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ARTICLE · 26 APRIL 2021

How Staying-at-home Has Driven Retail F&D Collaborations

Recent social unrest and the COVID-19 pandemic have accelerated the emergence of a new "stay-at-home economy" for groceries and fresh produce in Hong Kong.

Hong KongCoronavirus (COVID-19)

Recent social unrest and the COVID-19 pandemic have accelerated the emergence of a new "stay-at-home economy" for groceries and fresh produce in Hong Kong.

In the first half of 2020, sales from supermarkets, livestock, poultry and frozen products experienced double digit year-on-year growth, while overall retail sales declined by over 33% compared with 2019 (Source: Census and Statistics Department). 

In Hong Kong, close proximity between supermarkets and retail outlets with residential estates has traditionally limited the demand for online grocery shopping. However, since the implementation of social distancing measures and flexible work arrangements, a substantial part of retail sales, including groceries, is now being conducted online. In order to capitalise on this consumer shift, grocery retailers had two choices: either invest heavily to expand their own digital platforms and build a logistics network from the ground-up, or form new partnerships

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