An Ernst & Young survey has found at least seven in 10 Australians expect it will be months or even years before they are comfortable going to bars and pubs again. The results come as an expert medical board assesses an AHA proposal for pubs reopening.
The EY survey of 1000 people showed 58% of those surveyed expect another COVID-19 outbreak within the next six months.
EY chief economist Jo Masters said: “Relaxing of restrictions is a good first step towards economic recovery but EY’s Future Consumer Index shows that there is a level of cautiousness amongst the community, which means the road out will be slower and more gradual than we think.”
An AHA proposal for pubs reopening was passed on to a medical expert panel by the Australian government earlier this week.
It included a range of health and safety measures to protect both customers and staff.
Pubs are expected to reopen in the Northern Territory next week, with a push for other states with low transmission rates, including South Australia and Western Australia, to follow.
Permanent changes in shopper behaviour
Globally, EY’s Future Consumer Index showed cautiously extravagant consumers have a strong belief that there will be a global recession after the pandemic.
“However, while they are financially conservative, they expect to increase spend across non-essentials once the crisis is over,” EY said. “But 45% believe that how they shop will have changed permanently, and 38% say the same about what they will buy.”
By contrast, “Get to normal” consumers are determined that after the pandemic things for them will be the same as before. A third of them (33%) do not expect the crisis to have changed their lives on any dimension. Only 29% say it will have changed the way they shop, and only 21% what they buy. Most of them don’t expect to spend any more money than they used to.
Will there be an Australia-first wave?
Meanwhile, a survey by the Boston Consulting Group and market research firm Dynata found Australians are likely to remain frugal in their spending habits, even when COVID-19 restrictions are lifted.
“Australians feel that it’s important to be frugal at this time when they see a long road ahead of recovery,” said BCG partner Monica Wegner.
“This is despite a lower proportion of Australians being concerned about their personal finances compared to many developed nations.
“Consumers are also adopting a simpler lifestyle, so suppliers of luxury goods and discretionary products, like fashion, will suffer.”
The BCG survey, of 1000 adult Australians, was conducted between April 20 and 24. It also reported a jump in the percentage of respondents saying they prefer Australian brands, up from 23% in 2016 to 37% this year.
“We’ve never seen this,” Wegner said. “It could be part of an Australia-first wave. It’s as much about preference as it is about supporting locals and the regions.”
