Has COVID-19 Changed our Spending Habits?

Introduction

In this article, we are going to be discussing COVID-19 spending habits.

The use of cash is declining quicker

The amount of cash being used was decreasing before the coronavirus lockdown and the coronavirus pandemic has only sped this up. Customers are now using card or contactless payments more to avoid or reduce physical contact.

We are doing more online shopping and local shopping

This may not come as a surprise for most since online shopping was becoming more and more popular before COVID-19. This is very worrying news for high street retailers who may struggle to bounce back if online shopping becomes the norm.

More consumers are now shopping in more local stores. There are a couple of reasons for this which include:

• Supporting local business
• Purchasing authentic and artisan products

We have also been wasting fewer foods and making more ethical and environmentally friendly decisions when purchasing products. With the majority of consumers saying that they would continue with this after COVID-19.

We are spending more on our homes

With more households now spending more time than ever in their homes, many are deciding to spend money on home improvements. There has been an 84% increase in online shopping for home and materials (Data from Virgin Money).

We are spending more on home entertainment

With COVID-19 restricting many of us to our homes. Many people are now spending more on home entertainment including baking, cooking, TV, gaming, and music.

Conclusion

To conclude, consumers are reducing spending on certain leisure and entertainment such as restaurants, and cinemas, etc. We are now spending more money on grocery shopping, local shopping, home improvements, and home entertainment. Many of these spending habits are likely to become the norm even once the COVID-19 pandemic has ended. COVID-19 has also sped up trends such as increasing numbers in online shopping and less use of cash.

How can we help? 

At Hawsons we have a dedicated team of retail, wholesale, and ecommerce accountants at our offices in Sheffield, Doncaster, and Northampton.

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