COVID-19’S LASTING IMPACT ON GROCERY E-COMMERCE · Derek Hough, Julianne Hough, Carrie Ann Inaba,...

3
www.spotsndots.com Subscriptions: $350 per year. This publication cannot be distributed beyond the office of the actual subscriber. Need us? 888-884-2630 or [email protected] Copyright 2020. The Daily News of TV Sales Monday, April 13, 2020 EVEN BEFORE CRISIS, BUSINESS WAS ON THE RISE With the impact of the COVID-19 pandemic still ricocheting throughout the U.S. economy, it can be difficult to envision retail returning to normal one day. And yet somehow it will — and much of it will look virtually indistinguishable from the pre-crisis reality. But changes in consumer behavior will be lasting, eMarketer says. Aside from the many brick-and-mortar retailers watching foot traffic and sales drop to near zero, the most profound shift in consumer behavior is happening in grocery e-commerce — and this shift is likely to have one of the longest-lasting consequences. According to the research firm’s most recent e-commerce forecast (prior to COVID-19), eMarketer expected U.S. food and beverage e-commerce sales to rise 23.4% to $32.22 billion this year, with the segment accounting for just 3.2% of total retail sales. It is both the fastest-growing and least penetrated e-commerce category — and expect these figures to be revised upward in the coming months. Grocery e-commerce has had huge momentum behind it — even prior to much of the U.S. population social distancing and staying home — with last year representing an obvious inflection point. According to TABS Analytics, 2019 was a year of hockey-stick growth for both initial trials and increasing frequency of online grocery ordering. Overall penetration among U.S. internet users jumped from 38% in 2018 to 56% in 2019, while the percentage of those who regularly ordered groceries online spiked from 17% to 37%. Online logistics are also continuing to improve. Amazon’s investment in warehouse and last-mile logistics for next-day and same-day Prime (not to mention removing its $14.99 monthly fee for Amazon Fresh) eliminated barriers to online grocery delivery. The buildouts of click-and-collect operations by Walmart and various national grocery chains helped propel that behavior forward. The flame was already lit, but the coronavirus crisis has clearly poured gas on the fire. According to Rakuten Intelligence, order volume for online grocery retailers surged 210% from March 12-15, compared with the same period in 2019. Showing similar trends, NetElixir reported that online food sales surged 183% between March 1-25, vs. the same period last year. In a CivicScience poll of U.S. adults and their digital grocery shopping habits, the percentage of those who said they increased their online grocery shopping jumped from 11% to 37% from March 1-22. And it’s very likely that these behaviors will continue, even when the coronavirus pandemic eventually subsides. Why? Because e-commerce habits tend to form during periods of intense activity, and when those habits already have momentum, they become even stickier. Millions of first-time online grocery buyers are now materializing, and millions of infrequent buyers are now doing so on a weekly basis vs. over multiple weeks or months. COVID-19’S LASTING IMPACT ON GROCERY E-COMMERCE ADVERTISER NEWS Michigan has extended its COVID-19 shutdown to April 30; if not extended later that would allow Fiat Chrysler to restart production on May 4 as it hopes. The home state of the Detroit 3 has also authorized online and remote sales during the current crisis… In a special analysis of the first quarter, the National Automobile Dealers Association says that March sales at dealerships were down 37.9%. It also notes factory incentives available now are at all-time records: $4,800 per vehicle overall and as much as $7,200 on pickup trucks… The start of production on the Ford Bronco Sport has been pushed back to September. The off-road capable vehicle had been due to start production in July… Staples stores remain open, but the chain hasn’t paid April rent, according to Chain Store Age. Landlords are said to be “up in arms,” especially since hedge-fund owner Sycamore Partners is reported to have taken a $1 billion dividend from the chain last year. Competitor Office Depot has reportedly paid its rent… Big Lots is raising money via a sale/leaseback deal for its four distribution centers. The company says it will use the proceeds to pay down debt and for growth initiatives once conditions normalize… Iowa- based Kum & Go, with 400 stores in 11 states, is bringing back full-service fueling for customers who don’t wish to get out of their car. Customers phone the main store number when they get to the pump to get an employee to come out, take a credit-card payment and gas up the vehicle. Curbside pickup of orders is also available… Nation’s Restaurant News reports DoorDash is giving independent restaurants with five or fewer locations a 50% break in delivery fees through the end of May. DoorDash fees are negotiated, so (Continued on Page 3)

Transcript of COVID-19’S LASTING IMPACT ON GROCERY E-COMMERCE · Derek Hough, Julianne Hough, Carrie Ann Inaba,...

