Facteus Launches Consumer Spending Report: Finding Conviction Post COVID-19
Report developed from analyses of near real-time data from millions of consumer financial transactions
Facteus, the leading provider of actionable insights from financial data, published the Facteus Consumer-Spending Report: Finding Conviction Post COVID-19. The report provides a critical lens into the impact of COVID-19 on consumer behaviors and transaction trends.
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“Our transactional data can act as a window into economic activity by shining a light on consumer behavior as it fluctuates, as state reopenings move in fits and starts, and as economic distress begins to affect purchase decisions.”
The report is based on transactional data from millions of consumer transactions, covering more than 1,600 companies and 430 publicly traded stock tickers, sourced directly from financial institutions, fintechs, and payments companies. Facteus transaction data incorporates credit and debit card purchases, and transactions through payroll and corporate-expense accounts.
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Key findings from the report include:
- Share of Wallet Shifts as a Result of COVID-19: The abruptness of the rolling shelter-in-place restrictions and reopenings created pronounced shifts in spending patterns, first demonstrating the appetite for nondiscretionary spending, and over time reflecting the pent-up demand for “non-essential” categories such as department stores.
- Signals of Price Consciousness: Despite starting from a place of disadvantage with distribution centers and online operations closed for most of April, off-price stores were particularly popular as the economy started to reopen.
- Case Study on Impact of Friction: Restaurants showed disparate rates of recovery depending on variables such as type of food offered, point of sale optionality (drive-thru, takeout, etc.), and other factors. Pizza, for example, enjoyed significant spikes throughout the initial lockdowns and afterwards, while spending at coffee chains has been slower to recover, likely due to the social distancing measures that significantly impacted spending throughout the pandemic.
“The COVID-19 pandemic gave little warning to investors and there was no relevant precedent of what a rebound may look like,” said Randy Koch, CEO of Facteus. “Our transactional data can act as a window into economic activity by shining a light on consumer behavior as it fluctuates, as state reopenings move in fits and starts, and as economic distress begins to affect purchase decisions.”
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