Abstract

Traditional family owned retail shops are the backbone of Myanmar’s consumer market. As the final node in the grocery supply chain, they sell all types of dry foods, i.e., processed and packaged, condiments, snacks, and beverages to final consumers. To some extent, they also supply basic staple grains, i.e., rice and pulses; dairy products; eggs; kitchen crops; and tobacco and alcohol. About 85 percent of all consumer goods in Myanmar are sold through these shops. In the food and grocery sector, these retail outlets, including wet markets, account for 90 percent of all sales, with the other 10 percent accounted for by fast-growing supermarkets. Because of the importance of traditional retail outlets in the last mile delivery of a wide variety of foods to consumers, any challenges they encounter from the COVID-19 crisis and corresponding policy responses to contain the virus have important implications for the availability and affordability of food for final consumers. This policy note is the first in a series of reports presenting results from rounds of a telephone survey of a sample of owners or managers of food retail shops located in the two largest cities in Myanmar, Yangon and Mandalay. The phone surveys are designed to provide a better understanding of the effects of COVID-19 shocks on Myanmar’s agri-food marketing system through the perspective of small-scale food retailers in urban areas. This policy note focuses on the demand side and overall business effects of the COVID-19 crisis on these food retailers. Phone interviews were conducted with 426 retail shop owners or managers between 8 and 15 July 2020. Eighty percent of those surveyed were in Yangon, with the rest in Mandalay.

Highlights

  • As the final node in the grocery supply chain, they sell all types of dry foods, i.e., processed and packaged, condiments, snacks, and beverages to final consumers

  • Because of the importance of traditional retail outlets in the last mile delivery of a wide variety of foods to consumers, any challenges they encounter from the COVID-19 crisis and corresponding policy responses to contain the virus have important implications for the availability and affordability of food for final consumers

  • A majority of the food retail shop owners or managers sampled for our survey are women

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Summary

Key Findings

Half of food retailers have experienced challenges due to government restrictions since the start of the COVID-19 crisis and a third experienced challenges in June. Estimated demand for food products has declined by an average of 30 percent compared to the same time in 2019. Retailers report a 28 percent year-on-year decline in the number of customers purchasing food and groceries and in the amount of food purchased. Safety measures were adopted by 60 percent of shops since the start of the COVID-19 crisis, but only 43 percent of food retailers continued to implement them in June. Financial challenges are looming for food retailers – 75 percent expect a decline in revenue compared to the same time in 2019, and those that expect a decline estimate that revenue will fall by an average of 30 percent. One-fifth reported that they used their personal savings to cope with this challenge, but doing so may not be sustainable in the long term

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Introduction
Characteristics of Food Retail Shops
Restrictions on businesses
Curfew order
Changes in demand for food products
Lower than Usual Same as Usual Higher than Usual
Travel restrictions make it hard to reach suppliers
Used personal savings
Adoption of safety measures
Total shops adopting at least one safety measure
Financial outlook
Respondents perspectives on policy options
Policy Recommendations
Findings
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
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