Fashion spending drops during lockdown, while homeware spikes

Purchases within the home and garden category spike during lockdown, according to a new report by payments specialist Klarna on British consumer purchases, while spending on clothing and shoes has dropped.

Klarna analysed purchases by shoppers in the Gen Z (ages 18–23), Millennial (ages 24–39), Gen X (ages 40–55) and Baby Boomer (55+) demographics over the individual weeks from March 9 onwards, as well as comparing overall spending across a base period from February 23 to March 23, the month prior to lockdown, and March 23 to April 23, the first month of lockdown, to see how UK consumer purchasing habits have evolved while under lockdown and as the Covid-19 outbreak continues.

The results revealed that spending on home and garden, health and beauty, leisure, sport and hobbies and children’s products have all risen.

Share of purchases within the home and garden category spiked from the week before lockdown (beginning March 16) and continued to trend upward week-on-week, helped by the good weather and the stay at home message. However, the last week in April showed a decline, which Klarna stated could be attributable to the onset of April showers and changeable weather experienced.

The health and beauty category saw spending rising rapidly as lockdown became a possibility, explained Klarna with spending up 14 percent between the week beginning March 16 and 23. Though, after an initial rapid increase, spending within this category has slowed, perhaps as a reflection of people socialising less and as such spending less time and money on beauty products, states Klarna in the report. However, the last week of April saw an increase in relative share of purchase of 17 percent, almost exactly equal to the decrease seen in home and garden as Brits retreated indoors.

Klarna reveals purchasing habits of UK consumers during lockdown

When it comes to fashion spending during lockdown, Klarna’s report reveals that while spending on clothing and shoes “spiked” in early March, increasing relative share of purchase by 8 percent between week commencing March 2 - 9 March as Brits got their fashion fix ahead of lockdown, the percentage of overall spending on fashion has decreased rapidly, dropping 15 percent between the week commencing March 9 and March 16, the week before social distancing measures fully came into place.

The report also revealed that Gen Z spending “has been moving away from clothing and shoes, it has done so at a slower rate than other age groups”. Meanwhile, the health and beauty sector saw an increase in relative share of 81 percent between March 9 and April 20 for this age group.

It is the Baby Boomer generation that significantly dropped its spending on clothes and shoes, with spending dropping 30 percent between week starting March 9 and April 20.

Luke Griffiths, general manager at Klarna UK, said: “Our week-by-week breakdown gives an unparalleled look into the shifting mindsets of consumers across the UK. It’s amazing to see how e-commerce purchasing habits have evolved significantly during the period of just a few short weeks.

“For retailers and brands, the data may indicate an early emphasis on leisure, sport and hobbies and health and beauty as consumers chose to buy comfort items to work from home in, as well as workout wear to keep them fit and exercising in their living rooms. The trend skews clearly towards consumers adapting to a longer period of lockdown and life at home in the summer, with the focus moving towards kitting out homes and gardens. Whilst the last week in April and the spell of wet weather saw further indoor activities being explored. Consumers are also taking advantage of flexible online payment options that offer greater control and can help them through this ‘stay-at-home’ period.”

Image: Pexels