More than 15 500 retail stores have closed since 2020. Debt is now a common enemy. Many had to rely on borrowing to sustain their business.
50% capacity per store, all employees need to wear a mask (and sometimes a face shield), sanitize every 30 minutes, go wash your hands every 2 hours, shift changes, 2-meter distance, sanitize everything after every customer- is just a little of what retail stores have been going through.
Covid 19 is influencing consumer spending
Around the world, consumers’ lives changed almost overnight, and their spending behaviour follows a comparative pattern.
Health & wellbeing
Since the start of the pandemic, we have seen a sharp ascent in buys for medicines, wellbeing things, supplies, cleaning materials, and such.
Stay at home initiatives
With consumers requested to remain at home around the globe and store terminations turning into the impermanent standard, the retail business must choose the option to adjust. This has constrained retailers to reconsider the client experience, similar to cafés offering curbside conveyance for dinners.
For consumers, it’s provoked them to buy items that help them telecommute, work out, sit back, revive their living spaces, and keep kids engaged.
Retail Marketers move to Ecommerce
Most companies have moved to online purchases for convenience, exposure and sustainability, even though online purchases are on the rise, customer spending has fell. Social media has become a giant for advertising services or goods it has become a place to interact with customers and get a better feel of what they are looking for.
Increasing unemployment rates and a damaged economy
Even though a few classifications see an upward pattern in online deals, customer buying power is on the decrease. Many have been dismissed or retrenchment because of the Covid flare-up between course from the Center For Disease Control (CDC), World Health Organization (WHO), National Institute of Health (NIH), and orders from around the globe, both non-and fundamental organizations, with or without retail stores, are compelled to adjust to another customer scene. This incorporates how consumers respond to new data, the market, and how it affects them.
Retail Marketers Are Feeling the Effects of COVID-19
Change is overwhelming in all aspects of life, and retailers are feeling the strain. Delivery service has been a leading focus for many, but a massive hurdle for those with closed distribution centers. In addition, retail employees are not immune to the virus either — leaving retail managers with new challenges, like balancing employee headcount due to more people taking sick leave and protecting employees from the virus by practicing social distancing and using proper personal protection equipment (PPE) like face masks.
The long term social, economic and health impacts of the COVID-19 virus are still unknown. All any retailer can do is make the best out of the situation. It is important to move to online buying as it has become the most convenient tool. Making it an experience for customers is essential as it will determine if your business can get with the time/changes that are always inevitable.
Estay.B.(2021). Preparing For The Next Era of Retail: How To Succeed In a World Without COVID-19. https://www.bigcommerce.com/blog/retail-and-covid-19/#coronavirus-covid-19-is-influencing-consumer-spending
Loeb.W.(2020). More Than 15,500 Stores Are Closing In 2020 So Far—A Number That Will Surely Rise. https://www.forbes.com/sites/walterloeb/2020/07/06/9274-stores-are-closing-in-2020–its-the-pandemic-and-high-debt–more-will-close/?sh=682b1d16729f
Written by: Lilita Tyibilika
Published: 16 March 2021