Page 1: COVID-19’S LASTING IMPACT ON GROCERY E-COMMERCE · Derek Hough, Julianne Hough, Carrie Ann Inaba, Lit-tle Big Town, Kenny Ortega, Donny Osmond, Thomas Rhett, Amber Riley and John

www.spotsndots.comSubscriptions: $350 per year.

This publication cannot bedistributed beyond the office

of the actual subscriber. Need us? 888-884-2630 or

[email protected] Copyright 2020.The Daily News of TV Sales Monday, April 13, 2020

EVEN BEFORE CRISIS, BUSINESS WAS ON THE RISE With the impact of the COVID-19 pandemic still ricocheting throughout the U.S. economy, it can be difficult to envision retail returning to normal one day. And yet somehow it will — and much of it will look virtually indistinguishable from the pre-crisis reality. But changes in consumer behavior will be lasting, eMarketer says. Aside from the many brick-and-mortar retailers watching foot traffic and sales drop to near zero, the most profound shift in consumer behavior is happening in grocery e-commerce — and this shift is likely to have one of the longest-lasting consequences. According to the research firm’s most recent e-commerce forecast (prior to COVID-19), eMarketer expected U.S. food and beverage e-commerce sales to rise 23.4% to $32.22 billion this year, with the segment accounting for just 3.2% of total retail sales. It is both the fastest-growing and least penetrated e-commerce category — and expect these figures to be revised upward in the coming months. Grocery e-commerce has had huge momentum behind it — even prior to much of the U.S. population social distancing and staying home — with last year representing an obvious inflection point. According to TABS Analytics, 2019 was a year of hockey-stick growth for both initial trials and increasing frequency of online grocery ordering. Overall penetration among U.S. internet users jumped from 38% in 2018 to 56% in 2019, while the percentage of those who regularly ordered groceries online spiked from 17% to 37%. Online logistics are also continuing to improve. Amazon’s investment in warehouse and last-mile logistics for next-day and same-day Prime (not to mention removing its $14.99 monthly fee for Amazon Fresh) eliminated barriers to online grocery delivery. The buildouts of click-and-collect operations by Walmart and various national grocery chains helped propel that behavior forward. The flame was already lit, but the coronavirus crisis has clearly poured gas on the fire. According to Rakuten Intelligence, order volume for online grocery retailers surged 210% from March 12-15, compared with the same period in 2019. Showing similar trends, NetElixir reported that online food sales surged 183% between March 1-25, vs. the same period last year. In a CivicScience poll of U.S. adults and their digital grocery shopping habits, the percentage of those who said they increased their online grocery shopping jumped from 11% to 37% from March 1-22. And it’s very likely that these behaviors will continue, even when the coronavirus pandemic eventually subsides. Why? Because e-commerce habits tend to form during periods of intense activity, and when those habits already have momentum, they become even stickier. Millions of first-time online grocery buyers are now materializing, and millions of infrequent buyers are now doing so on a weekly basis vs. over multiple weeks or months.

