Discretionary Spending in 2020: What People Buy During a Pandemic
This year not only ushered in a new decade, it welcomed a novel virus that doesn’t appear to be leaving us anytime soon. With concern for our individual health, as well as the overall economy, underscoring all of the decisions we now make, it only follows that shopping practices in 2020 have changed significantly over the past few months. Our priorities and resources are simply different now. Due to social distancing mandates in most U.S. cities, Americans are staying in instead of venturing out. We’re cooking our own meals, entertaining ourselves at home and, thus, finding new ways to spend our money. Here are some of the surprising (and not so surprising) products we’re buying:
Grooming Supplies
Human, not animal. Apparently the closure of salons and barber shops has caused us to resort to our own grooming measures. Shaving products, clippers and hair dye are all scarce commodities.
Luxury Cooking Items
Luxury fashion might have hit a snag this year, but sales of expensive cooking gadgets are skyrocketing. As we continue to stay home for meals, our interest in cooking has intensified, prompting us to try out bread makers, electric skillets, sandwich presses, pasta makers, juicers and more as we entertain our inner Julia Child.
Home Improvement Projects
Although many of us continue to face economic uncertainty as a result of COVID-19, there still exists a great percentage of people who are stuck at home and noticing projects that need to be tackled. 70% of Bank of America customers say they are undertaking some type of home renovation over the next year and into 2021.
Essential Items
This is hardly surprising. Hand sanitizer, toilet paper, bleach and other cleaning products, gloves and food staples such as pasta, flour and rice continue to dominate our grocery lists. And with many areas of the country returning to more stringent social distancing policies after the loosening of them saw an increased incidence in COVID-19 infections, it’s likely many of these essential products and similar items will remain in high demand. In a world that’s so unpredictable at the moment, people want to know they at least have an adequate supply of necessities readily at hand.
Other, expected items include:
Entertainment Systems, Streaming Services and Games
We want to be entertained, after all; if we can’t go out to dinner or to a movie, we are purchasing items that can amuse us at home instead. Suppliers of puzzles, board, card and video games and streaming services have all seen an uptick in sales as we rush to find ways to pass the time.
Pets
Similarly, animals are also in high demand, as need for companionship has driven more and more people to animal shelters in search of a new friend.
Freezers
This harkens back to the stock of essential items a lot of us are hoarding. With the increased spending on food to cook at home, many of us need a place to store it. Hence a dearth of freezers.
Of course, the effects of COVID-19 will eventually recede and life will return to (a new) normal. But it’s naive to assume there won’t be a lasting impact on American shopping trends. In the future, businesses will need to carefully research their markets, paying particular attention to consumer insights, as they plan for life after the pandemic.
