Credit union customers used cards less, purchased more

It was no surprise at the beginning of the pandemic lockdown, consumers were using debit and credit cards to buy everything from groceries to jigsaw puzzles. Now as restrictions are beginning to lift across the country, customer spending is changing again, with certain categories showing a marked increase in spending while others showing are decline.

Co-op Financial Services monitoried credit union customers' debit and credit card spending year-over-year to determine changes in purchasing due to the pandemic. Although credit and debit spending showed a rebound in June, debit transactions were down 5% year-over-year, but the total dollar amount of transactions increased 10% year-over-year. Credit transaction volume decreased 3% year-over-year, but dollar amounts increased 6%, again indicating consumers used credit cards less, but bought more.

Here's a look at the spending trends for credit union credit and debit card holders comparing June 1-15, 2020 to June 1-15, 2019:

Online Bookstores (Amazon)

Debit: + 26%

Credit: + 61%

Analysis: Amazon continues to be a strong top-of-wallet opportunity for credit union customers, especially once summer deals and discounts begin.

Grocery Stores/Supermarkets

Debit: -12%

Credit: -5%

Analysis: In-store grocery purchases saw a slight recovery in the first half of June, but it appears consumers are still being cautious when it comes to trips to the store. This may indicate a longer-term trend towards online shopping becoming the preferred method for buying groceries.

Hardware Stores

Debit: +35%

Credit: +32%

Analysis: Home improvement projects continues to be a trend for consumers and hardware stores sales have seen steady positive year-over-year growth over the last several weeks.

Department Stores

Debit:-15%

Credit: - 3%

Analysis: Department stores are hoping to recover from months of declining revenues, but speculation indicates that the decline may be permanent; one former department store executive predicted that one-third of American malls will close over the next decade.

Discount Stores

Debit: +10%

Credit: +20%

Analysis: Discount stores saw a 10th consecutive week of year-over-year growth in credit and debit transactions.