COVID-19’S LASTING IMPACT ON GROCERY E-COMMERCEADVERTISER NEWS Michigan has extended its COVID-19 shutdown to April 30; if not extended later that would allow Fiat Chrysler to restart production on May 4 as it hopes. The home state of the Detroit 3 has also authorized online and remote sales during the current crisis… In a special analysis of the first quarter, the National Automobile Dealers Association says that March sales at dealerships were down 37.9%. It also notes factory incentives available now are at all-time records: $4,800 per

vehicle overall and as much as $7,200 on pickup trucks… The start of production on the Ford Bronco Sport has been pushed back to September. The off-road capable vehicle had been due to start production

in July… Staples stores remain open, but the chain hasn’t paid April rent, according to Chain Store Age. Landlords are said to be “up in arms,” especially since hedge-fund owner Sycamore Partners is reported to have taken a $1 billion dividend from the chain last year. Competitor Office Depot has reportedly paid its rent… Big Lots is raising money via a sale/leaseback deal for its four distribution centers. The company says it will use the proceeds to pay down debt and for growth initiatives once conditions normalize… Iowa-based Kum & Go, with 400 stores in 11 states, is bringing back full-service fueling for customers who don’t wish to get out of their car. Customers phone the main store number when they get to the pump to get an employee to come out, take a credit-card payment and gas up the vehicle. Curbside pickup of orders is also available… Nation’s Restaurant News reports DoorDash is giving independent restaurants with five or fewer locations a 50% break in delivery fees through the end of May. DoorDash fees are negotiated, so

(Continued on Page 3)

Page 2: COVID-19’S LASTING IMPACT ON GROCERY E-COMMERCE · Derek Hough, Julianne Hough, Carrie Ann Inaba, Lit-tle Big Town, Kenny Ortega, Donny Osmond, Thomas Rhett, Amber Riley and John

PAGE 2 The Daily News of TV Sales @ www.spotsndots.com

AVAILS Sinclair Broadcast Group is seeking a Sales and Pricing Analyst for our Cockeysville, Md., or Los Angeles offices. You will get to use your analytical skills to make a major contribution in supporting growth and profitability objectives by working closely with the Sinclair sales organizations. Bachelor’s in any business or communications discipline and 2 years of related experience required. Sales experience a plus. Find a full list of qualifications and duties, or apply now

HERE. EOE and Drug-Free Workplace! KIMT-TV is seeking an Assistant News Director to efficiently and effectively oversee a content-driven and community-focused newsroom at our Rochester, Minn., station. The qualified individual will be passionate about the issues and stories important to the communities KIMT serves. This person must be a fanatic about details. Join a growing team focused on finding the stories that matter. To apply, please visit

www.kimt.com or send resume and cover letter to: [email protected]. EOE/M/F/D/V. WFFT-TV FOX 55, Fort Wayne, Ind., is looking for a dynamic Creative Services Director who likes to tell a story and create market memorable promotions. If you are an experienced Marketing/Creative Services Director who can generate and execute powerful, memorable marketing, messaging and branding, we would like to talk to you. If you are an aggressive, strategic leader with a “we should try that” attitude, then we are definitely looking for you to join our team. Send resume and examples of your recent work to: [email protected]. EOE. WISH-TV/WNDY-TV, Indianapolis, is expanding its local sports and news content and is expanding the sales team. We’re searching for an Advertising & Marketing Salesperson with a self-starter mentality and with the ability to learn how to be customer service oriented. This individual must be able to assess needs of local businesses and then develop custom advertising/marketing solutions for clients across television and digital platforms. Resume to: [email protected]. Please include “AE - Indianapolis” in the subject line. EOE.

FREE CLASSIFIED ADS TO ALL SUBSCRIBERS This is a difficult time for the TV industry. But in the very near future, it’s likely that things will begin to return to normal and every station will need a full staff to recover and gain share. If you’re a Spots n Dots subscriber, we’re offering FREE classified ads through the end of April. We’ll post all the jobs on our website for 30 days and will run them in this newsletter as often as possible, depending on response. Send jobs to [email protected]. Please send in a word doc, or send a link to the job opening online — no PDFs, please.

