The Summer of Distraction

Joanne was in the middle of online shopping for some new summer clothes when alerts about an assassination attempt started lighting up her phone. She quickly turned on the news and began scrolling through social media for more information. She never did get back to shopping, leaving her digital cart empty and abandoned. The following Monday, she found she couldn’t focus on her marketing job.

Corporate leaders have always worried about distractions—whether for consumers shopping, clients making business deals, or people working from home or the office. But experts say that the news lately has been overwhelming.

This week alone, the stock market seemed headed for a crash before recovering somewhat. That was on top of earlier news about a sitting US president deciding not to run for reelection, his predecessor surviving an assassination attempt, and constant updates on two wars. Even the Olympics have been a distraction, reportedly costing firms billions of dollars because of workers and consumers who are glued to TV or other screens. “Call it the summer of distraction,” says John Long, North America retail sector leader for Korn Ferry.

Certainly, the numbers show that the steady drip of headlines—about slowing job growth, rising unemployment, and the potential for a recession—has finally caught up with consumers. After buoying the economy for most of the last two years, consumers have been pulling back on spending this summer. In June, they spent $57 billion on goods and services, an increase of 0.3% from 2023. Just a few months ago, in March, those figures stood at $161 billion and 0.8%, respectively. 

Leaders are now concerned that the year’s second half will be subject to even more distractions. Even before July’s weak jobs report sent markets into a tailspin, several large retailers cited the negative news cycle as a key factor in a decline in both consumer spending and estimated sales and profits. Craig Rowley, a senior client partner in the Global Consumer Markets practice at Korn Ferry, says clients are bracing for a subdued back-to-school shopping season. And they’re already thinking about how the US presidential election in November could weigh on the holiday shopping season, he says—a period which accounts for about a quarter of annual profits. “Many retailers are not seeing sales pick up as they had hoped for the fall season and are closely watching consumers to anticipate what the holiday season will bring,” he says.

The distractions employees are feeling, both in the office and on the front lines, are having a major impact too, though it’s harder to measure. This week’s market news, for example, has naturally rattled workers who’ve seen their 401(k) plans wobble. Geopolitical tensions, meanwhile, have created unease between colleagues, prompting some leaders to call for an end to politics in the workplace. “The uncertainty of external news is taking the focus off business,” says Denise Kramp, a senior client partner in CEO Succession and Board and the Global Consumer Markets practices at Korn Ferry

To be sure, Long says, leaders need to step up efforts to refocus the attention of employees and customers. And that, he says, will come down to the quality of the employee experience. “There’s nothing you can prescribe to get rid of distractions,” he says. But a good employee experience will improve engagement—not only for employees with customers and clients, but also for customers and clients with products and employees. “Over time, that is how you create growth and get rid of distractions,” says Long. 

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