Invest
Consumers give insight into future spending
Aussie consumers are supporting local businesses, embracing digital technology and spending more time on discretionary items such as gaming, new research has revealed.
Consumers give insight into future spending
Aussie consumers are supporting local businesses, embracing digital technology and spending more time on discretionary items such as gaming, new research has revealed.
A deep dive into Australia’s purchasing patterns from leading buy now, pay later (BNPL) service provider Zip has revealed a glimpse of the social, economic and cultural shifts we can expect in a post-COVID Australia.
Peter Gray, co-founder and COO of Zip, said: “Zip’s retail spend data is showing us how consumer spending can be a powerful barometer of broader economic and societal change ahead of us.”
The BNPL COO explained there are extraordinary economic and social factors that are causing consumer behaviour to be incredibly dynamic – “We haven’t seen these sorts of swings in spending before, ever.”
While consumer spending is changing, Mr Gray highlighted the medium and long-term impacts for businesses.
“From what we are seeing, we would predict this is a sign of things to come, people returning to shopping small and local and moving away from the cash society we have been so accustomed to.”
“The insights from Zip’s report can help retailers and small-business owners understand what the world after COVID looks like, and how they can better position themselves to thrive,” Mr Gray said.
Winners from the COVID-19 pandemic
The $200 billion global gaming sector has been revealed as the biggest winner from the COVID-19 fallout as organisations surged due to people being stuck at home.
According to results collated by Zip, consumers spent 115 per cent more on gaming in April, following a 285 per cent spike the week lockdown began.
The data also revealed that online marketplaces saw a 93 per cent spike in sales as consumers who were unable to visit shops swapped their spending online.
Bike shops and hobby stores were also big winners, with Aussies spending 76 and 53 per cent more, respectively, on each item.
Losers from the pandemic
Not surprisingly, forcing Australians to stay at home for non-essential reasons has had a big impact on money spent on parking as well as fuel costs.
Zip’s research revealed a 66 per cent reduction in parking costs, while spending on petrol stations fell by 47 per cent.
Australians are becoming more health conscious, with ATM withdrawals falling by 53 per cent due to consumers wanting to avoid touching money.
Finally, the report noted that cafes and small businesses were adversely affected by COVID-19.
“Last month, Australia’s coffee shops suffered a serious caffeine hit. Allowed only to operate through takeaway and home delivery, spending at cafes in April 2020 was half what it was in April 2019, although still higher than other affected categories.”
“Like cafes, many hairdressers remained open in April but were forced to adapt with strict social distancing restrictions in place. The financial impact on hairdressers was also similar to that of cafes, with spending down 52 per cent,” Mr Gray said.
Other interesting trends in general spending:
- Lingerie retailers fell by 39 per cent
- Fruit and vegetables increased by 39 per cent
- Hardware stores increased by 44 per cent
- Home pools and spas increased by 28 per cent
- Nurseries and gardening retailers increased by 58 per cent
- Outdoor home improvement increased by 50 per cent
- Security and safety system installation increased by 269 per cent
About the author
About the author
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
