How many times have you bought something online this year?
I imagine that if you didn't buy it, you even put products in the cart, right?
With the COVID-19 pandemic and social distancing measures, there has been a change in the population's routine, with purchases through digital channels being an alternative to avoid crowds. The purchase of food products online, which represents 1% to 5% of the revenue within the total sales of supermarkets, was even more intense because they were essential items. Even with the stores open, the concern about the spread of the disease led to a change in behavior and many consumers decided to try buying food items in the virtual format, even the age group over 60 years old.
Figure: E-grocery points to a possible future for supermarkets. Source: Unsplash
According to a report by Compra & Confie, companies that monitor online sales in Brazil, there was a 339% growth in May in e-commerce food and beverage sales compared to May 2019.
In the first months of the pandemic, in the GPA group, digital retail increased from 1,5% to 4% of sales, with the Pão de Açúcar brand reaching 7%. For the company Natural da Terra, the increase was even greater, reaching reaching 27% in the first weeks of the pandemic and stabilizing at 20%.
As another indication of the growth of this segment in e-commerce, in early July, Uber and Amazon announced new services for selling food, drinks and hygiene and cleaning items. Uber has entered into a partnership with the supermarket delivery startup Cornershop, in which the user will be able to make purchases through the Uber and Ubereats application. Amazon has already implemented the “Program and Save” service, for the purchase of recurring purchase items, which was detailed in the recent post by consultant Fernando Chalréo.
Despite the fact that many consumers entered this online niche “forcibly” due to the imposed social isolation, users have discovered numerous advantages and should continue shopping in this format even after the pandemic. The main benefit is comfort and convenience: not having to face traffic and looking for a place to go to the stores, not having to carry countless bags, not having to face crowded corridors, long queues…
So, if before the activities of separating the product, passing it through the cashier, packing and transporting it was done by the customer, in online purchases, the responsibility becomes the supermarket's, generating overload of the logistical structures.
In the next post I will comment on these challenges faced by companies, and some solutions that were explored. Also, if you want to learn more about digital changes in retail, stay tuned to 26th International Supply Chain Forum, from ILOS, which will take place from October 13 to 15, 2020, and will bring the theme “E-commerce and Retail Transformation” as one of the main topics of the program.
