Coronavirus: CBA report reveals what we’re buying during pandemic

Forget loo rolls – new research has revealed exactly what Australians are buying during the pandemic, and it won’t surprise anyone.

Alexis Carey

@carey_alexis

2 min read

March 31, 2020 - 5:40PM

Are Aussies financially prepared for this crisis?

Many of us are tightening our belts as the coronavirus pandemic rages on – but it turns out we’re refusing to cut back on one key area.

According to the latest Commonwealth Bank credit and debit card data, there has been an overall contraction in spending over the week to March 27 compared with a year earlier.

But there have also been “strong rises” in certain areas, including household furnishings and equipment, food – and alcohol.

Meanwhile, spending was “down sharply” on clothing, transport, recreation and personal care.

CBA said in a release that spending growth remains strong at supermarkets as households continue to stockpile as well as substitute food purchases from cafes, restaurants and takeaway shops with groceries.

Food spending was up 18 per cent compared to the same week last year, while food goods – which mostly includes grocery stores and supermarkets – was up by “a whopping 40 per cent on year ago levels”, although it is expected to ease as people stop stockpiling.

Food services, which includes restaurants and cafes, has plummeted to be down by 28 per cent – but spending on alcohol has “surged once again”.

“The big 34 per cent increase on year ago levels confirms the anecdotes that households have been stockpiling beer, wine and spirits,” CBA said.

“Spending on alcohol goods (ie bottle shops) is up by a staggering 86 per cent on the same week a year ago.”

However, the government’s stage one shutdown – which included the closure of pubs and clubs on March 23, has meant spending on alcohol services at those venues has plunged by 49 per cent.

Alcohol spend has defied the trend. Picture: CBA

Our alcohol spend has been redirected to bottle shops rather than bars and pubs. Picture: CBA

It comes as panic buying hit bottle shops across Australia earlier this month after rumours swirled that liquor stores could be deemed “non-essential” and ordered to close in a bid to contain the COVID-19 pandemic.

The confusion prompted a flurry of activity in bottle shops across the country, with shoppers in Sydney stores seen loading their trolleys with booze and social media users sharing snaps of the frenzy inside stores as customers frantically attempted to stock up.

The situation has also sparked lighthearted panic on social media, with many claiming their local BWS, Dan Murphys or First Choice Liquor was “essential” for them.

So far, bottle-os have remained open, although some states have introduced new restrictions on booze purchases.

Meanwhile, another growth area has been household furnishings and equipment, with card spend in this category accelerating to 26 per cent above year ago levels in the past week.

“It looks like a significant proportion of households plan to do some DIY work, maintenance and repairs around the house over the enforced shutdown period,” CBA said of the findings.

lockdown was just announced in Australia and people are swarming the bottle shops AHHAHAHHA pic.twitter.com/l4woI71DAI
— WarLust (@TheWarLust) March 22, 2020

There has been a “massive fall” in spending on clothing and footwear during the same period, with the category down by 44 per cent and that bleak trend set to continue given the number of retailers that have already closed their doors along with the major drop in foot traffic.

Spending on recreation – including accommodation, air travel and travel services – is also down by 26 per cent on year ago levels, while personal care spend – including beauty and barber shops and massage parlours – is down by 18 per cent.

Spending on transport, which includes public transport, was also down by 24 per cent due to the “large number of workers adopting to work-from-home over recent weeks as well as the reduction in activity and the movement of people more generally”.