Fearful and Frugal: Coronavirus Wreaks Havoc on America’s Shopping Psyche

As the United States reopens, Americans are not very interested in going out and spending.

A survey of 2,200 American adults shows how Covid-19 has dramatically changed behavior in the world’s largest economy, potentially in the long term. The data shows warning signs for recovery, showing diminishing interest in public events and material things like appliances and clothing, and a new austerity, expressed through the accumulation of pantry and purchases of large amounts of money.

This heralds an era of fear and frugality that could fuel a full economic rebound, one that Washington and Wall Street are waiting out of their reach. The data also casts doubt on how much increased consumer confidence will translate into spending, on which the economy depends heavily. And this survey, surveyed last weekend, doesn’t take into account last week when an increase in cases halted reopens in several states, which could deepen the behavioral impact of the pandemic.

“People generally express that they will do certain things less, or at home, on their own,” said Victoria Sakal, managing director of brand intelligence for Morning Consult, a partner at Bloomberg News in the survey conducted the last weekend in June. “There is also a health component to how people feel safe, comfortable, and protected.”

Americans, often stereotyped around the world as trusting to the point of arrogance, have developed a fear of closed commercial spaces. While about three-quarters of American adults feel good shopping at supermarkets or small businesses, more than half don’t feel safe inside a mall, the data shows. This only adds to the problems of shopping malls.

And that new preference for smaller retailers seems to have staying power: Even after the pandemic ends, nearly 30% of Americans say they plan to buy more from small businesses than before the virus.

“Small businesses have built people’s trust,” unlike shopping malls, Sakal said.

It’s not just shopping malls that make Americans more circumspect. When asked about their social plans after the economy completely reopened, more than half said they were not eager to go to a movie theater, sports event, concert, or show.

Bars, in particular, have lost their appeal, and half of US adults don’t even eagerly wait for a beer when the blockades are over. That apprehension comes amid a recent spike in cases involving drinkers spreading the virus. About 100 people were recently infected from just four bars in Minnesota, and another 100 cases are linked to a watering hole in Baton Rouge, Louisiana.

Americans seem less fearful of restaurants, but even then, about two-thirds say they would feel better about eating at a restaurant that required employee masks, new kitchen cleaning protocols, and separate tables.

These cautious attitudes mark a radical change for a country that is admired and ridiculed for its sometimes extravagant consumer culture. The United States invented the mall and the cinema, and it has eight of the ten largest sports stadiums in the world. But the coronavirus blockages have given rise to a new attitude: if you reopen it, they may not come.

Some of the doubts are economic. Americans became more frugal during the pandemic, according to the survey. In the past three months, 23% of respondents bought more generic items, 28% increased bulk purchases, and 41% chose to save more money by giving up a purchase. People also increased the price comparison, while suspending expensive and luxury shopping at a higher rate.

This savings could be here to stay, permanently changing the composition of the average American consumer, unlike the impact of the Great Depression on spending habits 90 years ago. More than three-quarters of consumers say they expect to increase their savings rate and financial conservatism after economies completely reopen.

The survey comes just days after the US government’s top infectious disease expert, Dr. Anthony Fauci, announced a “disturbing increase” in new cases, triggered by hotspots in Texas, Arizona, Florida and California. At the same time, New York and neighboring New Jersey, the original epicenters of the disease, had doubts about the speed of its reopens and delayed the return of food indoors. Meanwhile, cases in young Americans have skyrocketed.

However, when the blockades come to an end, it is the younger Americans who will be the first to emerge. The survey shows that 29% of Generation Z consumers are eager to return to restaurants, with about one in four excited about concerts and movies, more than any other cohort.

If they can afford to go out, that’s it. The study shows that when it comes to saving, Generation Z adults, ages 18-24, are most likely to be “definitely” more frugal after the pandemic.

That makes sense, according to Sakal. “Younger generations are more likely to have changed their purchases because of the greedy,” he said. “They have been more directly affected by the job changes and don’t have as much savings.”