Faced with rising prices, and inflation hitting 6% in January 2023, the French have altered their behavior, according to the BPCE Digital & Payments Barometer, which analyzes transaction data from 20 million bank cards from the Caisses d'épargne and Banque populaire networks. "The French have a more considered and select approach to their spending, adapting their consumer habits to both their budget and what they really want," summarized Myriam Dassa, the Barometer's director.
This is reflected in a sharp downturn in food purchases (-9%), which have seen the steepest drop in overall spending. The French are spending less and going to the supermarket less. The number of transactions has fallen by 5%. They are also being more cautious in buying household goods, sales of which soared during the Covid-19 pandemic. For example, purchases of household appliances are down by 2%, while garden centers have seen an 8% fall in sales. They are also being more savvy over telephone and Internet subscriptions, which has led to a 3% drop in spending on these items.
And yet the French are not denying themselves any pleasures. They are happy to treat themselves to a drink or a meal out. This is evident in bar receipts, where transactions increased by 35% between 2019 and 2022. Despite the environmental crisis and inflation, travel is still on the agenda. Travel agencies (both physical and online) are seeing an 18% increase in transactions compared to before the pandemic, as are hotels (14%), airlines (11%) and mainline trains (9%).
The Internet is a must for big-ticket purchases
Another underlying trend is that there is no sign of online shopping – so prevalent during the pandemic – slowing down. "We thought that things would return to normal once Covid restrictions had been lifted," said Ms. Dassa. This has not been the case. In fact, quite the opposite. "Online shopping behavior is becoming increasingly the norm." The Internet, which makes it easier to compare prices than physical stores, is becoming a must, especially for big-ticket purchases. The average amount purchased online is three times higher than in stores.
In terms of groceries, the Internet has not yet replaced the hypermarket or the small shopkeeper
In some sectors, such as music and gaming, digital technology is booming. Music and video streaming saw a massive surge of 20% between 2021 and 2022, with video games also doing well (16%). And dating agencies are increasingly giving way to online dating sites, where transactions have jumped by 28%. On the other hand, in terms of groceries, the Internet has not yet replaced the hypermarket or the small shopkeeper: only 5% of food purchases are made online.
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