Retail industry impacted by COVID19

The coronavirus pandemic has adversely impacted businesses globally. The retail industry among the frontline industries that are fighting against overcoming the challenges which are appearing due to COVID-19.

Retailers have been forced to make tough decisions to temporarily close either all or some of their stores because of the curfew decisions in many countries, leading to financial troubles.

In response to the rapidly changing climate and uncertainties surrounding COVID-19, many retailers have taken action. For some, like Macy’s, Apple and Sephora, they temporarily closed their doors to help reduce the spread of the virus. For others, like Walmart, Target and Dollar General, it means adjusting shopping hours in order to give associates more time to restock and clean stores.

Clearly, this is a growth opportunity for e-commerce. People need essential goods, stores are closing, food stores have empty shelves, and many will be at home working remotely, so even those who have limited their online shopping will have little choice but to embrace it more.

With panic buying driving food sales, this will be the very unfortunate shot in the arm online grocery sales has waited for. And of course, the major players will gain the most, but smaller sellers with high-demand goods will do well too. It’s been predicted that certain e-commerce categories will benefit more than others during this time.

But for those merchants that operate physical stores as their primary, especially for non-essential verticals, the digital gain is very unlikely to offset the physical store losses.

In such a situation of a pandemic outbreak, implementation of automation of services for all retail operations is much needed. Right from inventory management to sales which will help in enhancing business efficiency and transparency.

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Within Performance Brands Corporation tracks the effects of COVID-19 on e-commerce across a number of specific sectors by monitoring and comparing data from selected companies on an annual basis. Here are some of their notes:

Omnichannel companies in this context are those with retail storefronts and presence on the Internet. One would expect this business to increase as more and more people turn to their online wings to make purchases. However, sales from the surveyed limited sample size do not assume this – with both revenue and conversion rates declining on an annual basis.

But for those merchants that operate physical stores as their primary, especially for non-essential verticals, the digital gain is very unlikely to offset the physical store losses.

In such a situation of a pandemic outbreak, implementation of automation of services for all retail operations is much needed. Right from inventory management to sales which will help in enhancing business efficiency and transparency.

For more details, subscribe NOW to get the latest updates.

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