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3 Ways COVID-19 is Shaping Consumer Behavior




Culture

In just a matter of weeks, the novel coronavirus introduced radical changes to our way of life — fundamentally reshaping notions of humanity and of our industries. We’ve seen it disrupt the way we work, the way we think, and the way we buy. As the pandemic continues, these patterns will further unfold. While the ultimate impact is still largely unknown, it is important we make strides to begin our understanding as to how we can navigate today and prepare for the future.

Foursquare, set out to determine some of these transitions. In the most recent report, ‘How COVID-19 Is Influencing Real World Behaviors.’ unpacked some of the data behind what we’re seeing and the impetus driving these shifts. Emerging from the findings are three major themes where behavioral changes fall including shopping habits, travel, and entertainment. Let’s unpack these a bit further against some of the data:

SHOPPING HABITS

People turned away from brick and mortar stores well before they were instructed to close and a state of emergency was declared by the government. This was underscored by a sharp decline in mall visits going back to the middle of February. These were down 61 percent nationally per the report from the week ending February 13 to the week ending March 27.

Quick service restaurants (QSRs) are also reporting less foot traffic — unsurprisingly — for many of the same reasons. On a national scale, visits to casual, sit-down dining places recently dropped over 73 percent while fast-food restaurants reported an 18 percent decline.

When people are popping in to pick up food, they’re spending fewer than 15 minutes. This applies to 63 percent of visits as recorded in late March compared to mid-February where 57 percent of pick-ups took 15 minutes on average. When it comes to choosing a QSR, most aim to stay closer to home traveling 5 miles or less from their homes. They’re also opting to place their orders upon arrival versus ahead of time.

ENTERTAINMENT

The steep fall of visits to QSRs and casual dining spots coincides with more traffic for grocery stores. While urged to practice social distancing, more people are eager to use free time not spent shopping, dining out, visiting friends or family, to put efforts in honing their cooking skills.

As liquor stories are still deemed ‘essential’ sales shot up 55 percent nationally in the third week of March compared to the same time a year ago, according to Nielsen. This was the same timeframe states including New York were ordered to ‘shelter in place.’ The week ending on March 21 saw a decline, however, indicating most are turning to consume what they’ve already stockpiled.

Movie theatres and banks are also reporting declining foot traffic with more people streaming shows and films from their homes and conducting their banking online when possible. Nationally, theaters saw a drop of 75 percent from the week ending February 19 to March 27 and banks saw a 13 percent dip as of late March.

TRAVEL

With travel advisories in place across the country, gas stations including Exxon and BP are showing declines of 7 to 8 percent.

Instead, people are using Zoom to catch up with friends and family. The company has added over 2.22 million monthly active users so far in 2020. For comparison, in 2019 1.99 million users were welcomed, according to new estimates from Berstein. When they’re not video conferencing, they’re finding new fitness routines with visits to gyms down 64 percent as a result of COVID-19 and are eager to stay fit while practicing social distancing.

A good number are also using this downtime at home to roll up their sleeves and tackle their spring cleaning and household projects. Foursquare reports that trips to well-known hardware stores like The Home Depot and Lowe’s are up 27 percent nationally.

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