The Long-Term Impacts Of COVID On Retail
By Optimist
For the past two years, COVID-19 has been a significant part of our lives, and it’s safe to say that not only has the world changed, but we have to. While this pandemic may be a once-in-a-century type event, there’s no doubt that its impact on consumer behavior will stay for a long time.
Previous global catastrophes have shown us that they reveal existing vulnerabilities, accelerate developing trends, and compel companies to undertake fundamental changes quicker than they had expected. This is especially true in retail.
During the Great Recession of 2008–2009, for example, e-commerce expanded while brick-and-mortar retail decreased. That tendency persisted when the economy recovered, with off-price, discount, and rising players succeeding by catering to new customer needs.
We anticipate a similar pattern but with new tendencies molded by a pandemic-driven global downturn. Specific facts, however, remain: retailers struggling before COVID-19 will most certainly see their falls accelerate. Income disparities will continue to drive businesses to off-brand and discount retailers, and online shopping will accelerate.
However, we see several other potential trends shaping the COVID-19 retail environment. In this blog, we’ll go over the long-term impacts of the pandemic on the retail sector.
An Increase In Online Consumption
With different variations of lockdown and the need for social distancing impacting the ability for stores and shops to remain open, there’s no doubt that online consumer consumption has increased tenfold. A report published by Accenture shows that the COVID-19 pandemic has resulted in a significant shift in activity away from traditional retail to an increase in communications and high-tech.
The report further stated that while retail will decrease by 4.2%, the online communications and high-tech sector is estimated to increase by 22%. This is why consumers will undoubtedly demand more connectivity, cost competitiveness, and convenience as the adoption of the platform- and ecosystem-based business models grow. Hence, businesses have turned to new ways to contact customers as fears about the spread of coronavirus persist, as do government-imposed limitations on the size of public gatherings.
Examples include pubs that sell alcoholic beverages for pickup and restaurants that entice customers to return by giving discounts on low footfall days. Another benefit is the option to order by table via mobile applications, which eliminates the need to line with others, which raises the danger of virus exposure.
Increase Health & Safety Measures
The COVID-19 virus has already resulted in some workplace closures and quarantines. As a result, retailers must have a strategy to protect employee safety while continuing to conduct business as normal. In addition to this, businesses also need to consider how they can provide a safer experience for their customers.
For example, restaurateurs are adopting the contactless dining experience, which uses advanced dining technology to provide a safe, but elegant and full-service restaurant. For example, a virtual waiting list is offered to diners, which can be accessed from their phone, instead of speaking to a host. Another very popular option that almost every restaurant has adopted is using a scannable QR code to access an interactive online menu.
Give Importance To Customers
Retailers should also consider the impact of these huge changes on the consumer and the customer relationship. How will you keep people believing in your brand, goods, and services? How are you going to adjust your expectations for today? And how do you plan to recreate the consumer experience in the future?
In this climate, maintaining customer relationships is just as critical as maintaining the bottom line. Hence, retailers should focus on investing in customer experience technologies that allow them to engage with their clients. Once the customers are used to personalized service and experience, they’re going to keep expecting it, regardless of the situation.
Conclusion
There’s no doubt that retail trends will keep changing and predicting these future trends can be very challenging in this environment. But what we do know is that retail orthodoxies will be challenged, and the sector will very likely look very different from it did before the crisis began.
For the time being, the situation may look grim. However, retailers who see the challenge and join the accumulating trends by focusing on post-pandemic investments, on the other hand, may emerge stronger and create a brighter future for workers, customers, and stakeholders alike.