As restrictions surrounding restaurants and dining out set in due to the pandemic, consumers instead headed to grocery stores. Sales at grocery stores surpassed levels never reached over the past ten years. Stores witnessed an immediate surge in customers as news about restaurant closures and dwindling inventories of toilet paper and tissue became major headlines on social media and television.
Various products from toilet paper to frozen foods saw incredible increases in sales as the pandemic set in. Not only did demand for such products increase, but so did prices, thus allowing many food related companies to maintain profitability margins.
Many economists expect the shift to grocery stores by consumers a possible lasting effect, literally changing the way consumers feed themselves.
Source: Federal Reserve Bank of St. Louis
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