What will consumers do? What will they think? How will they spend their money in a recession?"
Even as brands and retailers pivot again and again to navigate the rapidly evolving changes in shopper behavior and sentiment brought on by the COVID-19 pandemic, they are looking forward to a post-pandemic world. Complicating their planning for this time is uncertainty: What will consumers do? What will they think? How will they spend their money in a recession — and where will they spend it?
To shed some light, at the end of March the Advantage Analytics, Insights and Intelligence SMARTeam surveyed 1,142 U.S. household primary shoppers and those who shared shopping responsibilities. Here’s how these shoppers have reacted to COVID-19 — and what they believe their post-pandemic behavior will be:
Though shelves were stripped in a surge of panic buying, nearly half of surveyed shoppers report they did not overpurchase anything.
The COVID-19 outbreak caused a flurry of stock-up and fill-in shopping trips last month, but only one-fifth of shoppers reported overbuying paper goods, mostly toilet paper (16%). Fewer than one in 10 overbought cleaning supplies (7%) and canned goods (6%) and admitted they won’t need to buy those items “for several months.”
Moving forward, as sanitation and cleanliness remains top of mind, nearly 60% of shoppers plan on using more household and personal cleaning products after the crisis. If these items aren’t in stock, retailers and brands risk losing once-loyal shoppers permanently.
Two out of three shoppers switched brands due to out-of-stocks — and nearly 30% plan to switch some brands permanently.
Brands that gained new buyers have an opportunity to hold on to them by offering on-package promotions and tips, such as cleaning advice or recipes.
As we look ahead to a new normal, expect mainstream, low-priced brands to retain their popularity, while premium and gourmet brands may need to invest in shopper marketing to win customers back.
Shoppers who had occasionally shopped for groceries online plan to increase their online purchases in the future.
One-fourth of shoppers surveyed said they shopped for groceries online (up to 20% of purchases) prior to the pandemic — and 25 percent of those shoppers say they’ll be doing more click-and-collect or online shopping for delivery when the health crisis passes. Two traits of online shopping are pushing these plans: safety and product availability.
Still, the online grocery experience for most has been frustrating since the virus outbreak, with sites crashing, products out of stock and very limited — or no — delivery times available. Retailers who don’t address these problems very soon risk losing new-to-online grocery shoppers and those who plan to shop more frequently.
How retailers execute now and address anxious shoppers’ immediate needs will greatly influence where they shop after the crisis. Now’s the time to promote store loyalty programs so that new and loyal shoppers get the most out of their shopping experience, reconsider the amount of space and staff devoted to click-and-collect orders — are they enough? — and evaluate which items are available for click-and-collect to create a balance between the in-store and online shopping experience.
As we move through the pandemic and deal with the economic fallout, retailers should consider showcasing low-priced items on their home pages and increasing social media targeting of price-sensitive online shoppers.
Fewer than one-fourth of shoppers are buying carryout or having food delivered at least once a week. Most are spending more time in the kitchen cooking easy-to-prepare meals — and plan to continue cooking more at home and seek convenient meal solutions after the pandemic.
Despite the drastic change in dining behavior, only one-fourth of shoppers we surveyed said they’re eager to eat out again. Nearly 60% say they will continue to prepare more meals after the impact of the pandemic eases.
Young people, especially singles aged 18 to 34 and growing families with adults aged 25 to 44, are looking for quick and convenient meal solutions. One long-term opportunity for brands and retailers is collaborating on prepared meal solutions that mimic restaurant meals and promoting them with bundle deals or discounts.
It’s clear now that life post-pandemic will be vastly different than it was just a couple months ago, as consumers spend more time at home — nearly two-thirds of young and single Americans plan to work from home more frequently — and millions work through financial hardship.
That means long-term changes to what we eat and where we buy it, changes brands and retailers need to consider now, even as they grapple with day-to-day supply chain and in-store challenges.
For more detailed survey results, contact [email protected].
