By Scott Rankin
In KPMG LLP’s second survey of 1,000 consumers conducted in June 2020, we found that as the country begins opening up for business, U.S. consumer sentiment is mixed, with many consumers changing their spending habits and feeling uncertain about the future. Survey participants in June had an overall more pessimistic outlook than those surveyed in April, with views varying widely across generations; younger generations were more optimistic about economic recovery than their older counterparts.
More than 30% of the June survey participants have had either a full or partial reduction of employment status as a result of COVID-19. However, more than half of those individuals have already returned to work. A good indicator of purchasing power may be household income. Both surveys consistently show about 40% of households are experiencing a reduction in income.
Below are some important findings from the June survey:
To succeed in the new normal, organizations may need to redefine their consumer approach. Accurately forecasting demand is very important with the uses of machine learning, finding the signals that matter at the store level. There is also a need to increase reach to key consumer demographics, and identify opportunities to improve price, promotion and discount structures. E-commerce platform integration may improve direct-to-consumer penetration and targeting, while applying advanced data and analytics may lead to greater efficiency and accelerate revenue across platforms, content and channels.
Scott Rankin is a principal and KPMG Strategy and Consumer and Retail leader. For more information or to arrange an interview, please contact Andreas Marathovouniotis.
Advisory Industry Leader for Consumer & Retail, KPMG US