COVID-19 Effect on the Grocery Industry

With the rise of the Coronavirus (COVID-19), the economy lowered down to its knees. The economic downfall of most countries became a large concern due to the outbreak of COVID-19.

 A lethal and contagious virus known as COVID-19 has been a shock to the whole world. A vast number of people get infected every day and the rapid case count continues to grow as days go by. Due to the shocking news about pandemics, consumers have become more aware.

To limit the exposure, consumers have started to take precautionary measures like purchasing for daily essentials via online grocery marketplaces. A major increase in the online sales of particular grocery articles was noticed as shoppers feel instigated to stock up.

According to the recorded statistics, U.S. sales have increased for various consumer goods. Hand-sanitizer sales increased by 54% while mask sales jumped 179% above usual sales. In addition, other goods such as aerosol disinfectant cleaners also increased sales by 19%. The total number of average daily users on e-grocery platforms rose to 40,000 users due to the effects of COVID-19. (see stats below)

Grocery eCommerce demand was renowned as the continuing reign of the pandemic prolonged. Nevertheless, the COVID-19 effect on groceries and retails continued to rise. Here are various outcomes of COVID-19 on the grocery industry:

Demands on supplies as Coronavirus devastation pushes shopping spree.

COVID-19 brought a damaging impact that plummeted the global stock market. That indicated that businesses would end-up suffering. Toiletries, hand sanitizers, disinfectants, and packaged water bottles were the main necessities that consumers demanded. However, the supply of those essentials were scarce.

It has resulted in an unanticipated shortage in the availability of various commodities. Additionally, an increase in the online sales of groceries was recorded as people started making purchases from e-Tailers, and or, online shops to prevent physical contact and decrease their chances of acquiring the deadly virus.

 Challenges Undergone by Grocery Industry

 The spread of the COVID-19 pandemic, caused grocery retailers to experience numerous challenges:

 Traditional grocery stores and supermarkets are troubled in satisfying frantic shoppers and disruption in the supply chain.

Due to the trepidation of getting infected, shoppers are hesitant to visit physical stores and come in close contact with fellow shoppers and have close contact with fellow shoppers and the support staff. Physical stores are challenged in maintaining a safer environment for their customers.

According to research conducted by Coresight, it was projected that over 27% of internet users in the U.S. stated that they had stopped visiting any public places, grocery markets, and entertainment centers. The other 58% reported that they prefer buying groceries online to avoid the chance of getting infected.

Another potential challenge for online grocery marketplaces is the chance of their delivery staff acquiring the virus. The delivery staff is a key factor that helps fill the gap between consumers and grocery vendors. Also, since delivery partners work on a contractual basis, they might be hesitant to perform their duties and risk their health in such a troubling time.

 New System for Picking Up

Amidst the rising cases of infection, grocery delivery services have come up with zero contact drop-offs. The less contact between people helps to minimize the possible exposure of the infection. Drone deliveries have taken the stage when it comes to “contactless deliveries” and will continue to emerge as technology advances. Retailers have had to come up with various measures to suppress the spread of COVID-19, while also trying to maintain profitability.

The Coronavirus has been a global health emergency since the beginning of 2020. Under such circumstances, shoppers have become more cautious while grocers have begun to focus on the practical application of “contactless delivery” methods to meet consumer demands and safety requirements. The pandemic has suppressed many economies worldwide; however, it also paved a way for eCommerce to have a larger presence in the world.