Share of shoppers in the United States who have increased or decreased digital spending since the coronavirus pandemic as of May 2020, by age group
It is no lie that online shopping has spiked in consumer trends since the Coronavirus pandemic, but by how much? This research helps break down the digital spending between generations and how much it has increased and decreased since the pandemic as of May 2020. In this research, we looked at Gen Z, Millennials, Gen X, and Baby Boomers to get a better sense of digital spending.
Taking a look at the bar graph above, we notice the largest increase in digital spending at the start of the Coronavirus pandemic was, by no surprise, the Gen Z population with a 65% increase. Close behind Gen Z was the Millennials at a 63% increase and Gen X at 60%. The generation that increased the least out of all were the Baby Boomers who still had a 47% increase.
COVID-19 was a difficult time for many around the world. This time was also specifically rough for businesses and their consumers as we had to fully rely on digital spending as a way to meet a lot of our necessary needs. Many people turned to online grocery shopping as a way to avoid grocery stores. Most places completely shut their stores doors for in-store shopping leaving consumers no option other than to online shop. The forced transition to online shopping is why we see such an increase on these digital spending percentages. Many today have become comfortable to the online shopping aspect and still continue to do so today barely having to leave their home.
With digital spending during COVID-19 increasing, we also see a shift on what consumers are spending their money on. During the pandemic, a lot of people had a decreased disposable income making them budget what they have and only spending it on certain necessities.
As we can see from this graph, groceries/food for home spending increased by 17%. This category was the highest increase out of all the others by a long shot. There was not much to spend money on since going out was not an option, so turning it and spending it on groceries and food was the way to go. We also see meals at restaurants decrease by 27%, this is not surprising as during this time restaurants were closed for dine-in and take-out was the only option. Many restaurants struggled to keep their doors open even after the pandemic. We also see the same thing with personal care services such as hair salons with a 19% decrease because hair salons completely shut down their services.
The spending that decreased the most was jewelry and accessories both decreasing by 35%. We can see from the research that consumers were very cautious with their spending during the pandemic, making sure they spent their money on necessities.
COVID-19 has forever changed the digital spending of many consumers around the world. We still continue to take advantage of online shopping websites such as Amazon. Target is continuing and growing their drive up and order pick up options, and many grocery stores are still going strong on their online grocery store pick up and delivery.
- Note: This article is a class assignment for BUS 462 — integrated brand promotion and advertising at NCSU Poole College of Management.
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