Due to COVID-19... 'Home Around Consumption' Increased Within 1km Radius of Residence

Lotte Card Payment Big Data Analysis
Number of Payments Within 500m of Home Increased by 8.0% Year-on-Year
Meanwhile, Payments Over 3km Decreased by 12.6%

[Asia Economy Reporter Ki Ha-young] Amid a decline in overall social consumption due to the implementation of high-intensity social distancing measures to prevent the spread of the novel coronavirus infection (COVID-19), so-called "home around consumption," where everything is resolved near one's home, has increased.

Lotte Card announced on the 23rd that it analyzed credit card payment data over four weeks from the 23rd of last month, when high-intensity social distancing was implemented, to the 19th of this month, revealing this trend. The analysis was conducted on a sample of 100,000 members who primarily use Lotte Card, comparing the number of offline merchant payment transactions by distance from the home address to the previous year.

During the social distancing period, the total number of offline payment transactions decreased by 6.9% compared to the previous year. However, consumption near home increased while consumption farther away decreased. Payments at merchants within a 500m radius from the home address increased by 8.0%, and those within 500m to 1km increased by 0.4%. In contrast, payments at distant merchants located 1?3km or more than 3km away from home decreased by 9.1% and 12.6%, respectively.

This is interpreted to mean that the range of consumer activities narrowed to within a 1km radius walkable from home without the aid of transportation due to the impact of high-intensity social distancing.

By detailed industry, payments at neighborhood small and medium-sized markets selling groceries such as supermarkets, convenience stores, agricultural and livestock products, and daily necessities near home rose sharply compared to the previous year, driving the increase in home around consumption.

This consumption trend was more pronounced on weekends, when the effects of commuting and business trips were relatively less. Consumption within 500m of home on weekdays increased by 7.7% compared to the previous year, while on weekends it increased by 9.5%. The decrease in consumption over 3km away was also more significant on weekends (-19.8%) than on weekdays (-9.1%).

Additionally, when comparing the two phases of high-intensity social distancing (1st phase: March 23 to April 5, 2nd phase: April 6 to 19), the total number of offline payment transactions during the 1st phase decreased by 5.3% compared to the previous year, whereas during the 2nd phase it decreased by 8.5%. The increase in consumption near home also somewhat diminished during the 2nd phase. The consumption growth rate within 500m of home was 11.5% during the 1st phase but only 4.6% during the 2nd phase. Consumption at distances over 3km also decreased more during the 2nd phase (-13.6%) than the 1st phase (-11.7%).

A Lotte Card official stated, "After the end of the 1st phase, as the effectiveness of social distancing was proven and awareness of the necessity of social distancing increased, it is estimated that during the 2nd phase, the public voluntarily implemented even stronger social distancing."

Meanwhile, Lotte Card provides various big data analysis information through its big data algorithm brand "Project Cupid."

This content was produced with the assistance of AI translation services.