With prices on the rise, customers are spending more on items with low prices now.
There were eight percent more people shopping at discount stores in October of this year compared to the same month in 2016, likely as a result of the rising cost of living.
In these establishments, customers are shelling out 9.5% more money than they did a year ago. They are also spending a larger portion of their budget on items with low prices, despite the possibility that the prices of these items will increase in the future.
This is what the most recent data on card spending from Revolut shows, demonstrating how the effects of inflation change the way that people spend their money.
These numbers were collected at the perfect time, as the Central Statistics Office will soon be releasing the inflation numbers for the month of October.
According to a flash estimate from Eurostat’s Harmonized Index of Consumer Prices that was released last week, the annual rate of price growth in October was 9.5%, which is an increase from the rate of 8.6% in September.
According to data provided by Revolut, grocery store customers spent an average of 7% more money in October than they did in the same month the previous year. This increase is likely attributable to the general upward trend in the cost of food and other necessities.
Because of the increased price of fuel, the typical customer who fills up their tank at a gas station spends 18 percent more money than they did during the same period of time a year ago.
According to a statement made by a representative of Revolut, as compared to the previous year, savvy shoppers are shifting their shopping from regular stores to discount stores, and more people are taking the bus.
Revolut: People Spending More on Restaurants, Theaters, and Day Trips
The data, on the other hand, demonstrate that despite the fact that prices are rising, people continue to spend money on non-essential items such as entertainment, experiences, and other luxuries.
For instance, compared to October 2021, the two million people in Ireland who use Revolut spent 25 percent more money at airlines and travel agencies during the month of October in 2021.
Although there was a 4% increase in spending at restaurants and a 5% increase in spending at theaters, there was an 18% decrease in spending and attendance at movie theaters.
During the downtime, according to a spokesperson for Revolut, many of the company’s customers were able to gain some much-needed perspective.
“Day trip activities like museums and theaters, and travel, where spending on hotels and airlines keeps going up,” are the new top priorities. “Day trip activities” refers to activities that can be completed within a single day.
People increased their spending at clothing boutiques by an average of 12%, at beauty supply boutiques by an average of 7%, and at discount department stores by an average of 9%.
In spite of the fact that this is traditionally a time of year when people make more purchases, the data also shows that people are spending less money at some stores.
For instance, there was a more than 25 percent decrease in sales of toys, and there was a 5 percent decrease in the number of people walking around.
There were 9% fewer people who went to florists, which led to a 10% decrease in sales at those establishments. On the other hand, there were 2% fewer people who went to garden centers, which led to a 2% decrease in sales at those establishments.