Peter Huskins
Generally better than we should be, to be honest. Below are the stats for June retail sales courtesy of UBS and ABS. They show some interesting results.
From ShopAbility Director Peter Huskins.
We all knew supermarkets got a hell of a good free kick with Covid, and here we can see by how much. The good news is that specialties have also grown, as we've all rediscovered small fresh produce stores that were always just around the corner, but tossed around as the chains became involved.
Food service has seen some kind of boom as restrictions in most states have been relaxed and limited dining and cafe visits have been allowed. However, this will fall again as the Victorian lockdowns are enforced and other states follow suit to varying degrees as the infection rate rises.
The interesting thing is the takeaway, which recovered strongly after three months in June. The availability of delivery services like Uber Eats and attractive meal bundles has undoubtedly had a positive impact.
The “four walls” psyche as households longing for a meal that was prepared externally by someone else was a real phenomenon and helped support both food service segments. These kind of positive changes due to Covid restrictions meant companies had to turn (I don't like that word) as they found solutions to grow their business that would previously have been unthinkable. Now they are real solutions that actually work and give hope for a sustainable future.
Household and recreational goods have grown dramatically as shoppers and consumers seek full relief and release, as well as a short-term respite from Covid.
And may it be long.
Finally, discretionary apparel and footwear retail segments have continued to decline as demand fades. The change in shopping behavior due to Covid safety concerns and the subsequent reduction in visits to brick-and-mortar stores, including shopping malls, as well as a decrease in the frequency of work-related and / or social entertainment have resulted in greatly reduced demand. A sharp increase in internet purchases has not been enough to offset the declines in stores.
And may it not be long.
The future is completely uncertain. We cannot predict the future based on past performance or past behavior.
The need for short-term focus, short-term flexibility without limits (the linchpin – that word again!) And the willingness to test and test short-term solutions will make it easier for us in the current crisis.
Welcome to the new retail trade, and may the philosophy of flexibility and limitlessness endure for a long time.
About Peter Huskins
Peter Huskins is a career retailer well known and recognized in the Australian FMCG industry. With extensive experience in department stores, DDS, spirits and supermarkets, he has worked with suppliers and retailers for more than 10 years to develop business, category, customer and channel strategies and competitive differentiation.
Call Peter on 0412 574 793 or send an email to peter@shop-ability.com.au.
The Post So how are we? first appeared in Retail World Magazine.
