Bets on consumers maintaining online shopping habits during COVID-19 says GlobalData

Online retailer Gorillas launches private label range

The online retailer Gorillas bets on consumers maintaining their online shopping habits during COVID-19 as it launches a private label range, says GlobalData, a data and analytics company. 

Gorillas’ launch of a private label range is sure to resonate with the 54%* of Europeans who are currently in a financial pinch yet still looking for convenient shopping options, says GlobalData. The company notes that as the COVID-19 pandemic and the cost-of-living crisis have changed consumer behavior, retailers such as Gorillas must now look at on-demand delivery as an evolving online shopping method.

George Henry, Consumer Analyst at GlobalData, comments: “Two-thirds (66%)* of shoppers are still wary of visiting shops due to COVID-19, lending a sizeable consumer base inclined toward affordable and safer grocery delivery options. However, high inflation and soaring energy bills have prompted concerned consumers to cut back on non-essential spending, which could choke out this potential. Takeaways are expected to account for almost 39% of foodservice transactions by 2025, a marked increase on the 29% share it held in 2019 before the pandemic.”

Yet, even with the cost-of-living crisis squeezing consumers’ budgets, GlobalData’s 2022 Q2 survey found that over a third of global consumers believe the value for money means high quality. This suggests that on-demand delivery services can secure a place at a time of financial hardship, so long as consumers believe it serves a purpose, such as premium quality products and services.

Henry continues: “Q-commerce saw a boom in popularity during the COVID-19 outbreak as social distancing restricted movement. The surcharges and additional fees could be justified by the convenience Q-commerce brought to shielding households. As we move on from the pandemic, however, Gorillas is evidently convinced that consumers will pay a premium for lower-cost items – even during a cost-of-living crisis.

“The company is gambling on consumers who were won over by Q-commerce in the last two years, maintaining their online habits as entrenched behavior. However, while new product development is often born out of crisis, it is certainly a risk to launch such a large product offering at a time when Eurozone inflation hit 8.1% in May.”

For more information:
George Henry
Tel: +44 (0)207 936 6400

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