Supermarkets: Inc Impact of COVID-19 - Spain - November 2020

OVERVIEW
Key issues covered in this report
Areas covered in this report
EXECUTIVE SUMMARY
The market
Consumer spending
Figure 1: Spain: Consumer spending on food, drinks and tobacco (including VAT), 2014-20
Sector size and forecast
Figure 2: Spain: Food retailers' sales and forecast sales (excluding VAT), 2015-25
Channels of distribution
Figure 3: Spain: estimated distribution of spending on food and drink products by channel, 2019
Companies and brands
Leading retailers
Market share
Figure 4: Spain: Leading grocers’ shares of all food retailers’ sales, 2019
Online
The consumer
Who shops for groceries
Figure 5: Spain: Who shops for groceries in the household, August 2020
How they shop for groceries
Figure 6: Spain: How they shop for groceries, by gender, August 2020
Where they shop
Figure 7: Spain: Grocery retailers used for primary shop, August 2020
Attitudes towards grocery retailers and COVID-19-related issues
Figure 8: Spain: Attitudes towards grocery retailers and COVID-19 related issues, August 2020
THE IMPACT OF COVID-19 ON SUPERMARKETS
Short, medium and long-term impact on the sector
Figure 9: Short, medium and long term impact of COVID-19 on food retailing, December 2020
Opportunities and threats
COVID-19 brings new opportunities online
Figure 10: Albert Heijn’s temporary home delivery service, May 2020
Technology and robotics used to support operations
Figure 11: Aldi’s traffic light queueing system in the UK, May 2020
Figure 12: Delhaize’s robots disinfect trolleys at stores, May 2020
Collaborations enable better service
Discounters pose threat to supermarkets as shoppers look to price
How COVID-19 will reshape the industry
Supporting the local community will gain further relevance
Figure 13: Sainsbury’s volunteer shopping card, May 2020
Mobile apps create space in home delivery for smaller players
Discounters boosted by limited budgets
Supermarket sales benefit in 2020 and beyond
Figure 14: Europe Big Five: Total food retailers’ sales and forecast, 2015-25
Figure 15: Europe Big Five: Total food retailers’ sales and forecast, by country, 2015-25
The impact of COVID-19 on consumer behaviour across Europe
Concern about exposure to COVID-19 begins to rise as second wave bites
Figure 16: Europe: Those extremely worried about the risk of being exposed to COVID-19, March-October 2020*
The financial impact of COVID-19
Furlough and job losses
Cutting back spending but adding to savings where possible
Figure 17: Europe: Financial impact of COVID-19, November 2020*
Changes to shopping behaviour
Non-essential spending takes a hit
People want to spend less time in-store
Cash is no longer king
Localism rises up the agenda
Online shopping receives major boost
Assisted shopping provides challenges for grocery retailers
Second wave prompts renewed stockpiling
Figure 18: Europe: Changes to shopping behaviour since the start of the COVID-19 outbreak, November 2020*
Consumers are trying not to handle/touch products in-store
Figure 19: Europe: people who would feel uncomfortable handling/touching products in-store, November 2020*
Spending intentions
Food one of the sectors least affected by reduction in spending
Figure 20: Net balance* of expected spending on selected items in the next month, November 2020**
French consumers most likely to be planning to spend less on food
Figure 21: Europe: Net balance* of expected spending on food (excluding takeaways/home deliveries) in the next month, November 2020**
How the crisis is impacting on key consumer segments
Women and older people most concerned about the virus
Figure 22: Europe: Those extremely worried about the risk of being exposed to COVID-19, by gender and age, November 2020*
Women and older age groups also trying to limit time in-store
Figure 23: Europe: consumers trying to limit the time they spend in-store, by gender and age, November 2020*
Online shopping boom is relatively uniform
