Analysis of the Effects of the COVID-19 Pandemic on the Food Retail Industry and Developing Solutions for the Future

Within the scope of the project, it is aimed to define the effects of the restrictions in the pandemic process and the changes in consumer behavior on the food retail sector, taking into account business models, supply chain, employees and spatial priorities, and to reveal adaptation strategies and future projections. The prominent findings of the research are that the pandemic accelerated the change in consumer behavior that existed in the sector before the pandemic. It is understood that both physical and virtual merchandising will take place in the future of food retail in response to the increasing demand for online shopping in this process. In terms of business models and crisis management, there are differences between local, national and discount markets depending on institutionalization and capital size. It is understood that both discount markets that stand out with the number of stores and access to customers, and local markets with limited capital do not take into account the distribution-delivery cost of online shopping. However, the increase in virtual retailing reveals the need for more warehouses and dark stores in the city. On the other hand, it has become very critical for companies to design their supply chain durable and flexible in crisis conditions. The fact that Turkey is strong in terms of both agricultural and industrial production in terms of food products has relatively reduced the problems that may be experienced in this regard. According to the findings, establishing local-short supply chains and working with multiple suppliers are strategies that are considered important by businesses. New digital business models have to change food retailing from the traditional linear structure to a network structure that allows each set of ingredients to connect directly with the final consumer. Small-scale facilities located close to consumers can help reduce environmental impacts by reducing storage and transportation costs. Effective management of retail logistics activities will directly help reduce the negative effects of freight movements on the environment and urban space. The distribution of online sales products from the warehouse instead of the store will create the need for more warehouse space and more neighborhood-scale dark stores will be needed in terms of distribution costs. Cooperation in distribution and route optimization are gaining importance for businesses in terms of both environmental damage and time and cost.