The coronavirus pandemic has caused a surge in consumer spending in China and the United States, with a high share of consumers stockpiling food. In the United States, general merchandisers or multi-purpose outlets like Walmart and Target have gained the most, with dollars sales of consumer packaged goods increasing 10 percent relative to the year before. Consumers are increasingly worried about going to retail spaces, where they could contract the airborne virus. As such, over 47 percent of consumers have reduced their day-to-day in-store spending, and over twenty percent of respondents in the United States said that their frequency of purchasing goods online had increased during this time.
Within China, the first outbreak location of the pandemic, worries of COVID-19's negative effect on multiple sectors seem to be evident, as multiple industries, including transportation, trade, and recreation, experienced declines from pre-COVID-19 levels. Sales of consumer goods dropped across the country in the first two months of 2020 when compared to the same period of the previous year. The majority of Chinese consumers expected to increase spending on medical treatments and sports after the coronavirus pandemic had passed.
As the pandemic spread, Italy became a hot-spot, with over 100,000 cases as of the first week of April. During the ensuing lockdown, E-commerce sales in Italy have seen definite increases throughout the duration of the outbreak. Large-scale retail centers, such as supermarkets and discounters, also experienced growth in sales, especially in Northern Italy, the region with the highest density of Coronavirus cases. Placenza, Cremona, and Pavia saw the highest increase in sales in that region.
Though the number of reported cases in Germany has dropped compared to a week ago, it is too soon to tell if the measures taken have successfully flattened the curve. Germany followed many of the precautions that Italy implemented, including shutting down, public spaces, sporting events, bars, and restaurants. These recommendations and official guidelines will impact the retail sector as well as almost all industries. However, it will take some time for these figures to become available so that the true extent can be seen. For example, footfall across popular shopping streets across the country decreased dramatically.
As coronavirus cases and even deaths increased in the United Kingdom,shopping patterns were slow to change. However, well-traveled shopping locations have all become less frequented, especially high-street. It's expected that clothing and footwear sales will drop substantially, and the retail sector in total will decrease due to the coronavirus.
The majority of consumers are changing their behavior, staying at home more, washing their hands frequently, and practicing social distancing. As such, most of the products being purchased at higher rates are related to these activities: hygiene and cleaning products, food, and home entertainment sales top the retail list. In contrast, consumers are spending less on activities such as going out, traveling, or hobbies. It is yet to be seen what the full effect of the COVID-19 outbreak on the worldwide retail industry will be, but one has to assume it's impact will be significant.
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