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How coronavirus has changed US shopping habits

According to a new study by McKinsey & Company, lockdown has shifted consumer behaviours, with digital marketplaces growing while brand loyalty diminishes.

International lockdowns and social distancing have forced most of us to change our day to day behaviours as far as contact with others is concerned.

This has had ramifications on the way we shop and has altered our consumer habits significantly. A new study by McKinsey & Company has looked into which of these changes are likely to stick even after the pandemic calms down, and the results indicate that Gen Z are adapting the quickest out of any demographic.

We’ve broken down the essentials of the report below to see just how extensively COVID-19 has influenced our day-to-day purchasing across the board. Many of the findings are what you’d expect, and you’ll probably notice you’ve been doing similar things yourself this year. Who hasn’t subscribed to a new subscription streaming service by now, let’s be honest.


Digital shopping booms during lockdown

To the surprise of absolutely nobody, digital shopping and online retail websites have seen huge increases in profits this year.

More of us than ever are now purchasing essential items such as medicines, groceries, household supplies, and personal-care products via the internet rather than in person. This is largely due to not being able to go outside for large portions of 2020, but most US consumers are reportedly eager to keep up their new habits even when lockdown and the pandemic subsides.

Online accessory purchases for makeup and jewellery are expected to grow by 15% this year, while essential item sales are set to increase by 35%.

Keep in mind that this doesn’t mean more actual product is being sold, just a larger percentage of overall sales are now digital rather than in person. Millennials are leading this digital shift, while Gen Z are apparently ordering more takeaways than ever before, which I can personally attest to.

Please don’t ask me how many drunken Uber Eats orders I’ve made in the last six months – it’s not pretty.


Consumers are switching brands more this year

While buying online has risen, switching brands and abandoning previous loyalties to trusted retailers has increased this year too. Over 75% of US shoppers have said they’ve tried new shopping behaviours as a direct result of economic pressure from COVID-19. 36% of consumers tried an entirely new brand, most likely to save cash during uncertain times.

Interestingly, Gen Z are the most likely to have swapped over to alternative companies and brands, which makes sense given its flexibility as a demographic.

Big, trusted companies have seen 50% extra growth this year and private brands also enjoyed a fresh wave of new customers. It seems more of us are keen to go for local or affordable produce that’s reliable and safe, rather than sticking with what we knew pre COVID-19.


Reverting back to trusted essentials

Speaking of reliable, 40% of US consumers have reduced their spending in general this year, opting to only splash out on absolute essentials. Bulk or value products have faired better than premium options, with more people avoiding excessively expensive items than usual.

This will largely be due to economic uncertainty and the widespread economic damage that the pandemic has caused. Many of us have lost jobs or taken pay cuts, with entire industries such as live music and theatre on the verge of going under. It makes sense that we’re largely avoiding big purchases we don’t need. Now probably isn’t the time to be purchasing fancy cars, houses, or other big expenditures.

We’ve seen some growth return to non-essential purchasing over the last few months as we better adjust, but spending is still down overall.

Gen Z steams ahead in the category of people still willing to purchase big-ticket items despite being hit hardest by job losses over the six months.


Streaming and at-home services are flourishing

We’ve recently written about how subscription services like Netflix, Apple TV, and Amazon Prime Video have all enjoyed huge growth this year, since everyone’s stuck indoors.

Other home products outside of just streaming have done well in 2020 as well though. Home fitness equipment sales are up, as well as office furnishings such as desks, lamps, etc. US consumers are changing how they spend time at home, relying more on entertainment indoors rather than going out.

73% of consumers said they’re still hesitant to resume normal activities in shared public spaces – suggesting that streaming will continue to do well for the foreseeable future.


Hygiene is the priority when shopping in person

Although more US shoppers are opting for online options, they’re going out to real shops when necessary. In these instances, consumers are particularly concerned about hygiene and personal safety – for obvious reasons. If you’re ever on public transport and you hear someone cough the tension is palpable these days.

Contactless payments, distanced grocery pickup services, and self-checkout options are all more popular than ever this year, mostly out of necessity. It’s far safer to pay for things by yourself at a distance than it is to interact with a shopkeeper.

79% of US consumers surveyed said they intend to continue or increase their usage of self-checkout after COVID-19 subsides and, unsurprisingly, Gen Z are the biggest adopters. Features like Apple Pay are excellent ways of keeping transactions as quick as possible.

It’ll be interesting to see how many of these new behaviours will carry over when we can venture back into shops without a mask on. Social distancing is still on people’s minds even ten months on from the initial panic.

Disney Plus will probably continue to thrive, Amazon will still be taking an insane amount of orders, and I’ll carry on ordering too many Uber Eats. At least for now I kind of have an excuse, right? Only time will tell if I can get my shit together.

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