NETWORK NEWS TMZ Investigates: Tiger King: What Really Went Down? will premiere on Fox tonight at 9 PM (ET). The one-hour special will delve into what really happened, with the interviews only TMZ can get, exploring outstanding ques-tions about Joe Exotic’s guilt, an inside look into Carole Baskin’s husband’s disappearance and the current status of the new investigation… The ABC special The Happy Days of Garry Marshall will air on Tuesday, May 12 and will feature an array of celebrities sharing their memories of the late director and producer, including Julie Andrews, Jennifer Garner, Richard Gere, Anne Hathaway, Kate Hudson, Ron How-ard, Jimmy Kimmel, Ashton Kutch-er, Chris Pine, Julia Roberts, John Stamos and Henry Winkler… Chris-tina Aguilera, Kristin Chenoweth and Luke Evans are among the stars that will feature in a Disney musical spe-cial for ABC. The broadcaster has set The Disney Family Singalong, a one-hour event special, to launch Thursday at 8 PM. The special will fill the gap left by the move of firefighter drama Station 19 to the Grey’s Anatomy slot, after the medical drama was forced to move up its season finale as a result of the coronavirus produc-tion shutdown. The nationwide singalong will feature ce-lebrities and their families taking on their favorite Disney tunes from their own homes. Others involved in the remote performances including Erin Andrews, Bobby Bones, Mi-chael Bublé, Auliʻi Cravalho, Jordan Fisher, Josh Gad, Derek Hough, Julianne Hough, Carrie Ann Inaba, Lit-tle Big Town, Kenny Ortega, Donny Osmond, Thomas Rhett, Amber Riley and John Stamos… Timmy Brown, a three-time Pro Bowl running back for the Philadelphia Eagles in the 1960s and later an actor, has died from de-mentia complications, the team announced. He was 82 and was living in Southern California with his son at the time of his death. Brown the actor is best remembered for his roles in the Robert Altman films MASH and Nashville, and appeared in about a half-dozen episodes of the M*A*S*H TV series. Brown had a long career in television in non-recurring roles, appearing on such shows as The Wild Wild West, Adam-12, Mission: Impossible, T.J. Hooker and Benson, among others.

HOG HEAVEN? NOT FOR CLOSED PORK PLANT Smithfield Foods will keep its Sioux Falls, S.D., pork plant closed indefinitely at the urging of the governor and mayor, though the company’s chief executive warned of dire consequences for farmers and consumers, The Wall Street Journal reports. The plant, which employs about 3,700 people, accounts for 4% to 5% of U.S. pork production, according to Smithfield. It also accounts for more than half of all COVID-19 cases in the county, state and local officials estimated, with at least 238 confirmed cases. “We understand that Smithfield has taken numerous steps to help mitigate COVID-19 spread, yet we believe there is an opportunity for you to do more,” wrote South Dakota Gov. Kristi Noem in a Saturday letter to Smithfield CEO Ken Sullivan and Sioux Falls Mayor Paul TenHaken.

4/13/2020

Jimmy Fallon

Dr. Fauci said he doesn’t think that we should ever shake hands again, which will be weird when every

job interview starts with an awkward chest bump.

Page 3: COVID-19’S LASTING IMPACT ON GROCERY E-COMMERCE · Derek Hough, Julianne Hough, Carrie Ann Inaba, Lit-tle Big Town, Kenny Ortega, Donny Osmond, Thomas Rhett, Amber Riley and John

The Daily News of TV Sales @ www.spotsndots.com PAGE 3

ADVERTISER NEWS (Continued from Page 1)it’s likely those smaller eateries are paying more than chain restaurants… The latest numbers for the restaurant industry are staggering. Black Box Intelligence has now computed full March numbers, and same-store sales were down 28.3%, with the final two weeks of the month down more than 65%... Sprouts Farmers Market is moving ahead with plans to open three stores this month (in Washington state, Maryland and Jacksonville, Fla.) and another in Estero, Fla., in June. But grand opening promotions and celebrations

will be postponed… State Farm and Progressive are joining Allstate in granting customers rebates due to less driving and fewer accidents. State Farm is giving credits of 25% retroactive to March 20 and going through May 31. Progressive is crediting 20% for April and May… Another category hit hard by stay-in-place orders is the auto aftermarket. Advance Auto Parts comps were already down 3.2% for the 12 weeks that ended March 21, but fell to -28% for the following two weeks… AMC

Entertainment, the nation’s largest chain of movie theaters with 630 now-closed venues, is reported to be in talks with a law firm that specializes in bankruptcies. AMC now carries $4.9 billion in debt. Among the company’s upcoming obstacles is that many of its theaters are in malls, which may re-open later than other venues. In addition, production on many Hollywood blockbusters has been delayed by the coronavirus crisis.

