Across the globe, consumers plan to reduce short-term and mid-term spending, especially in nonessential categories. As the coronavirus outbreak has spread and its humanitarian impact has grown, retailers have stepped up their efforts to provide consumers with essential goods and to protect the health and well-being of the communities they serve. Leads McKinsey’s Global Retail and Consumer Packaged Goods Practices and works with retail and consumer-goods companies to guide growth, commercial... Becca Coggins Senior Partner, Chicago. Healthy, safe, and local. by Stephanie Chan, Mahima Chugh, Felix Poh, and Simon Wintels Discretionary spending in some retail categories plummeted by as much as 90 percent at the peak of COVID-19 lockdown efforts aimed at easing the spread of the virus. At the beginning of 2020, the global private-equity industry had an estimated $1.5 trillion in dry powder, Retail. hereLearn more about cookies, Opens in new Our consumer research indicates that these initial shifts could persist in the very near term—though it remains to be seen how the restrictions that some governments have placed on store openings and order deliveries might further influence consumer behavior. McKinsey & Company è una società internazionale di consulenza manageriale. McKinsey: 75% of Americans have changed brands during the pandemic. Please click "Accept" to help us improve its usefulness with additional cookies. And respondents in all four countries said they were likely to increase their online spending on a wider variety of items. “US consumer sentiment during the coronavirus crisis,” March 2020; “Spanish consumer sentiment during the coronavirus crisis,” March 2020; “Italian consumer sentiment during the coronavirus crisis,” March 2020; “UK consumer sentiment during the coronavirus crisis,” March 2020. In the post-COVID-19 tight credit market, we expect that synergy capture expectations, and track record, will matter to investors, which makes it even more important to think through synergy ambitions and value-capture plans up front. Smaller, more specialty players are less likely to flourish, as they are more often weakly capitalized and may lack the breadth and depth of e-commerce capabilities—or the financial muscle to build them—required to profit in the short to medium term from shifts in consumer spending. COVID Response Center. 3 reasons why COVID has changed the way we shop, perhaps forever According to McKinsey & Company—which has been surveying 1,000-plus U.S. consumers ages 18 and up on a weekly, ongoing basis since March 16—while discretionary spending categories including travel, out-of-home entertainment, apparel and footwear, and home furnishings are down, shelter-in-place directives and social distancing have caused American buyers to spend more in a … Subscribed to {PRACTICE_NAME} email alerts. In discretionary-goods categories, retailers are trying various delivery-related promotions to boost sales. Serviamo le principali aziende, istituzioni e organizzazioni non profit a livello mondiale. Gli esperti di McKinsey hanno analizzato l'evolversi del Covid-19 nel mondo incrociando i dati economici con quelli scientifici più accreditati sulle caratteristiche della malattia. The US, Europe, Australia, the Indian subcontinent, Southeast Asia, Latin America and Africa are now deep in Phase 2 of our three-phase model for retail’s response to Covid-19. The Content is not intended to be a substitute for professional advice or to constitute medical or legal advice. Consumer intent, of course, varies by individual economic situation and outlook. For me personally, juggling the joys of homeschooling my teenage boys with a packed work schedule has been a true personal test. For more detail analysis of consumer sentiment, please see McKinsey’s global survey of consumer sentiment during the coronavirus crisis. solidation, leaner retail formats, direct customer access, and alternative sales models. The first step to redefining M&A and partnership strategy is to understand what the next normal means for each brand and retailer. our use of cookies, and Reinvent your business. Driving unique in-store experiences will become even more critical than it has been to drive traffic, facilitate the omni-experience, and improve profitability. Strong brands that acquirers can leverage to build out unique business models may be especially attractive targets. cookies, global survey of consumer sentiment during the coronavirus crisis, in the retail sector that will have lasting impact, our recent article on the impact of COVID-19 on the sector demonstrates, In Asia and the United States, but less so in Europe, McKinsey_Website_Accessibility@mckinsey.com, Most AF&L companies (62 percent) saw negative TRS (versus 21 percent of the S&P 500), and only 15 percent of AF&L companies achieved TRS greater than 10 percent (versus 46 percent of the S&P 500), our latest State of Fashion outlook beyond COVID-19. Some retailers have temporarily moved their office workers into distribution centers to perform jobs like operating forklifts, in addition to hiring associates from discretionary-goods sectors, where demand has tapered off. The period of … Overall, we expect the crisis to lead to further consolidation of marketplaces and platforms. The authors wish to thank Marius van Roekel for his contributions to this article. In the AF&L sector, recent analysis indicates bifurcation of the market with respect to price positioning. We’ve seen some companies reassign current employees to have more capacity in nondiscretionary categories where goods are selling fastest. One noteworthy shift has been an abrupt swing in purchasing patterns. A leading mass retailer is working closely with its third-party logistics providers and staffing agencies to screen temporary workers and accelerate hiring so that it can reduce the risk of infection and ensure the continuity of essential business operations. Ceux qui sont parvenus à se développer l'ont fait soit en ligne, soit grâce à l'Asie-Pacifique. Moreover, the lessons from this challenging time can help retailers make their supply chains more resilient. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Flip the odds. Something went wrong. This may create opportunities for the largest retailers to expand their geographic reach and generate backend synergies. McKinsey Quarterly COVID˜19: The next normal for German retail banks 3 Changes today will become the “next normal” The financial crisis of 2008-2009 had a huge impact on the financial industry, businesses, and consumers around the globe. The coronavirus crisis is first and foremost a humanitarian crisis. The next crisis might be no less surprising, but the right plans can keep it from causing as much disruption. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. That might call for shortening store hours to create enough time for thorough cleaning and giving workers extra training in how to avoid infection. We use cookies essential for this site to function well. Help Main Street View the interactive map to find local businesses selling gift cards and products or services online. Loyalty shock. Something went wrong. The contents of this site, including any statements, articles, graphics, charts, checklists, and other materials (“Content”) are for informational purposes only. Banks will play a critical role in this for their customers, their employees, and for the economy at large. We use cookies essential for this site to function well. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. COVID-19 stellt neben dem deutschen Gesundheitssystem auch die deutsche Wirtschaft vor große Herausforderungen. We also envision that a potential economic crisis will make it more important to carefully think through how a deal can help to sharpen and/or reposition the joint entity’s value proposition(s) to better service customers’ needs. McKinsey descrive le tecnologie in campo, dai sensori per gestire i flussi in tempo reale alle modalità contactless per mantenere pulite le superfici. 2 Min Read. The most likely are the leading ecosystems and larger FD&M companies with strong e-commerce positions that focus on essentials or well-performing brands, play in subsectors less affected by the crisis, and enjoy some combination of relatively low financial leverage, access to investment-grade debt, and a cash-heavy balance sheet. L’épidémie de coronavirus a engendré des changements radicaux dans notre comportement d’achat : les consommateurs réévaluent leurs habitudes et décisions en matière de consommation. For example, one of North America’s leading retailers is actively deploying inventory across the network to regions with the biggest product-availability deficits. But, McKinsey Digital says that Covid-19 has allowed them to see the Achilles’ heel of artificial intelligence (AI) and analytics. Read more: Retail won't snap back. McKinsey Global Institute. The Content is not intended to be a substitute for professional advice or to constitute medical or legal advice. This approach puts shipping speed ahead of product variety at a time when many consumers would rather have adequate supplies of key items than a wide assortment. Declining sales of nondiscretionary goods, on the other hand, have put pressure on the cash flows of retailers that sell or specialize in these items. Salesforce BrandVoice ... the workforce completely according to a just-released study by McKinsey and Lean ... altogether with their additional home responsibilities due to COVID. 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