Changes to consumer shopping patterns spurred by the COVID-19 pandemic should prompt grocery store owners to rethink their approach to using promotions to lure and retain customers, according to a new report from management consulting 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 President Sumner Makin, claims that grocers have traditionally had only a limited understanding of which promotions drive the highest return on investment and which break-even or lead to losses. The report says that grocers should take advantage of the "once-in-a-generation opportunity" presented by the pandemic to eliminate poorly performing promotions and focus on items that consumers really care about.

The report points out that grocers experienced a temporary increase in demand as consumers loaded their pantries as restaurants closed in the face of forced shutdowns prompted by the pandemic. In the time since, customers have tended to consolidate fewer shopping trips into fewer stores to limit their proximity to other people. The change in consumer habits has led to an influx of new customers for some grocers at the same time stores have faced worker shortages due to sickness and employee childcare issues. The increases in store traffic and labor costs have combined to make the set up of traditional in-store space to feature certain items and end-of-aisle short-term promotions less efficient.