What: McKinsey’s survey about grocery consumption in France, UK, Germany, Italy and Spain

Why is it important: During the pandemic, consumers changed the way they shopped for groceries and some of these new habits will stick

After a surge in online buying, a muted return to stores

Not everyone has liked their online grocery shopping experience and even the most satisfied European customers say they view online grocery shopping as a temporary measure and plan to return to physical stores. The availability of delivery slots—so that consumers can order and receive groceries when they need them—will be critical to staying competitive.

With so much time at home, a focus on health—but also fun

Cooking and buying fresh products have been prevalent behaviours during the COVID-19 pandemic. Up to 85% in some countries report that a focus on healthy foods is a “very important” consideration in their weekly grocery shopping. The shift is particularly pronounced among (but not limited to) younger consumers.

The offerings from retailers and CPG companies will need to evolve as well. That might mean helping customers find inspiration for healthy and fun meals that they can make from scratch.

Value critical for price-sensitive consumers

About 25% of survey respondents report that their personal finances have been negatively affected by the COVID-19 crisis. At the same time, consumers are expected to further reduce their spending on all categories except groceries—where they expected to spend more, with a net intent of +4%.

Price will continue to take priority over proximity when choosing a store, especially in households facing economic pressure. We may thus see a shake-up among grocery players as they battle for consumer loyalty. For retailers, that means that now is a critical time to invest in retaining their newly gained customers.

Gains by big brands—may not stick

COVID-19 pandemic has revived some large brands. In the first months of lockdowns, surveyed consumers in most European countries said they preferred well-known brands versus trying new, smaller brands. Availability was clearly a major reason as large CPG companies were able to keep up with demand, while smaller players struggled to make products available.

Over time, small brands are expected to return to their previous growth trajectory. Our survey results show that brand authenticity and provenance are increasingly important to consumers, and that will likely benefit the small brands.

A stronger sense of purpose

While healthy food is still the main priority for surveyed consumers’ grocery shopping, they are also conscious of the values and purpose of the brands they are buying. Early evidence suggests that the importance of social responsibility has accelerated for consumers. Survey respondents report strong intent to support local stores and brands that demonstrate care and concern for their staff and that use and promote sustainable solutions.

How European shoppers will buy groceries in the next normal