Ecommerce, retail chains and kirana stores report sharp surge in sales of staples and daily necessities

Mar 19, 2020

Ecommerce platforms, retail chains and kirana stores saw a big increase in sales of staples, daily necessities and personal hygiene products in the past few days as panic buying took hold across India amid the fear of closures as Covid-19 cases rise.

Products such as rice, Atta, pulses, edible oil, sugar, biscuit, tea, instant noodle, butter, frozen food, soaps, hand washes and floor cleaners are flying off the shelves in Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Kochi, Thiruvananthapuram and Ahmedabad, said executives of Future Group, Grofers, Spencer’s Retail and sellers on Amazon and Flipkart.

The closure of offices, malls, schools, colleges, multiplexes, pubs and restaurants by almost all state governments along with work-from home directives have also boosted in-home consumption.

Big companies like Parle Products has received frenzied calls from the trade to supply stock since the pipeline has become almost dry. There is 15-20% increase over usual sales. E-grocer BigBasket said it has witnessed demand double over the past few days across cities, with order values going up 20% on average. SoftBank-backed Grofers registered an increase in demand of around 80% in Mumbai alone over the weekend while cities like New Delhi and Bengaluru clocked an average 50% spike in the past two days. Orders are up 45% by number and 18% by value.

The unprecedented demand has led to delays, with the shortage of delivery personnel adding to the bottleneck. Some fast-moving staples like onions, potatoes, rice, and wheat, are stocked out across platforms.

The unmatched demand has led to delays, with the shortage of delivery personnel adding to the bottleneck. Some fast-moving staples like onions, potatoes, rice, and wheat, are stocked out across platforms, said online grocery firms. Others, which are also dependent on imports such as coffee, dry fruits, oils and cereals, are expected to run into a supply crunch.

MCG companies ITC Ltd, Parle Products, Amul and Godrej Consumer are rushing stock to stores and said supplies of high-selling categories would meet demand.

Retailers and ecommerce firms have started to stock up on the 100 most-sold products in their stores to ensure that they can continue supplies in case of any uncertainty.

Reliance Retail, the priority is to ensure essentials are available and at continued fair prices. Future Group’s Big Bazaar stores in Delhi-NCR, Kerala and Bengaluru have seen demand for food items like rice, flour, dal, milk surge 15-20% over last several days.