Consumer confidence concerns further dampen outlook for consumer-facing companies

Consumer markets findings from PwC’s COVID-19 CFO Pulse Survey

Despite a continuing shift online, consumers still want the assurance of a safe physical environment as the recovery unfolds. In response, consumer markets (CM) companies are implementing safety measures at higher rates than companies in other industries.

View additional survey results:

US Consumer markets findings - April 13, 2020

Lack of consumer confidence continues to be top of mind  .  .  .

66% say a decrease in consumer confidence and related spending is a top-three concern versus 50% two weeks ago.

What are your top 3 concerns with respect to COVID-19? (Select up to three.)*

April 8 Consumer Markets
April 22 Consumer Markets
Decrease in consumer confidence reducing consumption
%
%
*Highest-ranked choice from a list of 14 options.
Source: PwC COVID-19 US CFO Pulse Survey
April 8, 2020: Total base of 313; CM base of 46. April 22, 2020: Total base: 305; CM base 44

.  .  .  translating to adverse revenue projections

32% project an adverse impact on revenue and/or profit of at least 25% in 2020, versus 24% across all industries.

What impact do you expect on your company’s revenue and/or profits this year as a result of COVID-19?

All industries
Consumer markets

Decrease > 25%
%
%
Source: PwC COVID-19 US CFO Pulse Survey
April 22, 2020: Total base: 305; CM base 44

Deciphering customer demand via technology 

Tech tools are a top-three supply-chain-planning priority to better understand changes in customer demand (41% vs. 30% for all sectors).

As a result of COVID-19, in which of the following areas are you planning changes to your supply chain strategy? Please select the 3 most pressing areas.*

All industries
Consumer markets

Extend tools to better understand customer demand (e.g., changes in desired mix of offerings, triggers to place orders)
%
%
**Highest-ranked choices from a list of 10 options.
Source: PwC COVID-19 US CFO Pulse Survey
April 22, 2020: Total base: 305; CM base 44

Back-to-work safety measures underway

86% are planning workplace safety measures (vs. 77% for all sectors) including 77% reconfiguring work sites to promote physical distancing (vs. 65% for all sectors).

Which of the following is your company planning to implement once you start to transition back to on-site work?*

All industries
Consumer markets

Change workplace safety measures and requirements (e.g., wearing masks, offering testing to workers)
%
%
Reconfigure work sites to promote physical distancing
%
%
*Highest-ranked choices from a list of 10 options.
Source: PwC COVID-19 US CFO Pulse Survey
April 22, 2020: Total base: 305; CM base 44

The way forward

While grappling with immediate challenges, CM companies are also concurrently shoring up their digital presence in response to accelerated online demand that could last well beyond the recovery.

 

Contact us

Steve Barr

Consumer Markets Leader, PwC US

Eric Shin

Consumer Markets Tax Leader, PwC US

Ron Kinghorn

Principal, PwC US

Melissa Palmer

Consumer Markets Assurance Leader, PwC US