COVID-19 and the Future of Retail
What can providers expect during and after the pandemic?
- By Rob Baumhover
- Dec 01, 2020
It’s no secret that circumstances over the last six to nine months are
forcing business owners to reevaluate and make changes to their once normal
operational strategies. To thrive in our new normal, we must shed our traditional
sense of retail and reimagine the future of our brick-n-mortar store.
What rises from this crisis is up to us.
Let’s look at some of the strategies that business owners are putting into
motion now and as they move forward into the future:
Curbside Pickup and Delivery
One of the first pieces that almost everyone had to incorporate immediately
was to offer curbside pickup and home delivery to their customers. Most
providers, if not all, had some form of home delivery built into their daily or
weekly operational strategy when assisting their customer base. But for the
most part, curbside pickup has been a completely new element of service and
one that has been utilized more than expected. Our customers were forced
to change their shopping habits literally overnight. They were now being told
they couldn’t go into their favorite retail stores or, worse yet, their favorite
retail store was closed. Thankfully, because HME providers are in business
to help others, they transitioned from face-to-face orders to phone orders in a
matter of seconds, serving their customers just like they did before, but now
adding the option of delivery or curbside pickup.
Even now that some of the restrictions are being lifted, many customers
either still don’t feel comfortable coming back in or have found that their
new means of shopping works better and is more convenient for them than
physically coming into the store. According to Podium (podium.com), which
provides a customer messaging platform, the overwhelming majority of
Americans have used curbside pickup and local delivery services (84 percent)
and expect local businesses to continue offering them (86 percent).
Bring Your Storefronts and Exteriors Alive
The next strategy that correlates to your customers doing more curbside pickup
is the strategy of bringing your storefronts and exteriors alive. This space is
now what the majority of your customers will see either as they drive or walk
by or as they drive up and await their order that is being taken out to them.
Merchandise your front windows like you would on the sales floor. It allows
these customers who chose to shop outside the same feeling and opportunity
as if they were in the store with you. Make sure to set aside the closest parking
spaces available to those windows for those who choose to stay outside and use
curbside pickup. The window space can be small and not ideal for displaying
items, but be creative with how and what you display, making sure to change
it regularly to give customers a different look and idea of everything you carry.
Look for payment options that allow these customers the opportunity to pay
over the phone with a credit card so there’s no need to exchange cash or card.
Evaluate How Physical Store Space Is Used
The next element to evaluate is the way we use our physical store space. While
fewer customers are coming in, customer expectations are higher in terms of
health and safety measures. Our stores need to be more generously spaced out
and our staff must be trained on how to make every guest feel safe and comfortable.
Do this by creating larger gaps between displays, products, and fixtures
all while showing empathy and awareness around their health and safety.
Provide a sanitization station at the front of your store so shoppers can easily
sanitize their hands before touching anything. According to a study conducted
by Salesforce (salesforce.com), shoppers of all generations—particularly those
in the 40+ group—expect stores to enforce mandatory social distancing and
PPE policies. Give consumer’s confidence to shop your store and evaluate your
store’s stance on cleaning measures, store traffic maximums, social distancing,
and contactless delivery methods.
The CDC is a great resource for all social distancing guidelines. Our experts
in VGM & Associates have also released three new resources to help our
members navigate the new business climate post-PHE. These resources include
a guide to technology with a focus on telehealth, a remote working guide to
help if you decide that some sort of virtual working environment is at your
company to stay, and a re-opening checklist to help businesses prepare for the
new environment. All of these playbooks can be found at vgm.com/playbook.
The last element to evaluate is your e-commerce platform: (a) do you have one
and (b) if so, does it reflect your store branding and show everything you have
to offer? The fact of the matter is, not everyone feels comfortable shopping in
stores. In a survey conducted by augmented reality company Vertebrae (vertebrae.com), they found that one out of every two shoppers (48 percent) still do
not believe it’s safe to shop in stores. I believe it’s going to be quite some time
before consumers feel comfortable again, especially those deemed high-risk or
ages 65 and older.
However, younger consumers are also relishing in the contactless purchase
options. Think of your e-commerce as if it’s your store. What’s our first instinct
when we need something? It’s to pick up our phone or go online and research
it. Many providers don’t have an e-commerce platform; a good number of
providers who do have e-commerce do not consider it as part of their daily
strategy. For those providers who don’t have an e-commerce platform, I would
consider incorporating one very soon. It would add another way to meet your
customer’s needs directly. For those providers who have e-commerce but
don’t know the last time it was updated or maintained, I would recommend
making it a daily or, at the very least, a weekly strategy. By reviewing it daily or
weekly, you are making sure all of the essential items you carry are as visible
as possible to those customers looking for them. Here are some direct benefits
of an e-commerce platform:
- Fast Go-to-Market Strategy
- Low Cost to Set Up
- Shoppers Often Start Online
- Ability to Reach New Customers
- Meeting Customers Where They Are
The writing is on the wall, and those who are innovative and willing to
adjust in these hard times will survive, and their business will be stronger long
term because of it.
This article originally appeared in the Nov/Dec 2020 issue of HME Business.
Rob Baumhover is the director of VGM Retail (www.vgm.com), which helps VGM members diversify their businesses through improved retail operations.