If frugality is the new radical chic, it took a little longer to arrive in Germany.
"As a consumer I was surprised before Christmas that at least in Germany shopping hadn't seemed to slow down to the levels it had in some of the other markets," says Catherine Roche, managing director in the Dusseldorf office of The Boston Consulting Group.
"Maybe it was a little bit of 'Let's enjoy it now when we can because 2009 is probably going to be pretty grim,' " Ms. Roche says.
In the first three months of this year the level of anxiety has risen across the European Union.
"Pessimism is definitely here," Ms. Roche says.
In Germany, 57 per cent of respondents reported they were anxious about the future, an increase of 10 percentage points from the end of 2008. In France, 60 per cent said they were anxious, a 13 percentage point increase.
No country reported a decrease as Canada did.
"Everyone naively expects Canada to be in lockstep with the U.S.," Ms. Roche says. "When we first saw the numbers we were surprised that Canadians stacking up against other developed markets are more optimistic, more upbeat about their financial future. Certainly anxious, but not as much as we're seeing everywhere else."
In the EU, anxiety at its extreme emerges in Spain, where 84 per cent of the more than 1,000 consumers polled reported frayed nerves, up 45 percentage points from last year. Ms. Roche finds an explanation in rising unemployment, declining housing values and consumer debt.
"[Spanish] consumers were more in the mode of leveraging household debt than other markets," she says, a consumer trend that fed smack into a property bubble.
What she finds interesting is a deeper dive into the Spanish numbers. "If you ask consumers, despite it all, are you still happy with your life right now, they have the highest values of saying 'yes' to that question."
That doesn't mean they will behave in a way that companies would describe as happy.
Quite the opposite.
European respondents planning to cut discretionary spending in the next 12 months range from 59 per cent in France to 70 per cent in Spain. (And 64 per cent in Germany.)
Like Canada, the top non-grocery spending categories targeted for cuts are fashion and restaurants (including fast food). Unlike Canada, which places bottled water at the top of its list of targeted grocery cuts, Germany, Britain, Spain, Italy and France all place spirits and other alcohols in the top spot. Fifty-three per cent of French respondents say they have made spending cuts in the category.
Bottom of the list? Eggs.
The most resilient consumer segment? Young single men.
Forty-one per cent of Europeans say they won't go on vacation this year.
"The consumer who is out there in the marketplace now is spending more selectively than they ever did before," Ms. Roche says. "Consumers are scrutinizing their purchases, shopping around, comparing prices, looking for the best deals." And companies? "Companies say it's going to be a tougher sell these days."
Attitudinal changes can, however, be fleeting. "Anything that's painful to consumers - real austerity where they feel they have to sacrifice - is not, in the long run, sustainable," Ms. Roche says. "Not going on vacation this year is one thing. But forever? No travel? No indulgences? Clearly consumers can't keep that up."
Even now, at the close of a tough winter, consumers are looking for what Boston Consulting calls "spirit lifters" - small indulgences to "brighten the gloom," as Ms. Roche says. "All this pressure. Downturn. Downturn. Downturn. They're looking for small ways they can treat themselves that are still affordable."
METHODOLOGY
Research by The Boston Consulting Group is from a survey, completed in March, 2009, and conducted online among 1,100 Canadians, age 18 or older, who do the bulk of the shopping for their households. Global surveys, with matching questions, methodology and time frame, were done in 12 other countries. Canadian comparisons are to a previous survey completed in December, 2008.
Global shopping intentions
Per cent who agree or strongly agree
| Canada | U.S. | E.U. | Japan | |
| Cut spending on non-essential items | 57% | 81% | 72% | 87% |
| Defer major expenses that can wait | 64% | 82% | 74% | 69% |
| Buy more products on promotion | 66% | 75% | 80% | 70% |
| Spend more time around stores to find best prices | 59% | 71% | 71% | 61% |
KATHRYN TAM/THE GLOBE AND MAIL
SOURCE: THE BOSTON CONSULTING GROUP