COVID-19 is altering how Canadian spend their money. Experts now believe that the second wave of COVID-19 in Canada could see consumers getting shortages. However, the deficits will not arise from panic buying, but rather from lifestyle changes.
During the initial days of COVID-19, the stores went running out of essentials such as toilet papers. The emptying of store shelves arose due to panic buying. Now experts say that the lengthy period of COVID-19 has shifted the consumer buying habit.
The retail is now undergoing disturbances by the change in culture induced by COVID-19. People are currently working from home and shopping online. The changing shopping culture is causing inventory issues as demands continue to change. The demand issue is arising from the channel change. According to Statistics Canada, retail e-commerce in July reached $3.9 billion, a 110 percent increase compared to May 2019.
Many retailers are now struggling to improve their traditional delivery practices. The change is causing management difficulties for the retailers. The pandemic is challenging the use of earlier sales to predict the future. It isn’t easy to make inventory decisions based on historical sales. In the coming months, the change in demand might affect the manufacturers and retailers, and consumers. However, experts say that the supply of essential items such as groceries will continue smoothly.
According to Sylvain Charlebois, a professor of food distribution and supply, the food industry has made enough preparation for the second wave. He, however, added that there will still be changes in the supply of daily essentials. Manufacturers will increase production essentials to satisfy Canadians at the time of the pandemic. “People need not to worry about toilet papers running out in stores,” said Kruger Products LP CEO, Dino Bianco. The company is doubling its inventory of raw material. This will enable them to maintain up to 60 days of inventory.