Prolonged lockdown pushed up grocery bills: Survey

NEW DELHI: Consumers paid more for essentials and groceries during India’s lockdown that started on 25 March as discounts and promotions, typically offered by retailers, went missing during the initial phases of the curbs that disrupted availability of supplies, a survey by LocalCircles has found.

Consumers paid more during the lockdown than they did before this period because of reduced discounts offered by retailers and traders and not on the back of price hikes by FMCG companies, LocalCircles, a social media and community platform, said on Tuesday.

“Many consumers reported on LocalCircles that during lockdown 1.0 to 4.0, they ended up paying more for many essentials and grocery products as compared to pre-lockdown. This was not due to an increase in prices by the manufacturer, but because traders and retailers reduced discounts and some, per consumers, even resorted to charging above MRP,” it said in a release.

LocalCircles received 16,500 votes on a survey asking consumers about their experience of buying essentials prior to and during the lockdown.

They were specifically asked about their experience with regard to pricing of goods.

Of those surveyed, LocalCircles found that 25% consumers paid a similar price for goods purchased prior to and during the lockdown; 49% of those surveyed said they paid higher prices as discounts were lower once the lockdown commenced.

Around 23% said for some items they were charged above the maximum retail price.

Discounts were missing from online platforms too as companies focused more on order fulfilment rather than offering promotions.

"Prior to the lockdown, various retailers and ecommerce grocery apps were offering big discounts as the grocery supply market has been heating up with the arrival of apps like Amazon Pantry and Fresh, Flipkart, Big Basket, Grofers and the latest entrant JioMart. But during the lockdown, retailers as well as e-tailers minimized or eliminated the discounts they offered, forcing consumers to shell out more for the same products," LocalCircles said.

The survey also asked consumers whether they have moved to shopping offline now that India has eased restrictions on movement.

Over 15% said they have been buying via e-commerce retailers, while 8% said they place orders via WhatsApp. 19% said they order groceries through their neighborhood stores, while 53% said they have been buying from the local retail stores or market.

“This means that despite lockdown relaxations, 28% consumers are still getting packaged food and groceries delivered at their doorsteps. The primary reason for this seems to be the effort to keep themselves and their family safe from the coronavirus infection by not stepping out of homes unnecessarily,” the survey said.

Many consumers indicated that with all physical retail now functioning as India kick-starts 'Unlock 1.0', they are hopeful that the discounts will once again make a comeback on retail stores as well as on the e-commerce grocery apps, allowing them to save on essentials in this time of crisis. LocalCircles said.