COVID-19 Likely To Have Long Term Effect On German Retail, Study Finds
The coronavirus epidemic is likely to have a long-term impact on the food retail sector in Germany, according to a study by the Munich-based Institute of Brand Logic.
Some 200 food retailers participated in the study, with most stating that they anticipated a long lasting impact, Rundschau.de reported.
Most of the respondents also stated that they wanted to use this time to make organisational changes.
Food retailers highlighted the fact that the duration and intensity of the crisis would decide how the industry moved forward.
According to the study, additional hygiene measures have created higher operational costs for retailers, however businesses also reported that they have seen a decrease in sick leave among employees.
In addition, 80% of food retailers stated that online demand had increased significantly since the beginning of the pandemic, Rundschau said.
Participants also said that they had seen increased demand for regional products (65%) and healthy food (59%), and said they believed that these trends would be an important focus for retailers moving forward.
The study results also indicated that the majority of those surveyed were already planning to expand their e-commerce offering with omnichannel solutions (74%), and strengthen their online marketing capabilities (69%).
To reduce costs, 78% of participants said that they would look at automating warehouse and logistical processes, while 67% expressed a desire to enter into supply chain co-operation agreements.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Elizabeth Schroeder. Click subscribe to sign up to ESM: The European Supermarket Magazine.