The impact of the pandemic on groceries

Covid 19 is changing consumer habits dramatically. With the crisis priorities have shifted to a greater emphasis on health, financial security, and the well-being of loved ones.

As in other crisis period, it’s a back to the hierarchy of needs. In groceries, the buying habits changed significantly. More digital, less in-person interactions, less travel, larger baskets, shorter stays in the store, less shop-around and more digital research, changed stores and/or brands, focus on essential products.

Online ecommerce nearly tripled. Due to the mobility and contact restrictions, store visits reduced. Consumers used to crossed-shopping are buying from a single supermarket. With store supply chains affected (especially for the international supplies), some products availability was impacted and consumers had to switch on some brands, at least at the beginning of the crisis. To minimize time at the store, consumers target only the repositioning of essential products.

Some changes are expected to stay for a while others will probably return to pre-crisis state. Buying online will slow down due to the higher costs and fees that exist e-commerce. Consumers will still prefer the store for fresh products.

Safety in the store will increase, meaning less in-person interaction and less customer contact, implying more digital (non-ecommerce) service and engagement.

As in other crisis, we will assist to a shift to value. With a decrease in household income, families will spend more carefully with a focus on essentials, and a likely decrease in consumer overall spending. Value is the first criteria. Consumers will look to cheaper brands, larger packet sizes, and to buy on promotion. In the higher-income bands we are observing more consumers to prioritize quality of goods, boosting their family’s immunity and healthy eating.

Healthy eating is also a concern for value consumers. Some retailers are observing an increase in consumption of products that are perceived to be healthy (for example, fresh foods, eggs, dairy, and bottled water) and a drop in purchases of alcoholic beverages and snacks.

In a new normal with more digital, The Market Radar is prepared to help consumers when shopping in the store. Within affiliated stores, the Market Radar integrates seamlessly with the store and its technology will help to minimize in-store purchase time (by reducing queue times) and to simplify checkout (less contact, less cards, less paper).

On this value-purchasing times, many families are using the Market Radar to save thousands of euros and also to have their families eating healthier.

If you are not using it yet, we encourage you to learn about our method here, and to download the Market Radar here. It is free.

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