Supermarkets in New Zealand

2020 IMPACT

Supermarkets fare better in 2020, thanks to stockpiling trends as consumers flock to stock up their pantries

Supermarkets endured the onset of the economic crisis brought about by the COVID-19 pandemic rather well in comparison to many other retail channels, because of a relatively stronger performance in the first two quarters of 2020. Due to mobility limitations because of the strict lockdown restrictions and major alert level lockdowns, New Zealand consumers chose to shop for larger quantities of groceries as they spent more time at home.

Online shopping pushes supermarkets to build on digital capabilities

The surge of e-commerce and the increased number of New Zealanders shopping online have led to sharp growth in the channel, with COVID-19 being the driver to push consumers to try this new way of making purchases from the comfort and safety of their homes. Supermarket chains such as Countdown and Foodstuffs have experienced large spikes in new customers making their shopping trips online, and this shift in channel preference is expected to bring about a longer-term change in consumer shopping behaviour.

Supermarkets pivot and stay flexible to cater to changing consumer needs

The lockdown and recovery period of early 2020 largely forced New Zealanders to remain at home, with a major shift in consumer lifestyles as remote working and online schooling became the new norms. Consumers therefore cooked at home more often and also purchased more groceries as a result of restricted eating out occasions, due to fear of contracting the virus.

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