Will ghost stores replace brick-and-mortar retail?

Consumers increasingly turned to the convenience of delivery and pickup options during COVID-19, fueling the popularity of virtual foodservice brands. Ghost convenience and grocery stores could be the next big trend.

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Whole Foods shifted several brick-and-mortar locations to dark stores during the pandemic, a trend that could continue post-COVID-19. (LPettit | iStockPhoto.com)
Whole Foods shifted several brick-and-mortar locations to dark stores during the pandemic, a trend that could continue post-COVID-19. (LPettit | iStockPhoto.com)

Consumers increasingly turned to the convenience of delivery and pickup options during COVID-19, fueling the popularity of virtual foodservice brands. Ghost convenience and grocery stores could be the next big trend.

“This is another example of how the pandemic has accelerated trends,” Dr. David Hughes, an international speaker on food and drink industry issues, explained during Connecting the Dots with Dr. Food!

“In the last six months, we’ve seen the establishment of more than six dark convenience stores in the UK.”

With a dark store, also known as a ghost store, consumers can place their food orders through an electronic platform. These retail orders are assembled in a nearby micro-fulfillment center and delivered straight to consumers, sometimes in less than 15 minutes. 

Consumers shift to online shopping

Online grocery shopping was already on its way to becoming popular prior to the pandemic, however COVID-19 accelerated interest in e-grocery. Pickup and delivery options for grocery helped consumers stock pantries while still maintaining social distancing.

Once consumers order food online, they are more likely to do it again. A February 2021 survey suggested one-quarter of respondents had purchased meat online in the previous month.

Opportunities for retail, chicken brands

This emerging trend is having an impact on retail stores, who have had to shift operations to streamline pickup and delivery services to meet demand. A micro-fulfillment center offers advantages to both consumers and staff placed in charge of assembling orders.

DoorDash opened a virtual convenience store called DashMart in August 2020, while Whole Foods transformed at least six brick-and-mortar locations into dark stores to minimize virus exposure during the pandemic.

Dark stores are also an opportunity for chicken brands who want to maintain visibility with consumers.

“It’s just another route to market,” Hughes said. “It just reminds me that from a food industry point of view, you’ve got to look at these emerging stores and say ‘is my product one of the ones on offer there?” And, if it isn’t, should it be in there?”

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