One year after the beginning of the pandemic, Moneris provides an overview of the compact of COVID on domestic purchases, and where Canadians and Quebecers have spent their money over the past year. Here are the highlights.
COVID-19 has caused Canadians to change their buying habits
The closure of several physical stores has prompted Canadians to shop online more frequently. And when Canadians made in-store purchases, they were more likely to use contactless payment, while doing less shopping, spending more per visit than before the pandemic.
The average amount of transactions increased by 11.7% in April as a result of containment measures and the limit increase to $250 for contactless payments.
In the third quarter of 2020, the number of contactless transactions increased by 32% compared to last year for credit and debit cards.
Where did Quebecers spend their money?
Consumer behaviour differs by province. In Quebec, the following categories have the largest increases:
- Quebec has the most gardening enthusiasts, with a 91% increase in the volume of sales in tree nurseries.
- Spending on bike purchases and maintenance increased by 32% in Quebec.
February to May 2020: immediate impacts
In April 2020, spending fell by 32% (the lowest transaction volume of the year), but recovered rapidly, reaching negative growth of -0.9% in September.
Canadians spent most of their money in grocery stores to buy toilet paper and kitchen items as they prepared more meals at home due to restaurant closures.
June to September 2020: summer spending
The tourism and hotel industries were strongly affected by the pandemic, with a decrease of nearly 62% in spending volume.
From June to September, the easing of national restrictions led to a change in spending behaviour. Instead, the money Canadians had put aside for international travel was spent on residential improvements and outdoor recreation.
- The spending volume for golf increased by 20% compared to last year
- Spending on bike purchases and maintenance increased 21%
- Pool sales increased 51% in volume
- Household and warehouse stores volumes increased 31%
- Household appliance sales went up 18%
- Hardware store sales volume went up 13%
October to December 2020: a grand interior
While the summer months were marked by increased spending on outdoor recreation, cooler October temperatures prompted Canadians to spend on interior renovation projects.
With more time spent indoors and travel restrictions, Canadians continued to spend their travel money on their homes.
- The interior design category dominated with a volume increase of almost 20% compared to the 2019 decline
- Fireplaces increased in volume by 22% in October
- Volume of appliances increased 27%
- Volume of furniture and decoration went up 20%
Just like before the pandemic, Black Friday was the biggest shopping day of the year, as Canadians were buying gifts for friends and family before the holidays.
Moneris processed nearly 550 transactions per second during the peak period of the day, about 100 transactions per second less than before the pandemic
New year, new spending trends
The New Year was marked by negative growth of 17% in volume, driven by a combination of limited post-vacation spending and increased pandemic restrictions.
As spending began to rise, trends starting in January 2021 indicate Canadians were preparing for a summer in lockdown.
- Boat rental volumes went up by 227% compared to January 2020
- Bicycle store sales increased by 87%
- Pool sales increased 80%
- Recreational and utility trailer sales increased by 68%
