A recent report by vehicle recovery and fleet management company Netstar shows that the Covid-19 lockdown has changed South African retail behaviour, and that these changes may last far longer than the lockdown itself.
Titled, “Covid-19 Movement Analysis”, the report was compiled by Netstar, a subsidiary of JSE-listed technology company Altron, in partnership with geospatial intelligence providers Geo Intelligence Corp.
The
analysis shows that some of the adjustments made by shoppers during the
lockdown may persist beyond the restriction periods, giving credence to
the idea that once established, new habits
die hard. The lockdown looks likely to have a lasting effect on South
Africa’s shopping habits.
For
instance, the time of day at which drivers choose to do their shopping
has shifted towards the noon hours. Before the lockdown, most shopping
was done during the evening, when people were
returning from work. With more remote work, and fewer commutes, it
appears that shopping is becoming the focal point of the day for some
people, instead of an errand to be squeezed in after work.
Most
shopping trips were concentrated into the midday periods during Level 4
of the lockdown. However, this trend has persisted into Level 3, despite
curfews being lifted and restrictions on
businesses being lifted.
For
instance, in Gauteng, some grocery chains saw relatively constant
shopper volumes through the day, and then sharp reductions after 16h00.
Others saw their busiest times between 08h00 and
10h00. In the Western Cape, most grocery shopping happened between 10am
and noon, with a similar steep drop-off after 4pm.
“Our
data shows that people are shopping earlier in the day and doing it
closer to home than they did before the lockdown,” said Netstar Managing
Director Pierre Bruwer. “This could be one example
of how the Covid-19 pandemic and the lockdown changes consumer behaviour
in the long-term.”
Netstar
has been able to monitor retail trends throughout the lockdown, thanks
to the telematics technology it uses to track client vehicles.
With
the activation of the mandatory Level 5 lockdown on 27 March, its
metrics showed an immediate, significant level of compliance across all
provinces in South Africa. Traffic volumes dropped
by 90% all around the country. Retail activity shifted to shopping
centres near residential areas, instead of destination shopping
districts and CBDs.
Smaller-format
stores appear to have become busier, perhaps due to shoppers avoiding
crowds at large stores due to concerns around the pandemic. It may also
be a sign of caution and restraint
due to personal economic concerns.
To
model shopping activity, analysts applied a spatial cluster algorithm
across using the locations of ignition on and off events. The data
represents trends from May to June, during Lockdown
levels 5, 4 and 3.
Click here to view the report
