Covid-19 will Change Retail Forever – Here’s How
In the midst of a global pandemic main street is struggling. From Gap to Staples, retailers large and small are trying to maintain their business and stay afloat, with many wondering about the long-term impact of coronavirus on the retail and ecommerce industry.
Indeed, there are growing signs that the pandemic could impose permanent lasting change on retailers far beyond the end of the shutdown with the after effects of coronavirus changing how consumers shop and likely requiring merchants to innovate to keep pace.
Here are three ways coronavirus will change American retailing forever…
Fewer stores, more ecommerce
A recent study shows that overall, 60% consumers have purchased more goods since the shutdown began and that trend is set to stick, with Mintel now predicting huge growth for online retail this year. Experts also expect a chain of business failures among larger retailers, and an escalation in the decline of main street after the pandemic.
The changing nature of retail and change in consumer purchasing behavior is leading to many retailers using the Covid-19 crisis as an opportunity to re-evaluate ecommerce operations and pivot quickly to remain competitive, and this will lead to fewer stores and more ecommerce.
Rapid Technology Adoption
The Covid-19 crisis is forcing retailers to act much more quickly than they normally would. Digital transformation is something we’ve been talking about for a long time in retail, but many brands are swifty moving online – a quick glance at Shopify’s recent sales surge shows some merchants are quickly adapting operations to survive the coronavirus. Other retailers are opening up multiple channels online using Amazon Marketplace and eBay.
The shutdown is pushing consumers online and this creates a huge opportunity for smaller players, especially in niche sectors that traditionally didn’t operate purely online, like gardening and home fitness product suppliers.
Experts suggest more retailers will now take a deeper look at the tech stack and recruit new partners that can help ensure the entire retail operation is fit for purpose post Covid-19. Leading analytics company Forrester even talks of the new era of the Digital Operations Platform, where legacy ERP is phased out for flexible platforms better suited to support modern digital business. In an era of rapid change, agile technology stacks will be vital for merchants to react quickly to the coronavirus challenge.
BOPIS Will Accelerate
Buy-online pick-up in-store (BOPIS) and curbside pickup have become increasingly popular, but with more stores and restaurants beginning to reopen and needing social distancing and safety measures in place, expect a major uptick in new zero contact BOPIS systems which allows guests to order their item online before collecting it safely from outside or via car delivery.
Retailers exploring the BOPIS model need to ensure they have in place the underlying technologies that enable a smooth transaction. This includes integrating BOPIS early in the checkout cycle as part of the range of buying options as well as the ability to implement accurate/real-time inventory management – it’s vital to have an accurate picture of which stores have what inventory so that shoppers can select the most convenient location and not be disappointed when they arrive at the location to pick up their product.
Even with BOPIS increasing over recent years, the necessity of using it now is likely to cause permanent adoption to spike. More and more consumers are choosing to pick-up in store to save money and avoid the high shipping costs of next-day delivery. According to Brian Cornell, CEO of US firm Target, when a customer orders online and uses BOPIS about 90% of the cost goes away. So, there are some hefty benefits for stores to keep the adoption of these services high.