How did COVID-19 change what people buy: Evidence from a supermarket chain. (September 2022)

• Record Type: Journal Article
• Authors: Zuokas, Danas; Gul, Evren; Lim, Alvin
• Is Part Of: Journal of retailing and consumer services. Volume 68(2022)
• Publication Date: 2022-09
• Subjects: Consumer behavior -- COVID-19 pandemic -- Panic buying -- Retail -- Sales forecast -- Time series clustering; Retail trade -- Periodicals; Service industries -- Periodicals; Customer services -- Periodicals; Commerce de détail -- Périodiques; Service à la clientèle -- Périodiques; Customer services; Retail trade; Periodicals; 658.87
• DOI: 10.1016/j.jretconser.2022.103010
• Languages: English
• ISSNs: 0969-6989

Abstract

Abstract: This research takes a retrospective view of the COVID-19 pandemic and attempts to accurately measure its impact on sales of different product categories in grocery retail. In total 150 product categories were analyzed using the data of a major supermarket chain in the Netherlands. We propose to measure the pandemic impact by excess sales – the difference of actual and expected sales. We show that the pandemic impact is twofold: (1) There was a large but brief growth at 30.6% in excess sales associated with panic buying across most product categories within a two-week period; and (2) People spending most of their time at home due to imposed restrictions resulted in an estimated 5.4% increase in total sales lasting as long as the restrictions were active. The pandemic impact on different product categories varies in magnitudes and timing. Using time series clustering, we identified eight clusters of categories with similar pandemic impacts. Using clustering results, we project that product categories used for cooking, baking or meal preparation in general will have elevated sales even after the pandemic.