Retail sales are flattened out


Since the hospitality industry has reopened, sales growth in supermarkets and grocery stores in particular has come to a halt. In the supermarkets the turnover is even decreasing compared to a year ago, the vegetable shops see the extra income evaporate. At drugstores you can also see the reopening of the catering industry; we spend more money on personal care.

This is shown by figures from market researcher GfK, who looked at sales at supermarkets and specialist shops. “In the course of May, revenues for the supermarkets normalized, now growth is completely out and sales are even falling,” says Norman Buysse of GfK.

Last year the supermarkets and specialty shops still had big pluses, when the catering industry had to close its doors for the first time and the Netherlands was tied to home. “The bakers are still doing well,” says Buysse. “They grew less impetuous during the first coronavirus period, but that growth seems to be more sustainable.”

Butchers ‘ earnings have been erratic. “They do relatively better than the supermarket, but last year’s big growth is gone. The fish shop is also letting it slip away.”But the grocery shop clearly suffers the most from the ‘normalization’ of our eating habits.

“We don’t really eat more or less during the coronavirus crisis, only where we buy and eat different,” concludes the GfK researcher. And how we buy it. At the height of the coronacrisis we not only had the groceries delivered home more often. We also went less often to the supermarket, to less different shops and therefore bought more at a time.

“Now that supermarkets are seeing a decrease in sales, the offers for supermarkets are also becoming more important. This coincides with the fact that people again dare to go to more different stores and are expected to go to different stores on bargain hunting, ” says Buysse. This only increases the importance of offers.

To external care we are more out again. “For example, make-up was sold less since last year,because people went out much less. We now see that drugstores are again selling more in the area of personal care. Also, deodorant and hair gel, for example.”

According to the GfK researcher, that the specialty stores, across the board, did such good business during the periods of lockdowns, was twofold. “On the one hand to compensate for the lack of the experience of good food in the hospitality industry and on the other hand because we worked at home and therefore had the opportunity to go to the specialist shop.”It usually has shorter opening hours than supermarkets.

So if we continue to work hybrid, part at home, part at the office, that profit would be preserved. “But the increase due to the lack of the catering industry will decrease.”

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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