Surge in home delivery demand stuns retailers

CEBU, Philippines —  Cebu retailers were caught by surprise by the sudden demand surge for virtual shopping and home deliveries brought about by the ‘stay home’ trend due to the imposed community quarantine. 

“Retailers who were not prepared for online selling cannot join the fray in online selling,” said Philippine Retailers Association (PRA- Cebu) chairman Robert Go.

According to Go, although the rise of online shopping is evident right now, the fast growing sector is the ready-to-eat food, and non-essential goods. But for grocery products, people still flock to the supermarkets.

Prior to the outbreak, some supermarkets in Cebu attempted to test the waters of the virtual supermarket platform, but it did not flourish due to high cost of delivery, explained Go.

“Many supermarkets tested online shopping option but due to expensive logistics, many also discontinued,” said Go adding that in Cebu people still prefer to shop physically in groceries or supermarkets.

Today, however, online shopping option is on high demand, but most supermarkets don’t have online shopping options.

“None of the supermarkets are ready for online shopping,” Go stressed.

What is evident nowadays, Go said why some food outlets are still operating despite the government order to temporarily close non-essential businesses including restaurants and cafes, because of off-premise dining option.

Kenneth Lim, president of Philippine Franchise Association (PFA) and owner of Dessert Factory chain of restaurants in Cebu affirmed that online shopping has never been so busy, until people opt to stay home and shop, and order food to stay away from shopping malls and eating outside due to COVID-19 scare.

Lim said that his chain of restaurants have experienced rise in online delivery orders, an enormous jump prior to the COVID-19 outbreak.

Lim noted an increase in online delivery orders by five to 10 percent before the general community quarantine was implemented in Cebu.

“Off-premise dining has picked up since January,” he noted.

Go observed that those who have money have been pouring their money on grocery purchases. “But, the [cash-strapped] rank and file workers just prioritize alcohol and face masks, and a little of food products.”