The effects of the pandemic on the retail industry will be felt less and less this year, according to the latest market analysis.
It seems that the world’s largest retailers will see their business thrive again in 2021, after a difficult 2020 year, full of challenges, both in terms of medicine, health and human resources, finances and budgets.
Retail and consumer goods (FMCG) sales in Europe will return to growth in 2021, after a year in which the industry was shaken by the impact of Covid-19, according to the report “Navigating the New Reality: Retail and Consumer ”, Developed by strategy &, the global strategy department of the PwC network.
What happens to these businesses
The study finds that the growth rate will vary depending on each sector. What does this thing mean? In the case of trade in non-food products, gross value added (GVA), ie the contribution of companies in the sector to the economy, will increase by 5.3% in 2021 and by 7.2% in 2022, taking into account the success of vaccination campaigns across Europe. , without vaccine-resistant mutations or disruption of the supply chain.
The study also talks about the evolution of the food industry. This sector has not been severely affected by the coronavirus pandemic, as has been the case in other areas. Therefore, here we are talking about an increase in GVA of 0.3% in 2021 and 0.8% in 2022, from a decrease of only 0.3% in 2020.
In general, say analysts who conducted the market study, retailers should expect good financial results this year.
Another important conclusion we find in the study is that e-commence was not just a passing trend, which emerged against the background of anti-pandemic restrictions. Indeed, people preferred online shopping, encouraged by the health crisis, but experts believe that this trend will not be abandoned, even after the epidemiological danger passes. Therefore, online retailers also have reasons to rejoice.
“Traditional retailers, who could not enter the online trade, were deeply affected. In order to adapt to these changes and to withstand the market, European retailers need to rethink and reconfigure their organizations and business models with the same agility and dynamism that they showed during the pandemic, ”experts say.
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