Last year brought drastic changes in shopping behavior. What was unthinkable a year ago is common today. Many customs persist, an analysis by NielsenIQ has shown. The data includes large food and drug stores.
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The numbers confirm that the Czechs became involuntary and voluntary chefs and bakers in a year. They spend up to tens of percent more on cleaners, toilet scents, sponges or tea towels and napkins. They consume movies and series, buying 92 percent more popcorn and 15 percent more tortilla chips. At the same time, however, they neglect to take care of their appearance.
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“Many of us have realized the need for mental health. These products are growing. Health is more important than beauty and together with home we can call them the main winners of 2020, “concluded Karel Týra, NielsenIQ Director for the Czech Republic and Slovakia.
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In shopping behavior, health care was reflected in 2.5 times faster growth in sales of BIO products. However, it still accounts for only a fraction (1.3 percent) of packaged goods sales.
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Covid and cosmetics sales do not go together.
The typical “covid man” is more fond of ground and coffee beans. Tire talks about a small coffee revolution, as this category of coffee has grown by 12 percent (to 55 percent), while interest in instant coffee has fallen by 6 percent.
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Time to start a family
Last year, people moved from television to having fun in bed. Since the so-called first wave last spring, sales of sexual stimulants have risen sharply. In the second wave in the autumn, they were already selling 16 percent more year-on-year and at Christmas 21 percent more. Condoms also experienced a short-term boom last year. At the time of preparations for quarantine, their sales jumped by 21 percent, but since the first wave, men’s protection is below the 2019 average.
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Pregnancy tests also increased by 21 percent last year. “It’s an indicator that in the future we can talk about a covid wave of children,” said the head of NielsenIQ.
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Does covid cause a baby boom? Sales of pregnancy tests are growing.
The “Covid customer” has also learned not to panic since last spring. The rapid supply of food and drugstores of all kinds was an accompanying sign of the onset of the epidemic in the Czech Republic, but in the following waves, consumers already believed that the continuous supply of large stores would not disrupt the disease.
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Nevertheless, fears of infection are clearly reflected in long-term shopping behavior. Czechs don’t go to shops that often, but when they go, they spend more money. The number of transactions decreased by 9.9 percent last year, but the average size of the shopping basket increased by 17.3 percent.
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Large stores, such as supermarkets and hypermarkets, improved 5.6 percent year-over-year sales. According to NielsenIQ, the winners are supermarkets and discount stores with growth of 8 percent. The situation has also affected hypermarkets. The largest format grew by 5.1 percent.
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By far the most logical situation helped sales via the Internet. At some stages in the year, they rose by 100 to 150 percent and increased by 51 percent for the full year.
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Private labels are usually not listed by the manufacturer. The Czechs do not mind, their sales in the pandemic are growing strongly.
The pandemic recorded the strings in another. It accelerates their long-term strategy of strengthening their own brands. Although all products have grown, regardless of who they make them for, private labels have been much more successful, which are cheaper than classic branded products.
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Chaos rule
According to the head of the Trade and Tourism Association, Tomáš Prouza, last year was very chaotic for traders, because the rules changed, often during one day. “A year ago, the rules for shops changed twice during the night. We respected it then. It is sad that we have the same rules today, “he says.
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While in the spring, both retailers and customers held back and, to put it bluntly, did what they were told, in the second wave of the fall, consumer discipline was already lacking and the trade sector went to war with the government. The point of contention was, for example, the obligation to close stores on Sundays. The recent decision of the Constitutional Court stating that the conclusion of only a part of the transactions was discriminatory added fuel to the fire of mutual disputes. Prouza thought that nothing had changed in the government’s position.
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According to a NielsenIQ survey, Czechs are most concerned about their health (39 percent) and economy (30 percent). However, they have not yet limited their spending. The lane is waiting for a break to occur. “People are nervous, they are postponing big purchases. This may have an impact on the restoration of the economy in the future. If the uncertainty persists, the restart will be much slower than we expected, “he thinks.
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The restart after the crisis in 2009 took about seven years. Today, the head of NielsenIQ is more optimistic and expects a faster return of consumer confidence.
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