4 major impacts of vaccination on US consumer spending

According to CNBC , about one-third of Americans have received at least one dose of the new crown vaccine , but even so, the pandemic will continue to affect consumers' mentality and purchasing behavior.

Consumers are still very concerned about health issues

Even with vaccinations, Americans' concerns about health and safety will linger. An analysis of a January survey of more than 7,000 consumers in nine countries by consulting firm AlixPartners showed that American consumers are most concerned about their health and finances.

According to the report released in early April, nearly a third of consumers in the United States said they were very or extremely concerned about their physical health, and about a quarter said they were very or extremely concerned about their mental health.

This consumer demand requires retailers to improve the safety and health of their products , such as stricter cleaning.

Online grocery shopping is here to stay

According to the AlixPartner survey, restaurant dining and travel will be the slowest to recover . Among American consumers who reported that their habits have been permanently changed , 30% said they plan to spend more on groceries, and 44% said they will spend less on dining out after receiving the vaccine compared to before the outbreak .

A report from the Mastercard Economics Institute shows that before the health crisis, about 7% of grocery shopping was done online , and this proportion is expected to rise to about 9% in the future . If this happens, the grocery industry will retain 70% to 80% of the online gains it made during the peak of the epidemic .

Young people are eager shoppers

Piper Sandler's 41st " Taking Stock with Teens , " a survey of teens and 20-somethings, reported that nearly 30% of upper-income female teens' wallets were spent on clothing, the highest level since 2013. Spending on handbags rose to $93 per teen, up 4% year-over-year.

Levi's CEO Chip Bergh told CNBC on Thursday that the pandemic has inspired a fashion trend where younger consumers want looser, wide-leg jeans instead of skinny jeans.

A survey of more than 15,000 people in nine countries by the IBM Institute for Business Value showed that once vaccinated, Generation Z is most enthusiastic about spending time with people outside of their family.

Contactless shopping continues to gain popularity

Over the past year, shoppers may have opted for options like curbside pickup out of safety concerns, and the convenience of that option will continue to keep consumers using it .

Retailers have stepped up investments to adapt to the demands of e-commerce. Best Buy is testing stores that devote more floor space to fulfilling online orders rather than displaying flat-screen TVs and smartphones. Walmart and Kroger have both announced plans to invest in automation to keep up with the growth in online grocery orders.

In summary, even if more and more people are vaccinated, e-commerce will still be one of the main channels for consumers' daily shopping.

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Consumer spending