Some Essential Retailers Are More Essential Than Others, Survey Shows

Consumers intend to continue shopping retailers of essential goods such as food more than their staple-focused counterparts even after the pandemic ends, according to a new study, indicating how consumer confidence is being shaped by the current health and economic crisis.

The study, conducted by YouGov in partnership with Barclays, surveyed 1,325 adults April 13-14 online to gauge consumer attitudes and experiences shopping “essential” retailers during the pandemic crisis.

A report on the findings distributed to clients of Barclays and authored by analyst Karen Short indicates that while all stores that have remained open are experiencing high levels of demand, Amazon and Kroger could be long-term winners among them. Amazon is seeing the highest increase in shopping frequency since the crisis began, while Kroger was identified as the retailer most likely to see continued shopping once the pandemic recedes.

“Based on the data, consumers are more likely to continue shopping at retailers that fulfill their most basic needs such as groceries … post pandemic,” Short said in the report. “Said differently, consumers’ likelihood to shop at a retailer is highly correlated to the retailer’s exposure to essential consumable goods.”

Graphs courtesy of Barclays Research

The Barclays report focused on a select group of publicly traded retailers whose “essential” goods and services offerings have kept them operating during the pandemic, including Amazon, Kroger, Coscto, Dollar General, Family Dollar, Target, Home Depot and Lowe’s. Of those, Amazon is experiencing the highest rise in average spend (up 28%), followed by Kroger (up 20%), the survey indicated. The same two retailers showed the largest increase in purchases of more than $100.

Consumers said they were most likely to shop at home improvement retailers Home Depot and Lowe’s less following the pandemic, indicating intentions to “put off” purchases of nonessential goods and services as the economy recovers, Short added. In the meantime, just 2% of shoppers said they would shop less often at Amazon, reflecting shoppers’ perception of superior convenience and safety of the online retailer, which could “be viewed even more as a ‘staple’ in the eyes of consumers going forward.”

All of the retailers showed increases in weekly visits except Kroger—which was essentially flat and has the most weekly shoppers—and Target, which saw its weekly visits decline by nearly 15%—indicating the retailer’s reliance on discretionary goods as part of its appeal.