose.
Trend 5

These exhibits are based on third-party data provided in the United States between
February 2019 and August 2021, as well as longitudinal surveys conducted between March
2020 and August 2021. Check back for regular updates on US consumer sentiments,
behaviors, income, spending, and expectations.

ABOUT THE AUTHOR(S)

Tamara Charm is a senior expert in McKinsey’s Boston o ce; Janette Hwang is
a consultant in the New Jersey o ce; Jackie Laird is an associate partner in the
New York o ce, where Nancy Lu is a consultant and Jason Rico Saavedra is a
solution associate; Andrea Leon and Daniela Sancho Mazzara are capabilities
and insights analysts in the San Jose o ce; Anirvan Maiti is a data analyst in the
Waltham o ce; Kelsey Robinson is a partner in the San Francisco o ce; and
Tom Skiles is a capabilities and insights expert in the Chicago o ce

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