Baking & Snack - May 2020 - 21

SPECIAL REPORT
E-Commerce

WELCOME TO THE FUTURE
In a new reality, e-commerce takes center stage.
by Joanie Spencer

N

Not long ago - mere months, in fact - online groceries
were on the radar but nowhere near hitting their stride.
Of course, Amazon's 2017 acquisition of Whole Foods
was the game-changer that accelerated the click-andcollect trends for retailers such as Target and Walmart.
But when the coronavirus (COVID-19) was declared a
pandemic, traditional consumers quickly shifted their
shopping method.
Stay-at-home orders across the country allowed
brick-and-mortar food retailers to remain open as essential businesses, but still, many consumers are choosing to purchase food from home. This "new normal" is
no doubt changing the retail landscape, especially for
fresh products that weren't previously favored as remote
purchases, but it also comes with a new set of challenges.
As people settle into new eating and purchasing habits, baking and snack companies will have new retail
roads to navigate.

©Rawf8 - stock.adobe.com

Unpacking the spike
When the pandemic hit, Nielsen data showed, unsurprisingly, a massive rise in e-commerce for CPG products that ranged from household cleaning items to
nonperishable foods. In fact, the research firm called it
"unprecedented" as the week ending March 14 showed

a 91% increase over the previous year for CPG sales online vs. in store purchases at 45%.
Food Business News reported that, according to research from CivicScience, consumers ordering more
food online nearly quadrupled from 11% on March 1 to
41% on March 22.
With around 40% of Americans urged to stay home
starting in March, CivicScience's survey asked participants
how concerned they were about being in public spaces.
In the three-week study, the number of people "very concerned" went from 17% to 53%, while those reporting "not
at all concerned" plummeted from 30% to 9%.
Much of this increase has come from relatively new or
first-time users of online grocery platforms. And the shoppers aren't the only new players to this game. Small regional
retail outlets that could not sustain enough foot traffic to
keep their doors open during stay-at-home orders shifted
their business to online-only, said Anne-Marie Roerink,
president, 210 Analytics, during an April 6 International
Dairy-Deli-Bakery Association (IDDBA) webinar.
CivicScience also discovered a correlation between
online shopping and a concern about being out in
public. Out of 702 respondents who indicated they are
shopping online for groceries more, 56% said they were
"very concerned" about being in public spaces.

www.bakingbusiness.com / May 2020 Baking & Snack 21


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Baking & Snack - May 2020

Table of Contents for the Digital Edition of Baking & Snack - May 2020

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