The FMCG trade witnessed a pointy 34 per cent drop in gross sales in April because of mobility restrictions and provide aspect challenges through the lockdown, after registering single-digit development within the first quarter, based on market insights agency Nielsen.
The decline was primarily on account of decrease gross sales in conventional retail channels resembling grocers, chemists, neighbourhood outlets and cosmetics shops, whereas fashionable commerce like hypermarkets and large retail chains continued to develop in April 2020.
Traditional retail witnessed a decline of 38 per cent in April because of space/store closures. On a mean, a standard retail store was closed for 12 days in April because of varied restrictions and constraints.
This quantity was considerably increased for retailers apart from chemists and grocers, Nielsen stated within the third version of its report on FMCG sector after Covid-19.
On the opposite hand, fashionable commerce continued to develop at round 5 per cent in April 2020 though shopper shopping for behaviour in organised commerce noticed shifts from pre-lockdown interval to successive lockdown phases (Lockdown 1 : March 23 to April 12 and Lockdown 2: April 13 to May 3), it added.
The FMCG trade elevated gross sales within the weeks previous to the lockdown announcement throughout organised retail and organised wholesale channels.
“…as we entered the lockdown part, we noticed a steep decline in gross sales throughout channels. This was brought on by mobility restrictions and provide aspect challenges,” Nielsen stated. “Modern Trade gross sales continued to decelerate as we moved from part I to part II of the lockdown.”
Cash and carry and e-commerce channels, alternatively, have been severely impacted in lockdown 1 however confirmed some indicators of restoration in lockdown 2, the report added.
Moreover, gross sales development particularly within the non-foods phase began shrinking because it was categorized as non-essential.
“Within non-foods, slowdown was witnessed throughout house care and private care classes. Only developed hygiene classes consisting of hand wash, hand sanitizer and ground cleaners continued to develop in lockdown part I and remained flat in lockdown part II on account of heightened focus round well being and hygiene,” it stated.
Nielsen stated there was additionally a slowdown in sale of contemporary produce — vegetables and fruit, eggs, meat and sea meals in fashionable commerce. “This appears to be pushed by each provide and demand aspect elements,” it added.
Citing a shopper examine finished from April 10 to 14 amongst 1,330 respondents throughout 23 cities, Nielsen stated “greater than half of the respondents stated they are going to be avoiding non-veg meals as a precautionary measure.”
This proportion was nonetheless excessive at 37 per cent within the March 17 to 19 spherical of the examine. Forty per cent of respondents within the April spherical said they might purchase much less of meat and fish, it added.