HERE AND GONE: XFL, WE HARDLY KNEW YA The XFL suspended operations late last week, with multiple sources tell ESPN the league has laid off nearly all of its staffers — a handful of executives remain employed — and currently has no plans to return in 2021. The XFL is owned by WWE CEO/president Vince McMahon and Alpha Entertainment. In a statement, the WWE said: “Given the uncertainty of the current environment, the XFL has suspended operations and is evaluating next steps.” The XFL canceled its season last month after five games as part of a nationwide shutdown due to the coronavirus pandemic, pledging to return next year. But XFL COO Jeffrey Pollack changed course last week, conducting a 10-minute conference call to inform employees of the news. Commissioner Oliver Luck, hired in 2018 to guide the most ambitious spring football league in decades, didn’t speak on the call. It wasn’t immediately clear if he’s still with the league.

4/13/2020

Darlene Rodriguez, 4NY

I’ve showered, washed my hair, put on my day pajamas and applied a smidge of mascara. I’m

ready for any and all House Party/WhatsApp/Zoom

conversations.

SATURDAY NIELSEN RATINGS - LIVE + SAME DAY

NIELSEN: STREAMING UP AGAIN IN MARCH’S H2 Streaming TV minutes continued their dramatic growth during the last two weeks of March, according to Nielsen’s latest streaming TV report updating activity during the COVID-19 pandemic. The new report, MediaPost reports, also shows a continuation of streaming’s dramatic increase in share of total TV time, which was at 24% and 23% in those two weeks, respectively, versus 14% in each of last year’s comparable weeks. Streaming’s share of total TV time was also 23% as of the week of March 16 this year, per Nielsen’s last report. Netflix monopolized the entire Top 10 viewership ranking, ending March with a 33% share of streaming minutes — up from 29% as of the week of March 16. Total streaming minutes in the third and fourth weeks of March were 168.7 billion and 161.4 billon — way more than double the 76.4 and 69.8 billion minutes recorded, respectively, in the comparable year-ago weeks. The last two weeks’ streaming minute totals were also up from the first two weeks of March, which were 127.6 billion and 156.1 billion, respectively.

DONE DEAL Nexstar Broadcasting has promoted John Lewis to vice president and GM of its broadcast and digital operations in Raleigh, N.C., (DMA #27), overseeing WNCN-TV (CBS), CBS17.com, and their related social media channels. He will assume his new responsibilities immediately. Lewis brings more than 30 years of executive experience in broadcast television management, marketing and sales to his new role at Nexstar, serving most recently as VP and GM for Nexstar’s broadcast and digital operations in Greenville, N.C. (DMA #100), where he oversaw WNCT-TV (CBS), ENCT-TV (CW) and WNCT.com.

GAS IS CHEAP, BUT THERE’S NOWHERE TO GO The national average for a gallon of gas — $1.883 as of Friday, according to the latest data from AAA — is the cheapest in more than four years, CNBC reports. The coronavirus outbreak has sapped demand for both crude oil and gasoline, just as a price war between Saudi Arabia kicked off as each sought to gain market share in the global oil market. In the last month the national average per gallon has dropped 48 cents, and current prices are 32% below what consumers paid a year ago. Prices could fall even further. “We are seeing major destruction to gasoline demand which could push the national average below $1.70 or cheaper this month,” AAA spokesperson Jeanette Casselano told CNBC. Some believe it won’t stop there. Patrick DeHaan, head of petroleum analysis at GasBuddy.com, sees the national average dropping below 2016’s low of $1.66. Prices could get all the way down to $1.49, he said, depending on how quickly the COVID-19 crisis eases.