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How Should Retailers Get Prepared Against COVID-19 in 2021?
How Should Retailers Get Prepared Against COVID-19 in 2021?

August 18, 2021

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Businesses all across the globe have suffered a significant setback due to the present COVID-19 pandemic. The whole of last year, 2020, businesses have been seen scrambling to somehow adapt to the extraordinary circumstances, which have now become the new normal.

While the struggle to survive against all odds continues to hover over the entire human race, 2021 is expected to bring in some ray of hope and would be the year of transition. Instead of just grinding through the present, barring any unexpected catastrophes, businesses can plan a positive and productive future in the upcoming days to come.

The same goes for the retail industry as well. Even though economic activity has slowed down drastically, retailers need to study and understand the present scenario and devise strategies that would help them sail through these challenging times.

Since there has been a sudden surge in e-commerce and an acceleration in digital transformation, retailers need to figure out the change in the behavioral pattern of their customers. They plan their sales agenda around this new development.

Some Important Takeaways

As per the studies by the National Retail Federation (NRF), the COVID-19 pandemic has brought about some significant transformations in customer behavior, which needs to be observed closely before acting upon it.

  • Shopping online has become a new trend
  • There has been a 50% increase in online sales as compared to physical selling
  • About 60% of the people have stopped visiting physical stores, not just for essential commodities and daily requirements, but also for clothing, electronics, and other luxury shopping
  • The increase in e-commerce stores was because of the pandemic outbreak, but it indeed is here to stay due to the convenience and other benefits that it provides to the consumers
  • Since new virus variants are showing up, the fear of contracting the disease is prohibiting customers from going to public places. Hence digital adoption propensity is going to go up the gradient

What Retailers Need to Focus on in 2021

Cash Reserves

A physical retail store needs regular rolling of cash to sustain itself in the market. The primary reason for this is its fixed expenses in the form of rent, staff, and stock. With a steep decline in sales due to the current COVID-19 pandemic situation, retailers need to rework their cash inflow and try to maintain liquidity through diverse systems.

These can be done through mutual negotiations on rent, banking on hardship funds, and so on. Lender engagements for refinancing loans can also work as a positive alternative to handling working capital and fund crises.

Fluctuations in the Market Demand-Supply Scenario

Retail sales have been affected drastically during the lockdown period in 2020, especially when the entire globe was hit by the second wave of the disastrous COVID-19 pandemic. This led to the complete shutdown of many retail shops, especially those dealing in comfort and luxury items.

On the other hand, a considerable spike has been noticed in demand for groceries, pharmaceutical products, and other basic essential consumer goods. These retailers are facing an out-of-stock situation for most of their products.

Hence, to develop and maintain a long-term association with your customers, retailers need to study and evaluate the demand-supply graph properly and indulge in those items that would lead to a hike in sales irrespective of the coronavirus scenario.

Safety of the Consumers

2021 brought about the worst pandemic that has ever hit human dwellings. The second wave swept off a considerable portion of the population all across the globe. Under such circumstances, retailers need to ensure and assure their consumers that their safety is of prime importance.

To do so, they need to plan and follow safety protocols so that their customers are kept at bay, and the employees work and associate in safe environs so that there is no fear of the virus catching them.

Challenges Related to Future Supplies

The present COVID-19 pandemic scenario has brought about diverse results for different retailers. Where essential commodity dealers face a supply crisis, non-essential item dealers face a huge drop in demand. This has paved the way for long lead time and inventory warehousing for the latter.

However, it is expected that once the second wave mellows down, the demand for non-food items too would start emerging, yet there would be considerate fluctuations. Hence, retailers need to plan appropriately to deal with such risks and create contingency plans so that a market revival works in their favor and not against them.

Customer Engagement

Retaining goodwill and remaining in the good books of your consumers is highly essential to ensure long-term association with them. Retailers need to work upon devising strategies so that the trust of their customers does not get dissipated due to the extended lockdown periods. Also, they need to plan as to how they can retain future customer expectations with unmatched services.

Way Forward for Retailers

With the digital platform gaining immense popularity, physical retailers should make digitalization their priority. They need to devise methods to make their e-commerce sites visible to prospective customers. Also, they need to adopt innovative measures where they can formulate ways for engaging with their customers personally.

Last but not least, retailers need to keep in mind that there would be profound e-commerce behavior changes post-COVID-19 pandemic. Hence, making their presence felt through the digital approach is the whole and sole survival strategy they need to focus upon. 

This article was originally published on Linkedin.


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