Financial Impact of COVID Drives Consumer Behavior

A recent analysis by Nielsen Insights focused on consumer behavior in the context of a continuing COVID pandemic.  Initially we saw panic buying by consumers focusing.  In recent months however this has shifted somewhat. As Nielsen notes:

“Shoppers have been primarily driven to make purchases based on health and safety concerns throughout the pandemic. However, a second layer of consumption behavior has been emerging from those experiencing (and anticipating) financial restraint.”

This behavior is especially important if we move to a second wave.

“Brands and retailers need to pay the closest attention to the newly constrained and cautious middle consumer groups. As the U.S. continues to face a recession, more Americans will join these groups and will look to recalibrate their shopping habits. Brands, retailers and manufacturers need to determine how to maintain their sales as the majority of consumers substantially cut back on spending and seek deals through various channels. This is particularly important in an environment where prices are inflated.”

To see the complete Nielsen analysis click HERE.

 

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