Figure 24: Europe: consumers shopping more online, by gender and age, November 2020*
Shopping locally appeals more to older age groups
Figure 25: Europe: consumers shopping more from local businesses, by gender and age, November 2020*
COVID-19: Market context
UK
France
Germany
Italy
Spain
ISSUES AND INSIGHTS
Supermarkets struggle to meet COVID-19 demand for online
Own-brand can challenge more expensive items at Christmas
THE MARKET – KEY TAKEAWAYS
COVID-19 is creating a peak in food consumption
Boost in grocers’ and food retailers’ sales
Grocers take nearly 80% of spending on food and drinks
CONSUMER SPENDING
The impact of the Brexit deal on the rest of Europe
Consumer spending on food
Figure 26: Spain: consumer spending on food, drink and tobacco (including VAT), 2014-20
SECTOR SIZE AND FORECAST
Figure 27: Spain: Food retailers, sales (excluding VAT), 2014-20
Figure 28: Spain: Food retailers, forecast sales (excluding VAT), 2020-25
INFLATION
Figure 29: Spain: Consumer prices* of food and drink, annual % change, 2014-20
Figure 30: Spain: Consumer prices* of food and drink, annual % change, January 2018-October 2020
CHANNELS OF DISTRIBUTION
Figure 31: Spain: Estimated distribution of spending on food and drink products by channel, 2019
COMPANIES AND BRANDS – KEY TAKEAWAYS
Food retailers among the few to benefit from COVID-19…
…though the pandemic has brought added costs
Mercadona, Carrefour and Auchan performing well
Lidl continues its rise
Online gains importance from COVID-19
LEADING PLAYERS
Mercadona and Carrefour continue to grow
Figure 32: Spain: Leading food retailers, sales 2015/16-2019/20
Figure 33: Spain: Leading food retailers, outlets, 2015/16-2019/20
Figure 34: Spain: Leading food retailers, sales per outlet, 2015/16-2019/20
MARKET SHARES
Figure 35: Spain: Leading food retailers’ shares of all food retailers’ sales, 2015-19
ONLINE
Online activity
Figure 36: Spain: Access to broadband connection (percentage of households), 2009-19
Shopping online for food
Figure 37: Spain: Online purchasing in the last 12 months, 2009-19
Online grocery market size
Leading online players
Figure 38: Spain: leading online grocery retailers, estimated sales, 2016-19
THE CONSUMER – KEY TAKEAWAYS
Women continue to take most responsibility for grocery shopping
Most Spaniards do one main shop as well as top-up shops
Men shop more at Carrefour and women at Mercadona
COVID-19 reinforces a sense of community and giving back
Looking forward to Christmas but spending will be modest
WHO SHOPS FOR GROCERIES
Figure 39: Spain: Who shops for groceries in the household, by gender, August 2020
Figure 40: Spain: Who shops for groceries in the household, by age, August 2020
HOW THEY SHOP FOR GROCERIES
Figure 41: Spain: How they shop for groceries, August 2020
Figure 42: Spain: How they shop for groceries, by age group, August 2020
Figure 43: Spain: How they shop for groceries, by age group, August 2020
WHERE THEY SHOP FOR GROCERIES
Primary shop
Figure 44: Spain: Grocery retailers used for primary shop, August 2020
Secondary shop
Figure 45: Spain: Grocery retailers used for other top-up shops, August 2020
Customer profiles
Figure 46: Spain: Grocery retailers used for primary shop, by gender, August 2020
Figure 47: Spain: Grocery retailers used for primary shop, by age group, August 2020
Figure 48: Spain: Grocery retailers used for primary shop, by how they shop, August 2020
ATTITUDES TOWARDS SHOPPING FOR GROCERIES IN THE COVID-19 PANDEMIC
Retailers’ efforts to support local suppliers and community noted
Figure 49: Spain: Attitudes towards grocery retailers and COVID-19 related issues, August 2020
Grocery retailers face a difficult Christmas as shoppers rein in spending
Figure 50: Spain: Attitudes towards grocery retailers and COVID-19 related issues, August 2020
COVID-19 pandemic drives an increased appetite for own-brand products
Figure 51: Spain: Attitudes towards grocery retailers and COVID-19 related issues, August 2020
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources