Quarantined consumption: wholesalers give in to local businesses

The long lines of people in the cashier’s boxes and cars in the income of wholesalers, hypermarkets and supermarkets were postcards that will remain as part of the Covid-19 virus pandemic and its impact on all levels of everyday life.

Consumption is an example: after that phenomenon of stock From mid-March, driven by the fear of not being able to go outside and having supply problems, now sales in large stores have stabilized and the flow has moved, in large part, to the so-called “local” formats. , such as small supermarkets and warehouses.

“March was exceptional, it was billed like December. Now it has returned to normality, we are as in February ”, indicated Euclides” Tati “Bugliotti, owner of Tadicor and Super Mommy.

As he commented to The voice, the turnover is between 25 and 30 percent below last month. “In a few weeks, the drop was up to 40 percent,” he added.

In the same way, Juan Pablo Quiroga, manager of Institutional Relations at Walmart, the company that last year opened its first Wholesale Point in Córdoba, expressed himself.

“In the pre-quarantine stage, uncertainty led people to attend branches and large family groups assiduously, to make purchases with a high component of stockeo. For example, cleaning products and canned and non-perishable food, “Quiroga said.

And he continued: “The quarantine began to take effect on a Friday and on Saturday the behavior was different. Attendance at branches changed substantially and the modality is the same as it is now: large stores operate almost like local shops, people go more often, but do not go by car and make smaller purchases and products with high turnover, like dairy or vegetables. “

Quiroga’s summary of the current scenario is: “More frequent visits, but with less purchase volume at a time. And also loyalty to brands is over. It is purchased due to product availability ”.

More customers, less billing

This transfer of buyers from large stores to small ones was also certified by neighborhood stores and supermarkets.

According to the manager of the Córdoba Warehouse, Self-Service and Retail Merchant Center, Vanesa Ruiz, “there are more customers, because proximity is favored and prioritized to avoid crowds and to move close to home.”

However, that does not mean an improvement for the profitability of these small businesses, because the ticket Average purchases are down.

Ruiz pointed out that there are two factors that affect this phenomenon: the first, that consumers only take what is necessary and fair; the second, that they choose the cheapest foods, such as flour or rice.

“Instead, the ABC of the retail business is in products such as soft drinks or cold cuts, which are the ones that have fallen the most,” he added.

“April is closing with a seven percent drop in the ticket purchase compared to March. And if we compare with previous months, of normal sales, nominally we are 40 percent below, “Ruiz remarked.