Have you thought about your shopping habits recently? For example, where do you do most of your shopping, when do you tend to shop, and how do you pay?
Interestingly, since the Covid-19 pandemic, shopping habits across the UK have changed considerably. Perhaps without us even realising.
So in this article we take a quick look at:
Sadly, many areas of the UK are seeing a massive decline in the traditional High Street. Many High Streets and shopping centres have as many empty premises as full ones. And of those premises still occupied, there are often fewer department stores, big names, and traditional shops, and more outlets such as snack bars, bargain stores and charity shops.
One of the reasons sometimes given for this is the high level of business rates paid by High Street shops. Even for big retailers, business rates amount to 42% of all the taxes they have to pay, according to PWC. So it is no wonder that many smaller shops can no longer afford to operate on the High Street.
But aside from the costs to the retailer, there is another contributing factor to the decline of the High Street, and that is the lack of footfall i.e. customers. And this is because our shopping habits are changing.
Around 48% of consumers say their shopping habits have been permanently changed by the pandemic, according to research by AlixPartners. The pandemic greatly increased the volume of online shopping and home delivery, and for many people this has now become the new normal.
Overall, in-store shopping has decreased by around 26% since the pandemic. The sectors most impacted by this are household, cosmetic and grocery sales, which between them have seen an in-store drop of around 8% overall.
Since Covid-19 there has also been a steady increase in the number of shopping apps being developed. Many retailers now actively encourage customers to use apps rather than traditional websites. So even the landscape of online shopping itself is continuing to evolve.
This increasing use of apps extends to food shopping as well. Younger consumers – 63% of consumers ages 18 to 29 and 51% of those ages 30-44 – are particularly likely to use delivery apps like Deliveroo, Just Eat and UberEats for both takeaway food and supermarket deliveries.
Overall, 80% of UK shoppers now use online shopping to some extent, and this is anticipated to rise to 86% by 2027. However, some shoppers do still prefer the High Street, saying they enjoy the experience of physical shopping and the more personalised experience.
Others have specific reasons for resisting online shopping, including:
So there are still a proportion of us hitting the High Street on an occasional or regular basis. But what are the most popular times to do this? Let’s take a look.
The busiest times for UK shops in most areas are usually between 12:00 and 14:00. Lunchtime and early afternoon shopping is their best trading slot throughout the day. This makes sense during the week, when people can take a quick break from work to get their shopping done.
But other areas, known as Saturday Peak towns and cities, have their highest footfall on Saturday, when they tend to be at least twice as busy than at other times. This indicates that some people are still going into town centres more at weekends than during weekdays. Interestingly, the number of towns and cities that could be classified as Saturday Peak has increased by 10% since the pandemic.
July and August are the busiest months for High Street shopping, particularly in places that could be classed as holiday towns; popular for tourists and for days out.
One of the biggest changes to emerge from the pandemic was the growth of contactless payment options. Around 60% of consumers who were previously unwilling to try new forms of payment found it necessary to do so during the pandemic. And 74% of those who first used contactless payments during the pandemic have continued doing so.
This has paved the way for other emerging payment systems, for example QR codes, biometrics and digital payments, which 93% of consumers are now willing to try.
The most common ways people in the UK now pay for their shopping when shopping online are:
The most common ways people in the UK now pay for their shopping when shopping in-store are:
For both debit and credit cards, the number of contactless payments is increasing, with 87% of people making contactless payments at least once a month
And even though there is an ongoing decline in the use of cash, it remains the second most frequently used payment method in-store.
We hope that the above information gives you food for thought, and inspires you to think about your own shopping and payment habits, particularly since the Covid-19 pandemic.
And if you need to shop for any major purchases in the near future, remember that Munzee offers loans over 24 months that may be able to help you to spread the cost..
Do check back in with us here again soon for more financial and lifestyle tips from Munzee.
Are January sales still a thing in the 21st century?