So the crown crisis has affected our buying behavior

Since the crown eruption, card purchases have decreased by 25-30 percent in Sweden, according to SEB private economist Jens Magnusson. This despite the fact that the vast majority of the population is still expected to have a job after the crisis.

– Many want to take into account the risks that may come in the future, but it is also because we are practically not out and we move so much, says Jens Magnusson.

But how was the money spent in Sweden redistributed during the crisis?

In statistics like SEB developed a DN based on customers’ credit card transactions, (see data box) It appears that Swedes only spent half as much money on transportation in March 2020, compared to last year. But the biggest difference was seen in travel, which fell 75 percent, while hotel and restaurant prices fell 55 and 24 percent, respectively, in March.

– In general, the changes are quite expected, says Jens Magnusson.

The more money was spent on food, where there was a 36 percent increase. Clothing sales in stores decreased by 25 percent in March.

– Store sales have fallen dramatically and the corresponding increase in e-commerce has not been offset, says Jens Magnusson.

He believes that some Changes can be lasting, for example in working life.

– Businesses may discover that there is time and money to save on bringing a business trip and managing more digitally. Working at home is also likely to be more common.

Even in the vacation industry, trends can linger when everyday life returns to a more normal situation, he believes. A sunny summer in Sweden may benefit local tourism even next year, while the desire to travel abroad may be greater than ever if the weather becomes worse, says Jens Magnusson. He notes that foreclosure in industries, where the travel industry is a prime example, can lead to price changes.

– If there is a cumulative demand, that is, a greater demand for travel, while several airlines and travel companies are not present, there may be substantial price increases, which can help make changes in consumption more lasting.

Student finances You are at risk of an explosion when the extra jobs and summer jobs in restaurants and cafes disappear. This, in turn, could lead to that particular group further reducing consumption, according to Jens Magnusson.

– More people are likely to expand student loans this fall.

The alerts that turn into layoffs and, therefore, an increase in unemployment can affect consumption in the long term, he says.

But Swedbank’s indications for the first two weeks of April, which are based on the categorization of card transactions, show even greater differences. Documentation shows that total consumption decreased by 25 percent during the weeks, counting supermarkets.

– From mid-March there is a clear and fast change. When the restrictions were introduced, there was a big difference in what we want to do, what we can do, and how we can do it, says Pernilla Johansson, senior economist at Swedbank.

Almost no money was spent on travel, in the category the reduction was 94 percent. At the same time, hotels and restaurants fell 48 percent.

– I think travel-related services such as flights and package travel will take longer to return after the crisis, says Pernilla Johansson.

Clothing and shoe sales fell more than half, 52 percent, including e-commerce. On the other hand, there has been an increase in pharmacy, hardware and consumer electronics products, according to Swedbank figures. Pernilla Johansson believes that some behavioral changes will persist after the crisis ends.

“We have gotten used to having Skype meetings and maybe think of extra time if we are going to travel,” he says.

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The Klarna payment service shows that The home and garden, food and drink and children’s products categories occupied a larger part of the portfolio than usual during the first two weeks of April. Viveka Söderbäck, who works on mapping consumer behavior in Klarna, sees that new groups have started shopping online.

– Those who previously purchased online have continued to do so. What we see is that those who previously bought less online have started buying more, for example, the elderly and residents in smaller cities, ”she says.

Viveka Söderbäck cree that the majority will return to how it was before the crisis.

– I am not one of those who believe that electronic commerce will take over completely. Physical stores play an important role, where we can pinch and feel and play a social role. However, I think groups that had not previously purchased online have now discovered the benefits and therefore continue, he says.

Postnord has asked consumers (see data box) how their purchasing behavior has changed since the outbreak of the corona virus. More than a third of Swedes, 36 percent, care about their private finances, and 84 percent care about the country’s economy. The survey shows that four in ten work from home and 80 percent spend more time at home. Nearly half say they buy more from convenience stores, and slightly more than half say they avoid physical stores.

At the same time, there was less e-commerce during March and the end of April (66 percent) compared to the year-on-year average (70 percent). Arne Andersson, an e-commerce advisor at Postnord, believes that the digital consumption pattern will increase in the future as a result of the crown eruption.

– But we probably also get used to shopping in a physical store because we sit inside all day. In the short term, I think a lot of people will go to stores in the future and then go home and order online. We are used to receiving home delivery, he says.

Every fifth consumer declares that during the crown crisis they refrained from buying a specific item. As many say, they did not buy clothes, shoes, furniture and furniture. 15 percent say they stopped buying home electronics. The survey also shows that more people want their products at the door and fewer want to pick up agents.