Panic Buying and Consumption Displacement during COVID-19: Evidence from New Zealand
Abstract
:1. Introduction
1.1. Panic Buying as a Consumer Response
1.2. Panic Buying and Consumption Displacement during COVID-19
2. Data and Findings
2.1. Overall Retail Spending Patterns
2.2. Transactions
3. Discussion
- The panic buying event is catalyzed by an unexpected and suddenly occurring crisis phenomenon that triggers a policy response (e.g., a partial or complete lockdown) which may impact on people’s livelihood and their potential inability to provide for themselves in light of a prolonged crisis scenario.
- Once a panic buying scenario is initiated, overall spending increases sharply in the lead up to anticipated lockdowns.
- Transactional spending increases and subsides only slowly to a level higher than pre lockdown.
- Different consumption categories exhibit vastly different patterns. Consumption displacement occurs as increased spending flows from non-essentials to necessities of life. This is exacerbated by hoarding of essential items and government mandated shutdowns of some non-essential retail sectors.
- The magnitude of the panic buying event far exceeds historical seasonal patterns of consumer spending (outside of Christmas and Easter).
4. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Alert Level | Risk Assessment | Measures Applied That Affect Consumption |
---|---|---|
Alert Level 1 Prepare Disease contained | Isolated household transmission could be occurring in New Zealand | Border entry measures to minimize risk of importing COVID-19 cases Self-isolation and quarantine required if sick Schools and workplaces open Physical distancing encouraged No restrictions on gatherings No restrictions on domestic transport |
Alert Level 2 Reduce Disease is contained, but risk of community transmission remains | Household transmission could be occurring Single or isolated cluster outbreaks | People can be with friends and family, go shopping, or travel domestically, but should follow public health guidance Physical distancing of two meters, with one meter physical distancing in controlled environments like workplaces unless other measures are in place No more than 100 people at indoor or outdoor gatherings Sport and recreation activities are allowed subject to conditions, contact tracing and physical distancing Public venues must comply with public health measures Businesses open to the public, but must follow public health guidance including in relation to physical distancing and contact tracing Alternative ways of working encouraged Educational facilities open |
Alert Level 3 Restrict High risk the disease is not contained | Community transmission might be happening New clusters may emerge but can be controlled through testing and contact tracing | People instructed to stay home in their bubble other than for essential personal movement Physical distancing of two meters outside home including on public transport, or one meter in controlled environments like schools and workplaces Bubbles must stay within their immediate household bubble, but can expand to connect with close family, bring in caregivers, or support isolated people. This extended bubble should remain exclusive People must work from home unless that is not possible Businesses can open premises, but cannot physically interact with customers Low-risk local recreation activities are allowed Public venues are closed (libraries, museums, cinemas, food courts, gyms, pools, playgrounds, markets) Gatherings of up to ten people are only allowed for weddings and funerals Inter-regional travel is highly limited to essential workers, with limited exemptions |
Alert Level 4 Lockdown Likely that disease is not contained | Community transmission is occurring Widespread outbreaks and new clusters | People instructed to stay at home in their bubble other than for essential personal movement Safe recreational activity is allowed in the local area Travel is severely limited All gatherings cancelled and all public venues closed Businesses closed except for essential services, e.g., supermarkets, pharmacies, clinics, petrol stations and lifeline utilities Educational facilities closed Rationing of supplies and requisitioning of facilities possible |
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Hall, C.M.; Fieger, P.; Prayag, G.; Dyason, D. Panic Buying and Consumption Displacement during COVID-19: Evidence from New Zealand. Economies 2021, 9, 46. https://doi.org/10.3390/economies9020046
Hall CM, Fieger P, Prayag G, Dyason D. Panic Buying and Consumption Displacement during COVID-19: Evidence from New Zealand. Economies. 2021; 9(2):46. https://doi.org/10.3390/economies9020046
Chicago/Turabian StyleHall, C. Michael, Peter Fieger, Girish Prayag, and David Dyason. 2021. "Panic Buying and Consumption Displacement during COVID-19: Evidence from New Zealand" Economies 9, no. 2: 46. https://doi.org/10.3390/economies9020046
APA StyleHall, C. M., Fieger, P., Prayag, G., & Dyason, D. (2021). Panic Buying and Consumption Displacement during COVID-19: Evidence from New Zealand. Economies, 9(2), 46. https://doi.org/10.3390/economies9020046