Changes to consumer shoppingpatterns spurred by the COVID-19 pandemic should prompt grocerystore owners to rethink their approach to using promotions to lureand retain customers, according to a new report from managementconsulting firm Bain & Company.

The report, authored by Bain& Co. Chicago partners Stephen Mewborn and Stephen Caine,Atlanta partner Sandeep Heda and London-based Expert Vice PresidentSumner Makin, claims that grocers have traditionally had only alimited understanding of which promotions drive the highest returnon investment and which break-even or lead to losses. The reportsays that grocers should take advantage of the"once-in-a-generation opportunity" presented by the pandemic toeliminate poorly performing promotions and focus on items thatconsumers really care about.

The report points out thatgrocers experienced a temporary increase in demand as consumersloaded their pantries as restaurants closed in the face of forcedshutdowns prompted by the pandemic. In the time since, customershave tended to consolidate fewer shopping trips into fewer storesto limit their proximity to other people. The change in consumerhabits has led to an influx of new customers for some grocers atthe same time stores have faced worker shortages due to sicknessand employee childcare issues. The increases in store traffic andlabor costs have combined to make the set up of traditionalin-store space to feature certain items and end-of-aisleshort-term promotions less efficient.