Coronavirus: Hardware, alcohol sales soar as grocery panic finds a high plateau

As consumers switch from essentials angst to looming boredom, hardware is booming and booze sales are up 86 per cent.

Shoppers queue outside Bunnings in Myaree in Perth. Picture: Getty Images

Consumers have turned their attention from panic buying toilet paper and consumer staples to stockpiling alcohol and DIY projects, Commonwealth Bank and ANZ consumer spending research shows.

Analysis of credit and debit card transactions revealed that although groceries and toiletries spending had fallen from its peak last week, spending remained 40 per cent higher than this time last year.

Conversely, bottle shop spending had increased by a “staggering” 86 per cent, confirming anecdotes of households hoarding alcohol, CBA data indicated.

CBA economist Gareth Aird said he expected the figures to ease in the coming weeks.

“As we’ve gone through each stage of the lockdown, there’s been a perception that bottle shops will close. That’s why we’ve seen people stockpiling, but that will probably be in the short term,” Mr Aird said.

“Spending at supermarkets and bottle shops will most likely settle in the coming weeks, but sales growth will remain higher than usual as people are unable to eat or drink at restaurants or pubs.”

Despite the $130bn stimulus package announced by the Morrison government, Mr Aird said retail spending was unlikely to bounce back in the short term.

“The change in spending we’re seeing is mostly about what you can and can’t do. It’s not the will to spend, but the way people can,” he said.

‘It’s gone from how can we survive in lockdown to how can we keep ourselves entertained’

Similar data released by ANZ Research highlighted that in addition to panic buying of alcohol, stockpiling had shifted to non-food retailers. Precautionary buying has now shifted to a broader preparation for lockdown, ANZ economist Adelaide Timbrell said.

People shopping in Dan Murphy's bottle shop in Manly Vale, Sydney. Picture: Damian Shaw

“We’ve calmed down a little bit on groceries, but we’ve really ramped up our spending on electrical retailing and hardware and garden retailing,” Ms Timbrell said.

“It’s gone from how can we survive in lockdown, to how can we keep ourselves entertained. That’s the real shift we’ve seen in the data.”

This included electrical retailer sales soaring by 59 per cent year-on-year in the week to March 20, and an almost 30 per cent increase in spending on hardware, building and garden supplies, reflecting the huge demand at homeware retailer Bunnings.

As expected, ANZ and CBA data demonstrated retail categories related to socialising experiencing a precipitous fall. Dining out and clothing purchases plunged 38 per cent, while footwear and accessories fell 28 per cent.

“We’re not dressed up with nowhere to go,” said Ms Timbrell.

However, despite many restaurants and cafes owners altering their operations to continue to serve, takeaway spending declined by 14 per cent.

Driven by the growth in groceries and toiletries spending, ANZ-observed retail spend remained 23 per cent higher year on year, despite plummeting spending in other categories.

The major effects were felt across Australia’s three largest states – New South Wales, Victoria and Queensland – with Victoria experiencing the heaviest blow, as dining out contracted by 40 per cent.