Panic Buying Shows Signs Of Waning

31st March 2020

The panic buying that has caused so much disruption in the grocery industry over recent weeks appears to be easing.

Data released by online bank Starling, which has 1.25 million UK account holders, shows transactions in supermarkets peaked two weekends ago and have been falling since.

Meanwhile, the product rationing introduced by all the major supermarket chains to help keep shelves stocked is slowly being reduced.

David Potts, the CEO of Morrisons, said yesterday his stores have already lifted buying restrictions on frozen fish, canned fruit, flour and wine, although essentials like milk, hand gel and toilet roll were still capped.

“One or two items we have been able to increase the cap but still have a cap. So I think it’s working in the rhythm of our customers and making sure that no one gets left behind,” he told BBC Radio 4’s Today programme.

Meanwhile, Aldi announced today that it was easing the temporary restrictions of four items per person that it had put in place across its entire product offering.

The discounter said that with most product availability now good, the four per person restriction will now only apply to the following items: Antibacterial wipes, hand wash and soap, shower gel, bleach, toilet tissue, kitchen towel, tissues, nappies, pasta, canned tomatoes, canned beans and sausages, part-baked bread, and beers, wines & spirits. A limit of two per customer will apply to antibacterial hand gel, UHT milk, and baby formula.

Waitrose is also removing its cap on all fresh food, so meat and fish, and other fresh goods can now be purchased freely along with fruit and vegetables, which were never restricted.

Latest market data released today by Kantar and Nielsen shows the recent surge in demand for groceries was primarily driven by people making additional shopping trips and buying slightly more each time, rather than people panic paying in one hit.

Fraser McKevitt, head of retail and consumer insight at Kantar, commented: “We expect restrictions on movement and relatively full grocery cupboards will mean the incredibly high levels of shopping trips made in March will drop off over the coming weeks.  Regular trips to smaller local stores are likely to continue, as people avoid travelling and queues at stores with one-in-one-out policies in place.  Sales of long life and non-perishable items will slow as households work their way through stocks and consumers will focus on replenishing their supply of fresh foods.

“While much-reported panic buying has been concentrated to a relatively low number of individuals so far, we anticipate that this too will subside as consumers gain confidence in the retailers’ abilities to maintain grocery supplies and keep stock on the shelves.”