Cautious consumer-facing companies anticipate episodic recovery
Consumer markets findings from PwC’s COVID-19 CFO Pulse Survey
Consumer-facing companies have been among the hardest hit, as mandated stay-at-home orders — combined with economic uncertainty — have brought consumer spending to a halt for all but essential products and services. It’s no surprise then that in PwC’s COVID-19 US CFO Pulse Survey, consumer markets (CM) CFOs report a higher level of concern than their peers in other industries, with 83% citing significant impact causing great concern, versus 74% in sectors overall.
Business as usual will take a lot longer
33% of consumer markets CFOs say they expect it will take 6 months or more, compared to 18% across all sectors.
If COVID-19 were to end today, how long would you estimate it would take for your company to get back to business as usual?
Consumer markets respondents
Total US respondents
Source: PwC COVID-19 US CFO Pulse Survey
April 8, 2020: Total base of 313; CM base of 46
April 8, 2020: Total base of 313; CM base of 46
Decrease in consumer confidence is a top-three concern
More CM CFOs (50%) said reduced spending resulting from a decrease in consumer confidence is a top-three concern, versus 39% in all sectors. Supply chain disruption is also top of mind for CM CFOs: 37% versus 21% for all sectors.
What are your top 3 concerns with respect to COVID-19? (Select up to three.)*
Consumer markets respondents
Total US respondents
*Highest-ranked choices from a list of 12 options.
Source: PwC COVID-19 US CFO Pulse Survey
April 8, 2020: Total base of 313; CM base of 46
Source: PwC COVID-19 US CFO Pulse Survey
April 8, 2020: Total base of 313; CM base of 46
Workforce challenges unlike any other industry
Consumer-facing companies run the gamut from consumer-packaged goods and retail to travel, hospitality and transportation. As consumers self-quarantine, some CM industry products and services are deemed essential and are in great demand, while there’s almost a complete lack of demand for others. As a result, some subsectors are rapidly ramping up their workforce, while others are considering temporary furloughs or permanent layoffs.
As a result of COVID-19, which of the following does your company expect to occur in the next month?
Consumer markets respondents
Total US respondents
Source: PwC COVID-19 US CFO Pulse Survey
April 8, 2020: Total base of 313; CM base of 46
April 8, 2020: Total base of 313; CM base of 46
CARES Act provides welcome economic relief
CM CFOs are more likely to take advantage of government programs such as the CARES Act (63%), versus 49% across all sectors.
Which of the following is your company planning on or considering taking advantage of? (Select all that apply.)*
Consumer markets respondents
Total US respondents
*Highest-ranked choices from a list of 9 options.
Source: PwC COVID-19 US CFO Pulse Survey
April 8, 2020: Total base of 152; CM base of 29
Source: PwC COVID-19 US CFO Pulse Survey
April 8, 2020: Total base of 152; CM base of 29
The way forward
Companies already prepared for digital disruption are in a much better position to handle the sudden, sharp shock of COVID-19, as consumers migrate online in an effort to shelter in place. This trend is expected to have lasting effects, necessitating business model transformation to stay relevant and meet consumers where they want to be: online.
