COVID-19 Pushed Shoppers to Switch Retailers and Brands, Advantage Research Shows

Pandemic-driven out-of-stocks, growing safety and financial concerns, and changing values have spurred shoppers to try different retailers and brands — and many U.S. shoppers plan to stay with their new-found alternatives, according to “Shoppers’ Response to COVID-19 and the Outlook for Change,” a new report by Advantage Sales, a division of Advantage Solutions.

Six in 10 shoppers chose to try an alternative to their primary retailer, either choosing another retailer’s brick-and-mortar store or online platform or Amazon during the pandemic, according to the report, which is based on the responses of 1,804 U.S. primary household shoppers and those who shared shopping responsibility participating in an online survey fielded between May 13 and May 18, 2020 by Advantage Sales’ Analytics, Insights & Intelligence team.

While many shoppers turned to other brick-and-mortar locations, guidance to stay at home, concern about contracting COVID-19 and in-store out-of-stocks led to a mass movement to online shopping on retailers’ websites or Amazon. Nearly two-thirds (65%) of surveyed shoppers reported they have ordered food and non-foods online since the start of the pandemic.

Even though online shoppers faced website glitches, delivery delays and out-of-stocks, 15% of U.S. shoppers say they plan to make more than half of their food purchases online in the future.

Brand Switching

Out-of-stocks and a switch in retail locations also moved more than half (55%) of shoppers to stray from their preferred brands during the pandemic. More than one-fourth (28%) of these shoppers said they expected to make the brand switch permanent.

“The fallout of COVID-19 — stay-at-home guidance, supply chain disruptions fueled by panic buying and pantry filling, a fear of contracting the virus and the sudden surge in unemployment — has shifted the way Americans shop, where they shop and what they are buying,” according to Kimberly Senter, executive vice president, analytics, insights and intelligence for Advantage Sales. “What’s more, according to our survey results, they plan to maintain many of their new shopping habits in the months to come.”

Among the report’s findings:

• Changes in shopper behavior are related to where shoppers live and how severely their area was affected by the pandemic.
• One-third of shoppers plan to spend more on groceries in the coming months.
• Store brands are gaining in popularity, including among prosperous Americans.

“Shoppers’ Response to COVID-19 and the Outlook for Change” includes an exploration of the pandemic’s impact on the way consumers shop and brand loyalty, plus a breakdown of implications of shoppers’ changing behavior for brands and retailers.

A second report by Advantage Sales, “The Pandemic’s Financial Impact on Shopper Behavior,” examines how pandemic-driven financial hardship and shoppers’ level of optimism or concern for their financial future are affecting buying behavior.

Download “Shoppers’ Response to COVID-19 and the Outlook for Change” and other reports at advantagesolutions.net/newsroom.

About Advantage Sales

Advantage Sales, a division of Advantage Solutions, is a leading sales agency and business solutions provider in the retail and consumer goods industry. Advantage Sales offers a full range of services — including headquarter sales services; analytics, insights and intelligence; retail services; business process outsourcing and in-store media — that create value for clients by helping them grow sales, reduce costs and quickly execute go-to-market strategies. Our solutions drive growth for clients by maximizing the availability of their brands across retail, foodservice and online channels and by optimizing how they are priced, positioned and promoted. Visit advantagesales.net to learn more.

About Advantage Solutions

Advantage Solutions is a leading business solutions provider committed to driving growth through winning insights and execution. Advantage’s customizable and technology-enabled sales and marketing solutions are designed to help manufacturers and retailers across a broad range of channels drive consumer demand, increase sales and achieve operating efficiencies. Advantage has offices throughout the United States and Canada and maintains a platform in select markets throughout Africa, Asia, Australia and Europe through which it can service the global needs of multinational manufacturers. Visit advantagesolutions.net to learn more.

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