How covid-19 is impacting the retail industry
With the unprecedented COVID-19 conditions our world is facing right now, all industries are being impacted especially the retail industry. A recent online survey conducted by the Chain Store Age from March 19-22 asked retailers how the COVID-19 pandemic is affecting businesses.
The results determined that 39% responded it’s had a negative impact on sales. With a combined 38% responded the coronavirus has been a “goldmine” (18%) or created an increase in sales (20%).
Here are additional insights and effects from the survey results:
COVID-19 IS HITTING SOME RETAILERS WHERE IT HURTS
Sales is the backbone of the retail industry. From communication with customers, an online presence, brand awareness, managing staff and keeping inventory, without selling products, retailers will not succeed. And with consumers ‘shelter in place’ demand creates a decrease in shoppers’ actions.
DIGITAL SALES AREN’T ALWAYS MAKING UP FOR LOST BRICK-AND-MORTAR SALES
Consumers are shopping online more since they are not able to actually go to the stores due to the closings from the virus. The survey noted that four in 10 respondents stated the pandemic is having a decrease effect on sales as consumers are delaying or buying less items than normal.
SOME RETAILERS ARE STEALING MARKET SHARE
There are certain retailers like Amazon, grocery stores, pharmacies, discount and dollar store chains that have increased hiring. Amazon has to concentrate on household fulfillment items while large chains like Target and Walmart are limiting store hours to stock shelves. There are certain retailers especially selling food and household items that are already seeing increased sales from COVID-19.
WHAT YOU CAN DO
Retailers feeling the effects of decreased sales due to the virus need to be more adaptable for consumers. Since consumers will not be brick-and-mortar shopping, retailers need to offer alternative omnichannel options like curbside pickup, drive-thru pickup, and on-demand delivery.
There are multiple third party platforms that can assist retailers help or improve omnichannel sales options. Since retailers are not able to the determine the longevity of the pandemic, they can handle their response to consumers.
