The pandemic has changed our spending habits significantly. For some, this was enforced as their financial situation became more precarious. Meanwhile, for others, being locked down altered their spending habits too. But how exactly have spending habits changed in the last two years?
Online shopping
Online shopping has grown dramatically in popularity over the last two years. Indeed, in 2019 internet sales made up just 19.1 per cent of total retail sales in the UK. However, by January 2021 that figure rose to 37.8 per cent. Even though it’s settled at 27.1 per cent now, it’s clear that online shopping has still grown significantly. This change is mostly due to the pandemic. As people have been locked down, they’ve had to rely on internet shopping, and even as society opens back up this habit has been hard to shift.Â
Mindful shopping
Another shift is to be found in consumers shopping in a more mindful manner. With COP26 raising awareness about environmentalism as well as Marcus Rashford’s school meals campaign, consumers are more knowledgeable about social issues. This has resulted in consumers looking to limit their food waste as well as shopping more health consciously. On top of this, shopping for local produce has grown in popularity as consumers look to limit their toll on the environment.
How people have saved
One of the main ways that people have saved is through discounts. This can take the form of introductory discounts when you first join a service, but there are also excellent discounts available for specific groups in society. NHS discounts are one of the most prominent examples of this: many businesses and retailers offer NHS staff a special discount to recognise their vital service in society.
Limited opportunities to spend
The limited opportunities to spend over the last two years has also seen many households build up their savings. In fact, in early 2021 savings reached their second highest level on record. Some economists believe that this will eventually result in a boom in spending as households use their savings. But it’s also possible that this is a new spending habit where families carefully look after their savings. If there does turn out to be a boost in spending, it’s unclear whether this would power a return to retailers selling more goods in person, or whether online sales will continue to grow.Â
Our spending habits have changed significantly over the last two years. Consumers are now saving more money, but when they do spend it’s increasingly happening mindfully online. Discounts have been an effective way of saving money and it’s well worth looking to see if you could benefit.
