Coronavirus panic buying delivers unprecedented boost

Tom Minear and Karen Collier,

April 22, 2020

HERALDSUN.COM.AU

Panic buying may have caused massive headaches to customers and shop owners, but it gave an unprecedented boost to parts of the nation’s struggling retail sector.

Hoarding of toilet paper, pasta, flour and rice has fuelled the biggest monthly boost for retail sales since records began.

Australians spent an extra $2.3 billion at the shops in March, an 8.2 per cent increase from February, with supermarkets seeing a massive 22.4 per cent jump in sales.

It is the largest month-on-month rise seen by the Australian Bureau of Statistics, topping an 8.1 per cent spike in June 2000 when households rushed to spend up before the introduction of the GST.

But the new ABS report, released on Wednesday, indicated the retail boost would be short-lived as panic buying slowed from the middle of last month and other parts of the sector experienced a major downturn.

Monthly turnover for products including toilet and tissue paper, flour, rice and pasta doubled between February and March, as parts of the economy were locked down and draconian stay-at-home rules were put in place.

Canned food, cleaning goods and medicinal products also saw an increase in sales of more than 50 per cent, according to the preliminary ABS data.

Perishable grocery sales went up 21.6 per cent while sales of all other groceries soared 35.6 per cent, but the ABS said these record figures levelled off by the end of March.

As Australians started working remotely and spending more time at home, businesses in the electrical and hardware sectors also reported sales increases.

But “strong falls in turnover” were recorded across businesses impacted by social distancing restrictions, including cafes and restaurants, clothing, footwear and accessories retailers and department stores.

It comes as Woolworths resumes online shopping for all customers this week, opening tens of thousands of extra home delivery windows. Orders will be capped at 40 items and delivered the next day.

Online shopping was temporarily suspended for the majority of customers five weeks ago as major supermarkets focused on getting essentials to the vulnerable.

RETAIL THERAPY DURING PANDEMIC

— Retail trade was up a record 8.2 per cent in March to $30 billion

— Supermarkets saw 22.4 per cent month-on-month increase in sales

— Sales of toilet paper, flour, rice and pasta doubled

— Sales of canned food, medicinal products and cleaning goods increased by at least 50 per cent

— Strong growth in hardware sales and home office supplies

— Turnover of cafes, restaurants, clothing retailers and department stores hit hard

Coles has also told customers it was reopening Click & Collect and home delivery services.

Woolworths said it was doubling its online capacity, with hundreds of supermarkets nationwide and a new “pop-up” delivery hub warehouse in Notting Hill in Melbourne’s southeast opening at the end of the week helping fulfil extra demand.

The supermarket has also partnered with couriers Sherpa and Drive Yello, which have signed up 5000 new delivery drivers to help meet soaring demand.

Woolies Managing Director Amanda Bardwell said: “We’re seeing a big increase in demand for home delivery as more and more customers seek to limit their outings in the community.”

The pop-up delivery hub has been set up at a warehouse that won’t open to walk-up shoppers. It will employ more than 400 Melburnians.