What have our spending habits been like during the last year?

Card transactions from Monese customers were analysed to see how Covid-19 restrictions affected the nation’s spending habits over the last 12 months.

March 2020 to March 2021 has been a year unlike any other, but despite being ‘locked down’ for the majority, UK residents still managed to spend 16% more versus the previous year, with online shopping transactions soaring by 80%. Online spending peaked in December 2020.

Mobile money app, Monese took the opportunity to see just how much the nation’s spending habits were impacted by Covid-19, by analysing the card transactions of its customers, and comparing these to the previous year.

Did our spending habits change?

Across all commercial categories, the week that card holders spent the most was 6^th December, with 25% more cash being splashed than any other week in the year. In contrast, the week the nation spent the least money was 12^th of April, with 24% fewer pounds being paid out.

Key dates that affected consumer spending the most:

• 23^rd March: First full lockdown is announced. All non-essential shops are closed.
• 15^th June: Non-essential shops can reopen.
• 4^th July: Pubs and restaurants reopen.
• 13^th July: Beauty salons, nail bars and tattoo shops reopen.
• 3^rd August: Eat Out to Help Out is launched.
• 31^st October: Second national lockdown is announced.
• 2^nd December: Second national lockdown ends.
• 26^th December: Non-essential retail closes.
• 4^th January: Third national lockdown is announced.

Where we spent more money during our ‘year in lockdown’:

• Paint and DIY suppliers (we spent 184% more £s)
• Digital audio books, movies, and music stores (+178%)
• Digital games stores (+168%)
• Stationery and office supplies shops (+142%)
• Car washes (+142%)
• Lawn & garden suppliers (+137%)
• Courier services – Hermes, DPD etc (+131%)
• Pet shops (+113%)
• Veterinary practices (+112%)
• Computer equipment and software stores (+106%)
• Postal services – Royal Mail (+103%)
• Motorcycle dealers (+101%)
• Jewellery and watches retailers (+98%)
• Convenience stores – food (+96%)
• Cleaning services (+91%)
• Sports clothing stores (+76%)
• Musical instruments and sheet music shops (+71%)
• Utilities – electricity, gas, water suppliers (+69%)
• Car body repair shops (+68%)
• Bicycle shops (+68%)
• Specialist home furnishing shops (+68%)
• TV streaming service providers – cable, satellite etc. (+68%)
• Sweet shops (+60%)
• Off licences – Beer, Wine and Liquor stores (+58%)
• Grocery stores & supermarkets (+51%)
• Fabric and haberdashery stores (+47%)
• Craft shops (+46%)
• Toy and hobby shops (+40%)
• Second hand shops (+40%)
• Men’s and Women’s clothing stores (+35%)
• Pharmacies (+31%)
• Fast food restaurants (+21%)
• Sporting goods stores (+16%)

On average, households spent 184% more on DIY and items for the home, taking their estimated total investment to £7,458¹. The top two peak weeks for DIY spending were later in the year; 22^nd November (during the second national lockdown) followed by 16^th August.

Across the nation, 51% more was also spent at the supermarket, taking the average ‘lockdown year’ total to a massive £4,868² per household. The peak weeks for supermarket spending were 20^th December and 6^th December, although the biggest annual increase occurred during the week of 1^st March 2020, when 87% more was spent on groceries than during the same week in 2019. The second biggest annual increase took place during the week of 15^th March 2020, when 47% more money was spent at UK supermarkets.

In the home, utilities bills grew by 69%, taking the estimated per-household cost to £2,178³ this year.

Utilities spending jumped 56% year-on-year from the week of 26^th April 2020 – one month after the first national lockdown began. This higher utilities cost continued for the rest of the year, suggesting that working from home is coming with a hefty cost.

Where we spent less money in our ‘year in lockdown’:

• Cinemas (we spent 81% less £s)
• Theatres (-66%)
• Tourist attractions and exhibits (-59%)
• Bars, night clubs and pubs (-56%)
• Gyms & sport /country clubs – membership (-53%)
• Train tickets (-49%)
• Book stores (-41%)
• Amusement parks (-36%)
• Professional sports club – football season tickets etc (-36%)
• Airlines (-32%)
• Travel agencies & tour operators (-28%)
• Car rental (-27%)
• Dry cleaners (-27%)
• Band/concert/comedy show tickets (-25%)
• Bus tickets (-23%)
• Hotels (-16%)
• Barbers & hair/beauty salons (-6%)

Spending on airlines was at its lowest during the week of 5^th April, as was spending at barbers and beauty salons.

Alongside transactional insight, Monese also looked at how its customers have been using its spending pots feature. More than three times as much money was put into Monese saving pots in the ‘year in lockdown’ versus the previous year, with the average saver doubling the value of their pot.

Norris Koppel,Founder & CEO at Monese added: “I think we are all hoping that we’ll never have a year quite like that one again – it’s been tough for everyone. It’s been particularly tough for households who have seen their income reduced, and some of their day-to-day living expenses – on things like groceries and utilities – go up. 

“It’s reassuring that some of our customers have been able to save more though, with those using our pots feature typically doubling their ‘rainy day’ funds.

“As we start to see the end of this long tunnel of restrictions, we hope to see some return to pre-Covid spending in areas such as restaurants and bars, hotels, barbers and beauty salons and theatres and cinemas.”

Additional Sources

1. In 2019, the average household spent £2,626 on DIY (https://www.statista.com/statistics/1115340/annual-diy-spend-in-the-united-kingdom-by-city/) During the lockdown year, we estimate this increased by 184% to £7,458.
2. In 2019 the average UK household spent £3,224 on groceries each year (https://www.nimblefins.co.uk/average-uk-household-cost-food). During the lockdown year, we estimate this increased 51% to £4,868.
3. In 2019 the average UK household spent £1,289 on utilities (https://www.ovoenergy.com/guides/energy-guides/the-average-gas-bill-average-electricity-bill-compared.html). During the lockdown down, we estimate this increased by 69% to £2,178.