COVID-19: global retail responses - March 2020
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COVID-19: global retail responses
March 2020
© IGD 2020
Introduction This report was written by
Laura Jacobson
Head of Insight, UK Retail
Laura.Jacobson@igd.com
@LJRetail
We summarise activity from retailers as
they respond with urgency and empathy Meeting extraordinary demand
to the evolving Coronavirus pandemic.
Across the globe we’re seeing similar Supporting staff and suppliers
strategies put in place as retailers seek to
keep stores running and serve their shoppers
at a time when its not “business as usual”.
Community and collaboration
This report will be updated with new case
studies as retailers continue to adapt their
responses and the retailing landscape
changes in the coming days, weeks and Utilising physical store assets
months.
Implementing precautionary measures
New ways to reach shoppers
© IGD 2020
Summary
Global best practice Responsible retailing
Ideas are spreading quickly. Caring for colleagues and
Multinational retailers are prioritising vulnerable and older
implementing initiatives that have shoppers are at the forefront. Retail
worked in one market in others 1 4 heroes and villains are being called
out by the public on social media
Taking initiative Collaboration is key
However, speed of transmission is Competing manufacturers and
necessitating in the moment, local- 2 5 retailers are coming together in
level responses – again with unprecedented ways to limit the
opportunity to replicate at a national impact of the virus on society
or international level
Rapid and ongoing evolution 3 6 Lasting impact
Expect continual change over an Emergence of new shopper
extended period of time, as behaviours and retailer responses
government & health advice, and in particular channel shifts will
shopper behaviour and operational leave a lasting impact on the
challenges evolve grocery retailing landscape
© IGD 2020 Page 3
Meeting
extraordinary
demand Read more about the impact COVID-19 is having on supply and demand in the latest
blog from Senior Supply Chain Analyst Kathleen McLoughlin here
Reducing trading hours Redeploying staff Limiting items per shopper
Around the world retailers are
Walmart is one of a number of US The John Lewis Partnership in the UK introducing limits to the number of units
retailers cutting its trading hours in is redeploying staff from its of products shoppers can buy –
order to provide adequate time for department store division to support its sometimes on staple items, sometimes
staff to restock its shelves and clean grocery division, Waitrose & Partners. across the entire range.
and sanitize its stores.
500 John Lewis staff will support in Implementation varies, from
Stores formerly open 24 hours will Waitrose stores and its grocery encouraging shoppers to just buy what
open from 6am – 11pm. delivery service to meet increased they need to removing items that
demand. exceed the limit at checkout.
© IGD 2020 Image source: Walmart, Waitrose Page 4
Meeting
extraordinary
demand
Extended delivery hours Hiring additional staff Focusing on essentials
In the UK the government has relaxed Coles has plans to hire 5,000 new Amazon is stopping “non-essential”
restrictions on night-time delivery casual employees to restock empty products being sent from warehouses in
hours. This will enable an increased shelves. the UK and US according to Reuters.
frequency of deliveries to help get This will help prioritise the restocking
stock from warehouses to stores. It will also close stores from 8pm to
and shipping of key categories to help
restock and clean stores without
shoppers at this time. These key
customers present.
categories include baby, health &
household, beauty & personal care,
grocery and pet items.
© IGD 2020 Image Source: Coles, Page 5
Supporting
staff and
suppliers
Providing for infected or self-
Additional rewards
isolating staff
Spanish market leader Mercadona is
rewarding its 90,000 staff with a 20% Target is one of many retailers revisiting
bonus on top of their gross salary in sick leave regulations to ensure its staff
March to reflect their hard work and are adequately protected. Information is
dedication during this time. clearly laid out for employees and
shoppers on its website.
Shielding staff in-stores Quicker supplier payments
In markets including France and Italy, Morrisons in the UK is moving to make
Carrefour is installing protective immediate payments for its smaller
Perspex shields at its checkouts to suppliers (up to £1m turnover a year)
offer a layer of protection from the to help their cashflow during
virus for its staff. coronavirus. This move will benefit
around 3,000 suppliers including
1,750 farmers.
© IGD 2020 Image source: Mercadona, Target, Morrisons Page 6
Community &
collaboration
Priority store access for Free deliveries for older Uniting to reassure
vulnerable shoppers shoppers shoppers
Woolworths and Coles are opening Third party online grocery delivery All grocery leaders in France met
their doors exclusively for shoppers platform Szopli in Poland is offering together with the finance and economy
with pensioner or disability cards free deliveries for shoppers over the minister.
ahead of the general public. age of 60.
They are delivering a common
This strategy is designed to ensure Similar to other online operators message to encourage shoppers to
those shoppers most vulnerable to the experiencing high demand, Szopli.pl is reduce their purchasing and only buy
virus can stock up on the products they also prioritising orders for its existing what they need.
need in an environment with reduced customers.
queues and congestion.
© IGD 2020 Image source: Szopli, LeClerc Page 7
Community &
collaboration
Donations to support those Easy access information
Acts of kindness
in need and resources
JD.com set up an aid channel for
Forecourt operator Applegreen is The Kroger Foundation is donating Wuhan, transporting donated goods
showing its thanks and supporting $3m to its not for profit partners including masks and goods. The etailer
medical staff by offering them free hot Feeding America and Share our also launched digital initiatives to help
drinks. Strength’s No Kid Hungry campaign to during the outbreak, including:
support local food banks during the • Coronavirus query functions for its
coronavirus outbreak. smart speakers for latest updates
• Free online health consultations 24/7
© IGD 2020 Image Source: Applegreen Instagram, Kroger, Page 8
Utilising physical
store assets
On-site testing High Street handwashing facilities
Drugstore chains Walgreens and CVS plan to utilize their When the outbreak began, beauty store Lush invited people
carparks to offer government-run COVID-19 testing, without into its stores to wash their hands and help prevent spread of
customers having to get out of their vehicles. the virus.
© IGD 2020 Image source: Walgreens, IGD Page 9
Implementing
precautionary
measures
Reducing use of cash Limiting shoppers in-store Safe shopping
One way Auchan is trying to minimize Polish retailers, including convenience Esselunga in Italy is encouraging
risk of infection is asking shoppers to chain Zabka, are limiting the number shoppers to keep distance from one
use contactless payment methods of shoppers allowed in store at the another. For example, using open air
rather than pay with cash (as this can same time. parking, avoiding using elevators
transmit the virus). unless necessary, and keeping
Zabka’s small format stores are
distance in-store.
allowing just five shoppers at once.
Tannoy announcements help keep
health and safety front of mind while
shopping.
© IGD 2020 Image source: Auchan, Zabka, IGD Page 10New ways to reach
shoppers
Connecting with customers via livestreaming New online providers emerging
In China, Taobao Live, Alibaba Group’s livestreaming platform, New entrants to the online channel are emerging as retailers seek
reported a 110% increase in livestream sessions year-on-year. to reach shoppers self-isolating. Reduced demand in some areas
Brands are seizing the opportunity to drive sales and connect with of the gig economy is freeing up capacity which can help meet the
customers who are self-isolating during the COVID-19 outbreak. surge in demand for groceries.
Taobao is helping companies upskill and realise potential of this
Examples include the DiDi app in China, launching grocery
channel.
deliveries in 21 Chinese cities, following decline in demand for its
core taxi service.
© IGD 2020 Image source: Alizila, DiDi Page 11Want to know more?
For more information
Read our latest supply chain Explore case studies of how Find out more about how
blog food-to-go operators are online retailers are
COVID-19: Impact on supply & facing COVID-19 challenges responding to surges in
demand demand
(article coming soon)
(report coming soon)
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