In association with


NEWS ShopTalk


as worried customers stockpiled and social distancing measures being implemented with varying degrees of success at the outset.


However, most of the major


players have risen to the occasion with, for example, vast recruitment drives to expand online shopping options and ‘little and often’ restocking strategies to prevent excessive bulk buying.


B y the end of April, Tesco had “increased the number of online orders every week from 590,000 in the first week of the crisis, to over one million this week. We’ll increase this further to 1.2 million slots in the next two weeks.”


In-store technology has been T


he general retail sector has been hit hard by Covid- 19 measures, with big


names such as Debenhams, Laura Ashley, Warehouse and Oasis going into administration, while the


supermarkets sit at the opposite end of the spectrum with continuous trade.


The supermarkets have come under heavy fire since lock down began with essentials running out


fast-tracked with to help with social distancing and Asda rolled out its Scan & Go Mobile app to all 581 stores.


Customers can download the app on their phone and use it to scan and pack their groceries as they shop.


Not everything is as positive


with suppliers, however and some supermarkets have launched


schemes to assist British producers


that have been affected by the lock down.


According to Morrisons, these initiatives are needed because “customer demand and industry prices for certain foods have fallen dramatically since the lock down started – as one third was destined for the restaurant and catering trade which has closed.


“Meat and fish producers have been unable to sell certain products - including high quality steaks, joints, whole fish and shellfish - that might have been destined for the restaurant trade.”


The Covid-19 crisis will most likely continue to impact on


supermarkets even after the crisis has passed, not least in people’s shopping habits.


Future liquidity is a concern with


most retailers taking steps to protect themselves over the coming months. Sainsbury has released preliminary results to 7 March and speculated upon the future of the business, acknowledging that there was a wide range of potential profit outcomes, both short and medium term.


The company’s base case assumes that lock down restrictions will have eased by the end of June, but that business will continue to be disrupted until mid-September, and economic conditions will be weak thereafter, affecting consumer demand for general merchandise and clothing.


In order to help maintain liquidity, it is anticipated that dividends will not be paid to shareholders of many supermarkets as year ends approach through this lock down period.


Bond 6 www.bond-group.com www


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