Consumer spending online remains high despite Level 5 restrictions
Spending for Christmas continues at a steady pace despite Level 5 restrictions, as consumers revert to shopping online.
As footfall remains low and uncertainty of when restrictions will be eased remains high, retailers are moving to mitigate lockdown measures by implementing click and collect and delivery services.
According to the latest spending analysis from e-money provider Revolut – which is based on data from over one million Revolut customers in Ireland – the majority of purchases in Ireland are now made online. The figures offer an insight into how the latest level of restrictions has impacted on consumer spending.
The biggest impact from the recent lockdown, unsurprisingly, is another shift towards online shopping, which facilitated consumers to actually spend 1% more in October this year, than they did in 2019.
When shops reopened in the Summer, Revolut said consumers resumed buying in physical stores again in larger numbers, with just 30% of day-to-day purchases made online.
A shift to online retail
The latest shift to online shopping began on October 21 shortly after it was announced that the country was moving to Level 5 restrictions. As a result of this, consumer spending temporarily decreased by 5% in the week after level 5 restrictions. However, by the end of October, online and physical spending was equally split. This figure rose to 51% online on November 1, where it has remained since.
The pre-Christmas rush certainly contributes to this increase in online shopping, with many households unsure of how Covid-19 might affect the supply chain of certain goods and unwilling to wait until shops re-open.
Even with such statistics, certain retailers have been hesitant to embrace ecommerce during their busiest time of year as it may seem like a daunting process – a lifeline for these retailers is Mercury Order.
The SaaS product gives shoppers a fast and easy online ordering option with a same day set up for retailers. As this is a difficult time for many businesses, it is also the most cost-effective option with the lowest % per transaction charge on the market.
Another trend evident is that consumers outside Dublin have embraced online shopping more readily during this lockdown than they did first time around.
The fact that eCommerce has been more welcomed in the second lockdown when restrictions are not as extreme as the initial lockdown is an indication that consumer behaviours have permanently shifted. It would seem that it is simply not enough to solely offer traditional in-store shopping in this digitally competitive era.
Amid the ‘Golden quarter’ for retailers, with more than half of consumers now shopping online, have you done enough to capitalise on this and offer online shopping solutions?
Watch a free demo here for Mercury Order, or if you would prefer to speak with one of our team about your free demo or free set-up, call NI +44 28 7122 8820 ; GB +44 333 241 44 22; ROI +353 1 247 5294.
