Surge in toy and book sales as online consumer spending overtakes high street for first time

New data from online bank Revolut shows the effect of level 5 restrictions on our spending habits

A majority of consumer spending in Ireland (51%) is now taking place online

Irish consumers are spending more online than in physical shops for the first time, new data from Revolut shows.

The online bank, which has over 1m customers in Ireland, has been tracking their customer’s spending throughout the pandemic.

Their latest release shows e-commerce overtook high street spending for the first time in Ireland due to the introduction of level 5 restrictions, with a majority of consumer spending (51%) taking place online since November 1 - something that’s never been seen in spending data before.

This month's data also shows toyshops and bookshops are thriving as customers aim to get their Christmas shopping sorted early. 

Toyshop spending was up 166% compared to October 2019, while Revolut customers more than doubled their spend at bookshops this month, compared to the same period last year. 

In October 2019, Revolut users who spent money in toy shops forked out an average €44.95 during the course of the month. This year, that figure was almost twice as much at €81.42.

Revolut's weekly data also shows a sharp spike in spending in the two weeks immediately before level 5 restrictions were brought in, giving weight to reports of Christmas panic buying. 

Lockdown crisis sectors 

The data from Revolut also paints a vivid picture of the sectors who continue to struggle the most under Covid-19 restrictions. Unsurprisingly, the hospitality sector continues to take a significant hit.

Year-on-year consumer spending on hotels was down by 70% last month, while the “eating out” sector was down 55% compared to October 2019. The average monthly spend in restaurants in October was €54.09, compared to €82.94 in October 2019.

The transport industry also continues to suffer as a result of the coronavirus pandemic. Revolut customers’ spending on taxis was down by 58% compared to October 2019. Spending on airlines was 81% lower this October than a year earlier; as was spending on commuter trains.

Impact on spending

According to Sebastian Hamilton, the head of public affairs for Revolut Ireland, overall consumer spending dipped by about 5% in the first week of full lockdown (week ending October 31), compared to the week prior.

“This figure corresponds almost exactly to what we found when regional lockdowns were imposed on counties Laois, Offaly, and Kildare in August, and then on Dublin in September,” he said.

During the first Lockdown in March, Revolut said consumer spending moved “fairly rapidly" online.

“But, as shops reopened, people went back to physical shopping,” Mr Hamilton said, noting that online spending dropped back to about 30%.

During September, around 70% of our national spending was still being done physically, with just 30% on the internet.

However, the introduction of level 5 restrictions on October 21 saw spending moving sharply online once again. By October 30, internet shopping was again at 50% of all spending, and on November 1, for the first time, more consumer spending was carried out online than in person. It has stayed ahead of physical shopping since then.

"So the questions for retailers and policy-makers are these: where are Irish online consumers buying from - Ireland or abroad? And when lockdown ends, will they go back to shops for a second time... or have they made the jump to online shopping for good?"