Shopping online or by smartphone is now by far the most popular method of buying goods in the UK, according to a new study.
Over two thirds (70 per cent) of Brits said that browsing and purchasing goods online or via their phone was now their favourite way to shop, with more than half stating that their online shopping had increased since the start of the pandemic, Reuters reported.
However according to Credit Karma, which surveyed over 1000 UK adults to gauge their shopping and banking habits post-pandemic, this boost in spending is also impacting Britons’ financial health.
More than a third said their finances had taken a hit since they started spending more online, with a further 60 per cent stating they had begun using ‘buy now, pay later’ schemes during or after the pandemic.
“Healthy consumer spending, online or otherwise, is generally a sign of a healthy economy, which can be great for the market,” Credit Karma’s general manager for UK and Canada Ziad El Baba said.
He added: “shopping online can make the act of purchasing an item much less tangible for shoppers, making it easier for them to spend more than they would if they were shopping in a traditional brick and mortar store.”
It comes as the pandemic driven online boom continues to ease, with online retail sales dropping a further 9.3 per cent in August marking the fourth consecutive month of decline.
While the UK’s ecommerce sales decline slowed slightly from July’s fall of 9.6 per cent, August’s performance was still well below the six and 12-month averages of 2.25 per cent and 21.37 per cent growth.
Capgemini’s managing consultant Lucy Gibbs commented: “Interestingly, this was mainly driven by a 7.3 per cent drop for multichannel retailers, with online only retailers actually recording a growth of 1.7 per cent in August compared to July.”