Changes in consumer spending habits are here to stay. Here’s how to make the most of your shopping.

Many aspects of American life have been upended over the past 18 months, with stay-at-home orders forcing people to find new routines and different ways of working and living. Now, as local economies open back up, some patterns may be becoming permanent.

Some of the most significant changes can be seen in how people’s spending habits have changed. A recent TD Bank survey dug into new consumer behaviors and motivations to find out not just what consumers purchased over the past year, but also where, how, and why. The results shed light on key trends and provide a glimpse into which trends may have staying power.

More people are doing more of their shopping online

Unsurprisingly, online sales soared during the pandemic. Before COVID-19, 10% of consumers were doing all of their shopping online; during the pandemic, the survey found, it rose to 21%.

What’s more, a quarter of consumers said they typically overspend on online shopping – and that figure is higher among those who have been working from home.

“While we’re seeing more foot traffic in retail stores in the past few months, I do think the past year has accelerated a shift to online shopping,” said Jason Thacker, TD Bank’s head of credit cards and unsecured lending. “Many people have found favorite online retailers and established digital shopping routines, such as ordering weekly grocery deliveries.”

Less spending out has led to more spending in

Stay-at-home orders across the country signaled less spending on dining out and transit. Instead, many people put their money to work around their homes. Three in four survey respondents said they spent more on groceries and cooking-related items during the pandemic, and 22% invested in home improvements such as new furniture or décor.

“The latest Retail Sales data indicates a shift towards spending on restaurants, gas and clothing, indicating things may be trending toward pre-pandemic categories,” Thacker said. “That said, so many of us have spent the past year honing our cooking skills, landscaping our yards, and getting comfortable doing DIY home projects. With many employers embracing remote work, I think we’ll continue to see strong spend on at-home activities.”

Conscious consumption is on the rise

Some consumers have also been aligning their values with their purchase behavior. Almost 60% said they are conscious about where they shop and the products they buy, and that they prioritize local, sustainable, and/or ethically sourced products. This was most prevalent among millennials.

“In recent years there’s been much more awareness around the entire value chain that’s tied to the products on shelves or services supplied,” Thacker said. “We’re seeing that many consumers are using their buying power to support causes and communities they’re passionate about.”

In the survey, 29% of respondents said that they prioritize supporting small/local businesses, and 22% support companies that are environmentally responsible. Nearly a quarter (22%) said they have prioritized shopping at Black and people-of-color-owned businesses in the past year.

Renewed focus on earning rewards

The survey also uncovered a notable shift in consumers reaching for their credit card at checkout, rather than cash. Nearly half (48%) of consumers said they rely on credit cards for day-to-day purchases, compared to just 35% in TD’s survey three years ago.

Some attribute this to COVID-19. Nearly a quarter of credit card holders say they’re putting more of their purchases on credit now than before the pandemic, and the top reason is to earn rewards.

“It’s clear from the data that many shoppers are using their credit cards as a tool to earn rewards,” said Thacker. “For shoppers who can pay off their balance each month and feel confident managing their spending, using credit can be an effective way to put extra cash in their pockets.”

To help consumers maximize their rewards, TD recently launched the TD Double Up credit card, which features an up to 2% Cash Back rewards program. Double Up credit card holders can earn 1% Cash Back on purchases, with no rotating categories, and an additional 1% Cash Back when rewards are redeemed into an eligible TD Deposit Account. The card has no annual fee as well as no limit, caps, or expiration dates when redeeming rewards, as long as the credit card account is open and in good standing.*

The TD Double Up credit card also offers consumers the convenience of seamless redemption into an eligible TD deposit account.

Learn more about the TD Double Up credit card and terms and eligibility.

This post was created by TD Bank with Insider Studios.

*Read terms and conditions for important information about APRs, fees, eligible purchases, balance transfers and rewards program details. Terms for the TD Deposit Account govern use and any limitations that may prohibit from depositing or withdrawing a Redemption Bonus.

The TD Double Up Credit Card is available within TD’s retail footprint only.