Unprecedented disruption due to COVID-19 pandemic has hugely affected Retail and FMCG sectors. Countries went for complete lockdowns with only essential retailers, grocery stores and pharmacies were functional. There is a significant increase of customers shopping online for the first time and retailers embracing eCommerce. In a recent research carried out by IMR/University of Nicosia, 38 percent made online purchases related to products from supermarkets. Grocery retailers have expanded their services to provide pick-up and delivery channels.
Lessons from China [KPMG analysis]
Evidence suggests the impact and nature of a product during the peak of outbreak will determine its future performance. Certain products exhibited higher growth compared to 2019 growth rate. Apart from sanitizer and disinfectants, home cooking and in-home meals products seen increased sales. There are products that significantly experienced drop during the peak and started to recover, these include biscuits and nutritional supplements. Products like skincare, make-up, alcoholic beverages seems to have a decline rate during the peak.