RetailZoom: New categories arise to top-10 rank since COVID-19

In our earlier articles we have showcased many different perspectives how the spreading of the virus and the subsequent quarantine period has changed the way consumers are doing their shopping in the Domestic Chains. Now let’s look at how the importance of the TOP categories has changed and by how much – based on the March performances.

Andreas Christou

Well, a quick glance at the numbers reveals that the TOP 3 categories (Meat, Beer and Vegetables respectively) have remained on the virtual podium, they are still dominating the baskets in the shops of the Local Chains. The growth of the Beer category has slacked compared to the other top categories that managed to grow in some cases by 3 digits. However, it is still is the 3rd most important category for shoppers. Fruits however have fallen significantly, just as the Bakery products (as in a lot of household bakery products are now home cooked). Furthermore, Salty Snacks have also decreased slightly, most probably in close connection with the elimination of all social events and thus the fall of impulse baskets.

On the growing side we can find – of course – the toilet papers and pasta, whom are the fastest developing top 10 categories and have both jumped in ranking by double digits and in value sales by nearly triple digits versus year ago. These two categories are now the symbols of a so called “hoarding syndrome”. Interestingly, dairy products such as Milk have also increased by over 50% in domestic chains, earning them a well-deserved 5^th placement. As for the remaining top categories, Chocolates and sweets, as well as Carbonated Soft Drinks preserved their top spots (although as for CSD, the single-serve and multi-serve segments have gone exactly the opposite way) with a slight increase in value sales.

If we check how the overall basket values of each product categories have evolved, we find that the biggest jump is happening in baskets containing Bakery products (+150%), overall values of baskets containing Milk has also grown significantly (+82%) from ~4,600 HUF. to ~8,400 HUF., just as baskets containing Pasta (+68%) has from ~5,500 HUF. to 9,200 HUF.

The fact that the Bakery products are falling behind is simply due two reasons; firstly, the “meal” and “snack” shoppers that made up majority of the impulse baskets are no longer purchasing bakery products as a means of “grab & go” snacking. As such, impulse baskets have dwindled. Secondly, with the increase of flour, yeast and many other raw materials, a big chunk of bakery products are now home prepared. As such, it is perfectly reasonable that the category is losing share yet has the biggest increase in basket value. The average growth in the overall basket values of all categories is standing at 60% across domestic chains in March of 2020.