The latest version of Deloitte's Global State of the Consumer Tracker survey reveals that although more consumers may feel more comfortable visiting their local store, they're increasingly concerned about how they'll pay for their purchases.
According to the survey, which was conducted Oct. 29-Nov. 5, 61 percent of adults say they feel safe going to the store, a sharp uptick from the 31 percent low seen in April. A spike in demand for leisure travel is also being seen as the holiday season approaches.
However, 29 percent of survey respondents said they were struggling to make upcoming payments. Among adults age 18-34, that number reached 46 percent. Another area of financial concern is that 61 percent of survey respondents said their expenditures were as much or more than their income.
"As we saw earlier this year, health concerns and spending are closely intertwined. Consumers are beginning to feel more comfortable with resuming some activities of pre-pandemic life despite a third wave rising in the U.S. With the expiration of stimulus funding and continued unemployment levels, financial concerns are on the rise. Overall discretionary consumer spending is also likely to be restrained. Increasingly, the average consumer will be looking to contactless commerce, convenience and bargains throughout the remainder of 2020," says Stephen Rogers, executive director, Deloitte Insights Consumer Industry Center.
The pandemic has had a rippling effect on household budgeting and finance, while also increasing consumers' willingness to pay for convenience.
According to the survey, 41 percent of respondents said they're willing to pay for convenience to get the things they need. This is primarily driven by protecting health, saving time, and reducing stress, in that order.
At the same time, 29 percent said they plan to cut back on clothing purchases and restaurants over the next month.
For tens of millions of Americans each year, the holiday season has traditionally meant boarding an airplane and flying to visit relatives. The pandemic ground most air travel to a halt, but it's starting to pick up again as the holidays approach. Nearly one-quarter of those surveyed said they plan on taking a domestic flight for the holidays this year, with 13 percent planning on flying internationally. Additionally, 45 percent of US travelers reported feeling safe in a hotel, which is up from 19 percent on April 9.
"Months of weathering a global pandemic are taking their toll on the actual and perceived financial health of many Americans. Six in 10 Americans say they're spending the same, or more than their current income. These concerns have obvious implications for retailers, restaurants, hoteliers, airlines, and a host of other consumer-oriented businesses. As we look at a recovery, there are signs of pent up demand, and it's important that consumers continue to feel safe, if we are to return to a semblance of normalcy," says Anthony Waelter, US Consumer Industry Lead and advisory practice partner, Deloitte.
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