Supermarkets in Taiwan have been seeing increased revenue growth as a result of the surge in domestic COVID-19 cases in recent months, the Ministry of Economic Affairs (MOEA) said Monday, forecasting that the sector will generate sales of NT$250 billion (US$8.5 billion) for 2022.
The projection was made by the MOEA’s Department of Statistics in a report that analyzed changes in consumer habits and the revenue growth of supermarkets.
According to the department, supermarkets have gradually become the main retailer for families buying groceries, thanks to various expansion strategies and sales tactics.
Furthermore, amid the surge in domestic COVID-19 cases, more people are choosing to cook at home, which means grocery shopping has increased, the department said.
In 2020, supermarkets recorded the third highest revenue in the retail sector, at NT$230 billion, moving up from fourth and replacing hypermarkets, while registering an annual growth rate of 10.7 percent, the department said.
The strong revenue growth in the supermarket business reflected a rise in domestic COVID-19 cases February to April 2020 and the panic buying and stockpiling that followed, the department said.
In 2021, when domestic cases spiked again between May and August, supermarkets’ revenue grew by an annual 8 percent to over NT$240 billion, registering growth for the 19th consecutive year, according to the department.
The uptick in grocery shopping and home cooking this year started in April, when another COVID-19 surge began, it said.
Supermarkets’ revenue for the first four months of the year was NT$81.6 billion, a year-on-year increase of 13.4 percent, the department, projecting full-year revenue of over NT$250 billion.
Meanwhile, in the restaurant business, revenue dropped 20.8 percent year-on-year between February and April in 2020, 31.6 percent between May and August 2021, and 6.9 percent in April this year.
According to the MOEA survey conducted in June 2021, 69 percent of supermarket chains in Taiwan see “price competition, low gross profit and increased labor costs” as their main challenges.
Supermarket chains are also facing stiff competition from online stores that provide delivery services, the survey showed.
Source: Focus Taiwan News Channel