The economic recession caused by the coronavirus pandemic has had a truly dramatic effect on the way people spend money, reshaping the current landscape industry by industry.
With millions of people around the globe being ordered to stay at home and many companies closing doors to stop the spread of the coronavirus, consumer spending has generally slowed. However, customer behavior is changing and people redirect their spending to new services and products.
According to the Yelp Coronavirus Economic Impact Report, which measures interest by category, some companies are thriving. “The coronavirus is rapidly reshaping every corner of the global economy, and Yelp’s data reflects this in real time,” wrote Carl Bialick, editor of the company’s data department.
One significant change reported by Yelp is what consumers eat. “It seems that restaurants specializing in the takeaway and food delivery companies have survived the crisis better than the food companies who a month ago were focused more on nutrition,” says the report of Yelp. “Delivery is 300 times more popular than usual.” This also applies to services such as Foodpanda, which is becoming increasingly popular with Bulgarian consumers!
For example, pizzerias reported an increase in profits by 103% and 88%, respectively, from March 1. On the other hand, restaurants with French cuisine and breakfast places report about 50% growth. The trend is even stronger for groceries and other home-cooked meals. Interest in grocery stores has grown by 144% and agricultural stocks by 455% worldwide.
The growing interest measured in Yelp’s business page views, as well as comments and uploads of review photos, are examples of economic activity. They are not actual sales – although they seem to coincide with most serious reports.
Not surprisingly, in areas with more outbreaks of coronavirus, there is a greater disruption of typical consumer interest patterns. New York, the epicenter of the coronavirus outbreak in the United States, has seen far more of this change than anywhere else.
The Big Apple is even experiencing the biggest economic change in years!The trends continue far beyond the food and restaurant industry, where social exclusion guidelines have halted operations and closed outlets, with the exception of supply-oriented ones.
Interest in home training equipment, for example, has grown by 547%, and interest in tobacco, cannabis and vapes is also over 100% – just like many liquor stores.
Oddly enough, art galleries and strip clubs are doing well, with increases of 73% and 116%, respectively, as both industries use creative solutions using the internet. A member of the New Art Dealers Alliance told Yahoo Finance that this increase in interest in art is not in line with what most of the industry is experiencing, despite the creative decisions from some galleries.
Interest in the supply of cosmetics and beauty has grown by 147% in recent months – despite recommendations to stay at home.
What changes await us in the future remains to be seen.