Lockdown economics: which SA online stores have made a mint
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The Covid-19 pandemic has disrupted consumers’ lives and battered their finances. Yet since lockdown level 5 began, smartphones and PCs have emerged as the new heart of the home, prompting a different kind of consumer behaviour.
Research house Growth from Knowledge (GfK), which piloted a consumer survey in 30 countries, including SA, says the majority of consumers now expect the crisis to continue for more than 18 months. And this will have consequences for how they purchase goods.
Online interviews for the survey were conducted during each week of the various stages of lockdown (stages 5, 4a, 4b and 3).
Unsurprisingly, online sales are up. Almost a fifth of respondents made purchases in level 5, which grew to 26% during level 4, and by level 3 it was up to 30%.
Rachel Thompson, insights director at GfK SA, says consumers were forced to experiment with online shopping because of the pandemic and now feel that it is a viable option, even when fears subside.
But the financial impact of the pandemic means consumers are seeking better value: 44% say they will be reducing purchases to save money even after the pandemic, says Thompson. "One of the main barriers to online is the cost of delivery — 66% of consumers expect free delivery, and they also want delivery to be fast."
"Click & collect is small but it is gaining momentum during lockdown because it alleviates concerns about speed and cost of delivery. It also helps where consumers live in townships or remote areas and normal overnight delivery options are not available," adds Thompson.
The surprise success of the lockdown has been Shoprite group’s Checkers Sixty60 app. The retailer says lockdown has altered customer behaviour, which has worked in its favour.
The app, which only launched last November, deserves credit for scaling up its service at a rapid pace.
Shoprite says in-store visits are less frequent (a 7.4% drop), but basket sizes are larger (their value is up by 18.4%) and online shopping using Sixty60 is up. The company says it plans to invest more in new offerings as online commerce purchasing behaviour starts to become more prevalent.
Covid-19 has presented the group with opportunities, including a broader e-commerce base. The result is that Sixty60 is launching in new areas on an almost weekly basis.
A spokesperson tells the FM that for a time during lockdown, Sixty60 switched to same-day delivery, ...
Research house Growth from Knowledge (GfK), which piloted a consumer survey in 30 countries, including SA, says the majority of consumers now expect the crisis to continue for more than 18 months. And this will have consequences for how they purchase goods.
Online interviews for the survey were conducted during each week of the various stages of lockdown (stages 5, 4a, 4b and 3).
Unsurprisingly, online sales are up. Almost a fifth of respondents made purchases in level 5, which grew to 26% during level 4, and by level 3 it was up to 30%.
Rachel Thompson, insights director at GfK SA, says consumers were forced to experiment with online shopping because of the pandemic and now feel that it is a viable option, even when fears subside.
But the financial impact of the pandemic means consumers are seeking better value: 44% say they will be reducing purchases to save money even after the pandemic, says Thompson. "One of the main barriers to online is the cost of delivery — 66% of consumers expect free delivery, and they also want delivery to be fast."
"Click & collect is small but it is gaining momentum during lockdown because it alleviates concerns about speed and cost of delivery. It also helps where consumers live in townships or remote areas and normal overnight delivery options are not available," adds Thompson.
The surprise success of the lockdown has been Shoprite group’s Checkers Sixty60 app. The retailer says lockdown has altered customer behaviour, which has worked in its favour.
The app, which only launched last November, deserves credit for scaling up its service at a rapid pace.
Shoprite says in-store visits are less frequent (a 7.4% drop), but basket sizes are larger (their value is up by 18.4%) and online shopping using Sixty60 is up. The company says it plans to invest more in new offerings as online commerce purchasing behaviour starts to become more prevalent.
Covid-19 has presented the group with opportunities, including a broader e-commerce base. The result is that Sixty60 is launching in new areas on an almost weekly basis.
A spokesperson tells the FM that for a time during lockdown, Sixty60 switched to same-day delivery, ...
