New research reveals changing consumer habits

Over a third of Britons have tried a local small restaurant or shop for the first time by ordering online during the Coronavirus lockdowns, new research prepared by Public First on behalf of Internet Association (IA) has revealed.

And with 71 percent of small and medium sized businesses (SMEs) surveyed planning to continue selling products online after the end of lockdown, the research highlights how changing consumer habits have opened new revenue streams – both during the pandemic and into the future – for small businesses in the UK. 

As non-essential retail in England opened its doors on Monday, the findings – which include new public opinion research and a survey of 250 SMEs in the wholesale, retail and food sectors – show how shopping behaviours have changed during the pandemic and will continue after lockdown eases, as well as highlighting the vital role the internet has played in helping SMEs continue selling products throughout the pandemic.

The extent to which the internet has given SMEs the opportunity to continue selling products throughout the pandemic is clear – with 30 percent offering a delivery function for the first time and 20 percent offering online sales for the first time in order to continue being able to earn revenue while their shops were shut. 

The figures also highlight how the public used the internet to try local small shops and restaurants for the first time during the pandemic – as well as detailing the changing behaviour between online and in person shopping that will remain once the lockdown eases this week. 

The new research shows:

• Nearly half of the public (48%) ordered food or drinks online from local restaurants during coronavirus lockdowns.
• 36 percent of the public tried a local shop or food outlet for the first time by ordering online during the pandemic, with three quarters (76 percent) of those people now planning on visiting the outlet physically for the first time once restrictions are eased;
• More people now plan on taking a blended approach to their shopping habits from next week, with 29 percent now saying they will shop half online, half in person (up from 23 percent saying the same of their habits before the coronavirus pandemic);
• This blended approach from consumers is also expected by SMEs. When asked about their pre-pandemic sales, 17 percent said they had a mixture of online and in-store sales. However, a quarter (25 percent) now expect to have a mixture of online and in-store sales once retail reopens next week. 

An IA spokesperson said: “This new research shows how the internet has played a vital role during the lockdowns over the last 12 months. Importantly, it also shows how the internet can help drive the UK recovery forward.

“The way people work, shop, and do business may have changed for good – it is clear that the internet sector can help ensure that those changes boost the UK economy, communities, and wider society.

The new research of SMEs also showed:

• 61 percent of SMEs surveyed said their business would not have been able to survive without using the internet to sell products during the lockdown;
• 20 percent set up a social media page for the first time, helping firms expand their reach while physical shops had to be closed;
• 25 percent allowed staff to work from home for the first time.