Online platforms resurrect retail fortunes

Online platforms are fast becoming the go-to channel for multi-format retailers to expand and sustain their customer base, as the novel coronavirus outbreak has had a significant effect on traditional shopping patterns, experts said.

Between Jan 6 and April 15, fresh food sales on Walmart China's Daojia, its online mini program, and delivery platform JD Daojia rose nearly threefold, especially for items like pork, eggs, vegetables and fruit. The biggest demand was for domestically grown oranges, sales of which rose by 22 times on a yearly basis during the period. Not surprisingly, bulk of the transactions were undertaken via online platforms.

To meet the rapid demand for online shopping, retailers like Walmart have accelerated the development of prepackaged products and increased the ratio of such products to the merchandise available on their stores and online channels. By the middle of April, sales of onlineto-offline packaged pork at Walmart doubled on a yearly basis while vegetable sales rose by more than four times.

At the same time, the retailer is also offering more convenient catering choices for busy families amid work resumptions. Walmart has joined well-known restaurant brands including Xibei, Jindingxuan and Yunhaiyao in major cities to develop branded ready-to-eat dishes and have made them available through online platforms like Walmart Daojia and JD Daojia. Sales growth of such products rose by more than 60 percent during the April 13 to April 19 period, week-on-week.