Interestingly, FNB insights also show panic-buying in the 3 days before the start of national lockdown in March 2020. Over the 3 days, the bank’s cardholders spent in excess of R4.3bn stocking up on goods they consider essential.
Chief executive of FNB Retail, Raj Makanjee says, “Since the first announcement of measures to go on a lockdown, consumer spending has been on a rollercoaster. While consumers were panic-buying in the days ahead of lockdown, overall consumer spending since the start of lockdown has been subdued. We witnessed a slight increase over the course of level 4 lockdown and expect this trend to continue improving into level 3.”
Chris Labuschagne, CEO of FNB Credit Card, adds, “It’s been particularly interesting to see some of the popular spend buckets during this period. We’ve seen sustained activity in grocery shopping, particularly among merchants which are closer to residential areas compared to shopping malls. Some consumers spent on home improvement items as well as tech and digital, presumably for work and/or online schooling or kids entertainment during this period."
FNB acknowledges that this is a difficult time for households as many may be surviving on limited income or savings as a result of Covid-19. During this period, the Bank urges customers to continue maximising its free benefits such as eBucks rewards and telco through FNB Connect. As the country transitions into winter months, FNB customers can also benefit from the bank’s recently-formed relationship with Clicks when making pharmacy purchases.
“Since Clicks became an eBucks partner in April this year, 56% of our customers are spending 100% of their pharmacy spend at Clicks. In March, before the partnership started, this behaviour was only evident among 27% of customers. This is evidence of the value that customers get from banking with us and maximising our rewards partnerships. Over the years, eBucks has proved to be a key driver of behavioural banking among our customers,” concludes Makanjee.
