While most of retail is in the doldrums due to coronavirus, grocers are seeing explosive growth, and e-grocery has been accelerating rapidly due to shutdowns. Scott DeGraeve, COO and co-founder of Locai Solutions, and Doug Baker, VP, industry relations at FMI, discuss what they’re seeing across the sector, and how it will change.
These are truly unprecedented times. Strikes at ports and fuel prices sometimes disrupt supply chains, but the coronavirus pandemic is causing disruption to offshore manufacturing and shipping patterns that hasn’t been seen since World War II. Here are some observations on the impact based on feedback from multichannel sellers.
A new consumer survey from Coresight Research highlighted a number of concerns related to the worsening coronavirus outbreak, with job losses already being reported and fear of lost income gripping one-third of respondents.
The coronavirus outbreak is continuing to wreak havoc on retail, with the impact going beyond store shutdowns to online business being shuttered. Companies that closed their ecommerce operations in recent days include fashion brands Reformation, Marysia and The Frankie Shop, and retailers TJ Maxx, Marshalls and HomeGoods.
Grocers may be ringing up major sales from the crush of store and online panic buying due to the growing coronavirus threat, but the market will be painful after the situation abates as demand falls and supplies are overstocked, a Barclays analyst said in a research note.
The National Retail Federation and the International Council of Shopping Centers are asking the Trump administration and the federal government for relief for members who are being hard hit by the coronavirus crisis, much as are other industries such as airlines and hospitality, as mall, store and restaurant closures grow.
Amazon’s decision to limit new inventory for Fulfillment By Amazon (FBA) to essential items through April 5 due to the coronavirus situation is severely impacting sellers heavily reliant on FBA, forcing some out of business while others scramble to move product or find fulfillment partners.