Cormac Nolan, Insight Specialist, Strategic Insight & Planning, Bord Bia – The Irish Food Board
Food and drink retailers were forced to quickly adapt under pressure through the early months of the Covid-19 pandemic. Retail sales were up across all food and drink categories an average of 30% in April and May. Elevated retail sales as restrictions were lifted mean that for the 52 weeks up to Sept 6th are 12 % more than the previous 52 weeks in Ireland.
Similar statistics are playing out in every market. As part of the adaptation, many consumers turned to online retail and there have been a number of FoodAlert articles on that topic. Online food and drink shopping in Ireland is up 60% for the last 52 weeks, with spend topping €442m.
As the long term realities of the pandemic become clearer, retailers are moving to adapt and evolve the in person shopping experience to maximise consumer comfort and safety, with some evolutions that can have implications for manufacturers and suppliers.
The biggest manifestation of that as of yet in Walmart in the US. They have revealed this month a functional app-led store redesign that prioritises touch-free, reduced browsing shopping. Shoppers will be prompted to use an app in the store which will allow them to check out touch free. The shift towards efficient, browse free experience in physical retail is in contrast to the experiential emphasis which had been the focus of in-store retail redesign up to the pandemic.
The redesign is being rolled out to 1000 of the retailer’s large footprint Supercenter stores in the next year. The wide-aisle, omnichannel format suits pandemic concerned shopping
habits with reduced trips and social distancing easier to facilitate. The redesign has also incorporated wayfinding which will assist the e-commerce pickers who will be working alongside shoppers in the store.
For producers and exporters, the implications remain largely in packaging. Gary Osbourne has an article dealing specifically with packaging through the pandemic on this bulletin also (LINK). The safety concerns of shoppers will in the immediate term trump the sustainability drive to reduce packaging. So new forms of packaging that balance those needs are emerging. Standing out on the shelf and having format sizes that suit the Supercentre and online shopper mission will be central to success.
Sources
https://www.canvas8.com/signals/2020/10/06/functional-shopping.html
https://www.canvas8.com/behaviour/sector-behaviour/2020/shopping/safety-first.html?navPath=LIBRARY–SECTOR
