A Blog by Jonathan Low

 

Mar 27, 2021

How the Pandemic Has Permanently Changed the Way People Shop

The most significant changes are in what is considered a necessity and how that has affected routines, which, typically, are difficult reverse once they have become ingrained habits. 

The result may result in permanent alterations to consumer behavior. JL

Shiavon Chatman reports in Ad Week:

Covid-19 has changed the way people shop—and what is considered a necessity. 46% of consumers remain uncomfortable with in-store shopping. Contactless payment and online shopping increased by 122% in the past year. New stores on the Shopify platform increased by 79% in 2020, accelerating the industry “by a decade.” The data reflects how our routines have changed while working from home.

More than a year into the pandemic, self-care is no longer just for Sundays.

Lockdowns and quarantines have led many to trade in matte foundations for liquid exfoliators and curling irons for clarifying conditioner. After a year of social distancing, virtual happy hours and Etsy pages dedicated to custom face masks, Covid-19 has changed the way people shop—and what is considered a necessity.

WFH habits are shaping retail sales

Ecommerce website Shopify, which houses more than 1.7 million merchants across the world, released a new report this week illustrating how these changes in shopping habits are remaking the retail landscape. The data reflects how our routines have changed while working from home, plus an increase in entrepreneurship and a consumer focus on small, local businesses.

To start, statewide social distancing mandates have led more consumers to seek out contactless and online shopping, as 46% of consumers remain uncomfortable with in-store shopping. Contactless payment and online shopping increased by 122% in the past year, Shopify reported.

“Consumers were not able to participate in in-person shopping over the last year, so it’s been really exciting to see people rallying around small businesses like those on Shopify,” Loren Padelford, general manager of revenue at Shopify, told Adweek.

Makeup and pants are out, and skincare routines are in

Because people are going out less and wearing more, makeup sales have plummeted. Face makeup sales, such as foundation, primer and concealer have dropped by 17% and lipstick and lip gloss sales have decreased 36% since last March. But while fewer people are buying makeup, more are investing in skincare and their health. Moisturizers sales have rocketed by 43% and vitamins by 23%. More people are taking an interest in hair care as well––clarifying products and hair masks have shot up 28%.

With a large number of Americans working remotely, opting for comfort over fashion has also taken over. Pants sales have gone down 67% and dress sales by 152% and with most meetings and interviews being held virtually––shirts, tops and blouses have increased sales of 60%. Most people are selecting more comfortable options, such as leggings––activewear sales have gone up 14%.

Two-thirds of adults have experienced elevated stress levels due to the pandemic, according to the American Psychological Association—and consumers seem to have responded by self-soothing. Candy and chocolate sales have increased and so have alcoholic beverages, especially spirits, with a rise in sales of 17% and 14%, respectively. Coffee sales increased as well, by 34%.

New stores on the Shopify platform increased by 79% in 2020, accelerating the industry “by a decade,” according to Shopify’s 2021 Future of Commerce report. As we begin to approach what could be the end of the Covid-19 crisis, Padelford said Shopify expects support for local and independent businesses to continue to grow.

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