Walmart shelves selling packaged food including Little Debbie brand snacks. (Photo by: Jeffrey ... [+]
Many retail businesses are doing it tough. Ever since consumers have been confined to their homes, there’s virtually zero foot traffic to stores, and shoppers are generally tightening their wallets in anticipation of a long-term economic downturn.
But some retail brands are seeing huge spikes in demand for their products, whether that’s stocking up on essential sundries, bringing their leisure activities into the home, or finding ways to educate children and work remotely. Here’s how four retail brands are experiencing the situation, the changes in buying activity they’ve noticed, and the strategies they’re using to stay ahead during trying times.
McKee Foods: shoppers are seeking nostalgia
The maker of Little Debbie snacks, Sunbelt Bakery, Fieldstone Bakery and Drake's Cakes has seen a significant increase in search volumes over the past three weeks, according to e-commerce manager Matt Guider.
“People are looking for fan favorites online, especially Little Debbie since it’s a nostalgic brand. A lot of people have comforting childhood memories of these brands, and are seeking comfort during a troubling time,” says Guider. But he notes that the company has seen an uptick on their entire portfolio, and across demographics. Guider says that the demographics have “flattened” during the event - previously the company’s sales on Amazon would skew to households under the age of 44, but strong sales are now being seen across almost every age group.
Vita Coco: double-down on advertising to capture channel-switchers
Coconut water brand Vita Coco has seen their sales increase by 183% on Amazon and by 438% on Walmart.com versus the prior year, according to the company’s Head of Ecommerce, Jim Morgan.
Morgan says that the company is growing its market share during this time, due to incremental sales, consumers switching channels, and the brands’ strong advertising investment. The brand already had a handy 45% share of the coconut water market prior to the pandemic, but is seeing that share grow even further as shoppers switch to online buying and see the company’s ads front and center on Amazon and Walmart.
While a win on that front, keeping up with demand is the challenge. Morgan says the company is working like crazy to organize inventory for as many retailers as possible. “The worst thing you can do is go out of stock.”
Manitoba Harvest: get your foot in the door with new-to-brand shoppers
Manitoba Harvest, a natural foods brand, saw 3X growth on Amazon for their hemp protein products while shoppers were stocking up on nutritious, shelf-stable foods.
When they first saw the demand pick up, the company’s VP of Marketing & Innovation Anne Thompson was initially concerned. “Is this really the time that people will be willing to try something new in their diets?” she wondered. But for Manitoba Harvest, it did in fact mark the perfect time to put a relatively new product on the map for newly health-conscious consumers.
“Routines are the hardest things for a marketer to change. But right now, everyone is changing their behavior in massive ways - including online shopping,” says Thompson. “The silver lining for us is that people are now stuck at home with a 2lb bag of hemp hearts in their pantry. It’s a great opportunity to give people inspiring recipes so that they appreciate the powerhouse superfood now in their cupboard, and when they finish the bag they will hopefully buy another, or buy our granola,” says Thompson.
An employee places packed goods tons container at the distribution center of US online retail giant ... [+]
Fringe Sport: Do good and help people
We've been helping people build garage gyms for 10 years, and in ten years, we’ve never seen demand spike like this,” says Peter Keller, Founder and CEO of Austin-based garage gym equipment brand Fringe Sport. The company has seen sales up by 4X across its ecommerce channels, requiring the company to hire more staff during a time when many businesses are facing layoffs.
“Austin was hard hit by the cancellation of the South by Southwest festival and we hired a bunch of waiters, bartenders, and busboys to staff our warehouse and keep humming along,” says Keller. “It’s been crazy, but we firmly believe (and the science supports) that stronger people live longer, happier, healthier lives and one of the best ways to get stronger is by building out your garage gym.”
Keller sees a long-term shift happening in his industry, rather than it being a flash in the pan. “I think there will be a long term effect as people are more afraid or concerned of working out in a shared gym environment and they are interested in maintaining their health, fitness, and strength in an environment that they can control.”
