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The twin crises of a global pandemic and the ensuing economic recession have shuttered tens of thousands of businesses across the US and left millions of workers filing for unemployment.
With social-distancing measures still in place, companies have had to pivot quickly to survive, especially as financial strains lead consumers to tighten their purse strings. According to the Federal Reserve, the amount of consumer revolving credit, which comprises mostly credit card loans, shrunk by an estimated $24 billion in May 2020 after reaching a record high in February 2020, an indication that people were paying down their balances and staying cautious about racking up more debt in these uncertain economic times.
Customers are now looking for more ways to save, focused on purchasing essential items and increasingly shopping online, according to a survey by PwC. For example, demand for everyday items such as non-perishable groceries and household and cleaning supplies are up by 27% and 25%, respectively.
These cautious new behaviors are sticking around. In a recent survey by McKinsey & Co., 71% of US consumers polled said they believed it …read more
Source:: Businessinsider – Finance