The Food Retail Challenge After COVID-19
COVID-19 triggered a massive shift from Horeca to home consumption, boosting Spain’s food retail and online grocery sectors. This transformation stresses supply chains, accelerates digital adoption, and reshapes future consumer and retail behavior.
Food retail is booming, and although after customers realize that there is no risk of scarcity, they are benefiting from the shift of consumption from "out of home" to everything at home. The Horeca market in Spain is 123 billion euros, all of it close. Therefore, not every penny will be spent at home since socializing is a crucial factor for consumption, but if we only take 50% of the new share for supermarkets. The size of the food distribution sector in Spain is 108 billion euros, this new shift would mean a temporary growth of more than 50%.
Can you imagine the impact on the complete supply chain?
At the same time, we see an enormous shift to "online" sales. Customers prefer to avoid the COVID-19 risk related to going to a store. Based on the study carried out by the market marketplace mentta, the channel sales have tripled in the past weeks. With a 2% share, Spain was one of the markets in Europe with the lowest digital penetration. If we triple the size, we are moving from 2 to 6 billion euros. On top of this, only some key players are functional in this area. Mercadona, Carrefour,…
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