As the expert from the Market Monitoring Center indicated, in the first few months of this year there were restrictions related to the third wave of the epidemic, including customer limits and working hours for the elderly in stores, in addition to closed schools, restaurants, cultural and sports facilities, and teleworking.
“Limited commuting means fewer opportunities for impulse shopping along the way, and large purchases often go to supermarkets or discount stores.Therefore, for many small-sized enterprises, the start of 2021 meant both lower sales compared to 2020 and pre-pandemic times ”- she noted.
Warm June and July, she added, improved mood and slight sales increases, but were followed by a cool, rainy August, with a large portion of the typical summer categories posting a big drop.
“In the period from January to October 2021, the total sales of convenience stores up to 300 square meters decreased by 2% compared to the same period in 2020, the number of transactions during this period decreased by more than 4%, and compared to 2019 this decrease was 15%.” – She said.
As I explain, the drop in sales compared to the previous year is a result of very high sales at the beginning of the pandemic – in March and April 2020, when customers were stocking up and often going to convenience stores for everyday purchases. According to Cezarico, the main change in the behavior of convenience store customers that can be observed in connection with the epidemic is less frequent, but slightly larger and better planned purchases.
“The average receipt value in the first ten months of 2021 was 18.6 PLN, i.e. less than 3%. over a year ago And as much as 20 per cent. More than two years ago, although the number of products placed in the basket increased only by 7 percent compared to 2019 ”- she explained, now, on average, 4 products are sold there.
The expert noted that compared to the period before the epidemic, the importance of transactions involving the purchase of 1-2 products has decreased slightly, while customers purchase 6 or more products simultaneously more frequently than before. “However, convenience stores are the places where you primarily do your impulse, complementary and convenient shopping – eg on the way from work” – she noted.
Taxes and fees hit small shops
She also added, customers’ purchasing decisions were also influenced by objective factors, such as new taxes and fees. “The sugar tax that was imposed from January of this year translated into higher prices for sweetened drinks, which means that in the first ten months of this year, the sale of soft drinks decreased by 20 percent, despite the increase in the value of sales of soft drinks by about 9 percent. percentage.” – She said.
It also noted that sales trends and prices of non-taxable beverage groups, eg clean water, juices, and isotonic beverages, remained relatively stable, and some even recorded increases in sales.
As Szarico pointed out, a similar situation occurred after the introduction of the tax on vodka in small packages. “High Monkey Folk prices translated into a decrease in the quantity and value of sales of pure and flavored vodka – by 12 percent.” Some customers who previously bought small bottles of clear vodka switched to larger bottles, mostly pint bottles of the lowest price bracket ”- she added.
In her opinion, Next year will bring another set of challengesthat retailers will have to deal with. “It is enough to mention the father. Increasing the excise tax on alcohol and tobacco products, change the provisions Sunday trading And Inflation that affects everyone. However, despite difficult economic conditions, changing legal regulations, shrinking number of stores, rising prices and strong competition from the discount, convenience stores are still and will most likely be the main channel for selling food for a long time ”- an expert noted.
CMR is an independent research agency that specializes in analyzing transaction data obtained electronically from cash registers installed in grocery stores.
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