Copyright © 2020 Advantage Solutions. All Rights Reserved.

COVID-19

59% of consumers say COVID-19 has impacted their shopping behavior, up from 33% in the prior week

What to expect in categories where shoppers pantry load

YesNo

Sources: Information Resources Inc; The Nielsen Company; Nielsen Spectra; Numerator – 2020

Source: Numerator survey 3/17/20–Shoppers with confirmed purchases of grocery, households, or health & beauty between 3/12 and 3/17.

Demand for health and cleaning products will likely drop after the outbreak

28%The number of shoppers replacing in-store tripswith online shopping

Demand for pantry staples will normalize after the outbreak ends

18–24 25–34 35–44 45–54 55–64

26% 36% 38% 41% 46% 45%

74% 64% 62% 59% 54% 55%

65+

41%

59%

Week ending 3/15/20

% of shoppers who said behavior was impacted

% of shoppers who said behavior was impacted by age group

Shopping behavior a�ected by COVID-1973%

Experienced product shortages at stores I’m trying

to buy from

Stocking-upon products I

wouldn’t otherwise stock-up on

Making online purchases whenI would usuallyshop in-store

Buying productsI wouldn’t

otherwise buy

Shopping in storesI wouldn’t

otherwise shop

Others

53%

28% 25% 20%6%

Highest growth categories since COVID-19 hit US% chg vs YAG(healthcare,cleaningand stock-upcategories,US multi-outlet)

TOTAL STOREHand SanitizersHH Cleaner ClothsPersonal ThermometersPowdered MilkGlovesHH CleanerToothbrush HoldersBleachMoist TowelettesSoapCharcoalDry Beans/VegetablesFirst Aid TreatmentRiceToilet Tissue

HIGHEST ACCELERATINGCATEGORIES

1.8%3.2%4.5%

15.8%1.7%

-2.5%-0.3%

-12.4%-4.9%6.8%1.7%

10.8%-0.8%

1.7%3.3%3.8%

PRE PERIOD8/8/19 – 1/19/20

3.5%169.4%72.2%57.6%38.5%20.3%18.7%

4.1%11.2%22.1%16.4%

25.5%13.1%14.4%14.5%14.4%

POST PERIOD1/20/20 – 3/8/20

1.7166.267.741.836.822.819.016.516.115.314.714.713.912.611.2

10.5

DELTA

Disposable DiapersBaby Food

Baby NeedsSanitary Protection

Prepared Food Dry MixesDry Vegetables & Grains

DeodorantDesserts, Gelatins & Syrup

Breakfast FoodCanned or Bottled Juice & Drinks

129126120113112112111111110110

INDEX LEVEL

CA

TEG

ORY

105 110 115 120 125 130

Top complementarycategories to buyersof hand sanitizer

Shoppers seek health-adjacent categories in addition to essentials

Copyright © 2020 Advantage Solutions. All Rights Reserved.Source: Numerator–2020

COVID-19

Observations by channel & key retailer

Shopping Behavior Index by Channel — YTD through March 15, 2020

Source: Numerator–2020

• The volume of households shopping these channels, while still above year ago, is slowing as people fully integrate social distancing

• Shopping is becoming much more targeted, with more shopping focused on destination stores like club, food, mass and dollar stores

Supermarkets

Drug Stores

Walmart

Target

Delivery and pick-up options gain tractionas shoppers want to limit human interaction

Channel trips are up significantly as shoppers search for products and pharmacists support non-COVID-19 patients redirected away from other healthcare facilities

Supply chain disruptions for medical supplies should be minimal given that 2/3 of sourcingis from within the US. However, Just-In-Time inventory models could threaten supplies in categories that are sourced from China

Special time is being dedicated to senior shoppers and those with health concerns.All Cafes, Pizza Huts, Snack Bars, Beverage Bars, Starbucks, seating areas and condiment stations in stores are closed indefinitely

Increased out of stocks and store tra�c has led to limits on the number of goods each shopper is allowed to purchase. May decrease hours of operation and control customer flow to minimize exposure to the virus

Rural and rest stop locations will see a decline in sales, especially as non-essential travel is banned. Chains with delivery options may have an advantage as people look to minimize human interaction

Core shoppers have a limited ability to stock up, as they are not in a position for large basket trips. These shoppers will refocus their tight budgets on long lasting food, healthcare and other essential categories

Stores in rural areas and small towns may see an uptick in trips as this is often the only modern trade format to top-up onbasic consumables

Aldi and Lidl may be open to suppliersand brands, as they may be challenged to maintain adequate supply of their private label o�erings in key categories

Closures and Shoppers causing verysoft sales but those with a strong online presence – e.g. Sephora's are better placed to o�set brick and mortar challenges

Club

Convenience

Discounters

Apparel/Beauty/Retailers/Malls

Index = 105 to 109 110–119 120–150

TOTAL BEAUTY BODEGA CLUB DOLLAR DRUG FOODGAS &

C-STORE HEALTH LIQUOR MASS MILITARY PET SPECIALTY

$ Sales vsYear Ago

Trips vsYear Ago

$/Trips vsYear Ago

HHs vsYear Ago

Buy Ratesvs Year Ago

% of HH’sreporting 86%

114

104

111

99

115

76%

78

98

98

81

96

90%

119

108

118

93

127

92%

120

107

103

109

111

98%

144

110

118

112

129

93%

115

100

109

106

109

91%

135

107

120

105

128

76%

81

92

96

93

87

78%

118

101

96

122

97

86%

112

102

111

99

113

89%

125

104

115

104

120

117%

105

99

106

100

105

90%

121

109

114

97

124

79%

114

102

123

91

125

COVID-19

FROM THE FRONT LINESServing not only our clients and customers, but our communities

2020034Copyright © 2020 Advantage Solutions. All Rights Reserved.

Making sure products are in stock for our community

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BEFORE AFTER

“I am very proud to be able to help out my store and the customers” - Stuart Kinberg

Keeping areas sanitized for everyone, ensuring both associates and customers are safe

Audrey La�erty working her 5th dayin a row sanitizing and keeping thecustomers safe at Walmart

“I’m cleaning and sanitizing Walmartto keep customers and associates safe”- Mary Kitchens