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The nationwide lockdown left pockets empty for many South Africans as formal and informal businesses closed and jobs were eliminated.
But for those in the food retail business, the lockdown has brought home bacon.
This is in accordance with the latest Essential Food Price Monitoring Report, prepared by the Competition Commission, which concluded that “[food] retailers, in particular, benefited financially from the lockdown ”.
The researchers’ analysis found that the reason was that more people prepared food at home and therefore bought the food they needed to make it.
“The introduction of the national lockdown triggered panic buying behavior and a shift from consuming restaurants and other food services prohibited under lockdown to home-prepared food,” according to the report. “This would be expected to result in increased demand at the retail level given the change in consumption patterns which, in turn, would see increased volume at both the retail and wholesale levels.”
Aside from the Massmart group of stores, all of the retailers reported an increase in sales volumes or sales revenue (and both in some cases) in their latest financial statements, the researchers found.
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