For the first time ever online spending has overtaken physical spending according to new data gathered from Revolut. Since the start of November online sales now account for 51% of total consumer spend.
Revolut reported that just eight months ago in March online spending was at around 25%. Once the first phase of national restrictions occurred online spend rose quickly to 50% by the start of May. When shops reopened after the initial lockdown this unsurprisingly dropped to 30% for day to day purchases online.
If the restrictions are lifted in early December we will see another change in patterns with people going in store once again. However with online purchasing now more widespread than ever, bricks and mortar retailers must be concerned about what the new levels will be particularly with the challenge of high rents and overheads.
When we look at retail sectors it’s clear concerns around a “Cancelled Christmas” were real with toy retailers increasing sales to 166% of October levels last year. Bookshops, garden centres, furniture, hardware, pet stores, cycling and appliance stores have also seen a boost since this time last year.
The figures also back up the challenges the service and travel industries are having despite their best efforts at innovating and creating safe environments. Restaurants, bars and cafes spend is down 55% year on year and airline spend is down 81%. As doors remain shut and movies find new release models, cinema spend is down 95% compared to last year and taxis are down 58% as we restrict our movements.
Overall national consumer spending in October last year versus this year was 1% higher. The hope still remains for many businesses that December 1st will see many sectors reopen with a strong reminder to everyone to support local and buy Irish either online or in store where possible.
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Source : Revolut
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