The retail winners and losers during the coronavirus pandemic
The coronavirus pandemic has changed shopping habits, but the impact has not been consistent across retail sectors.
While foot traffic in Australian shopping precincts is down by about 14 per cent, and 20 to 30 per cent of store fronts are closed, not all retailers are suffering.
Managing Director of market research practice, Marketing Focus, Barry Urqhart, said supermarkets are the obvious winners, but it won’t last.
“Certainly, over the last six weeks, purchases have exceed consumption,” he told 3AW’s Neil Mitchell.
“I think [shoppers are] rediscovering pantries in second bedrooms because they have been hoarding.”
Woolworths recorded a 10 per cent jump in food sales in the 13 weeks to April.
But supermarkets aren’t the only retailers experiencing a coronavirus boom.
Florists are also reporting sales are up.
Meanwhile, Myer has reported a 600 per cent year-on-year increase in sales of skin care, a 520 per cent increase in beauty products, and a 171 per cent increase in entertainment sales.
On the other side, there are plenty of retail sectors which are suffering due to coronavirus.
Fashion sales have plummeted, as have footwear sales.
A reduction in drivers on the roads has also led to a decrease in demand for smash repairs.
“Crash repair operators are reporting that in the past two weeks their turnover has fallen by more than 50 per cent,” Mr Urqhart said.
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