Effects of COVID on the retail industry, future strategies, and retail post-COVID
Covid 19 has shaken the whole world and businesses have gotten their share. Even though some have raised majority have broken down and suffered more losses. The following are the effect retail industries have had in the past 2 years.
Limited face-to-face interaction, some of the measures put in place by the public health sector have limited the usual transaction methods. Social distancing and quarantine have prompted people to minimize face-to-face interactions. This has also reduced the number of customers present at a store at a given time. Most people have turned to online businesses when ordering goods and services. (Donthu & Gustafsson, 2020)
Closure of some retail businesses, most of the physical stores have been forced to close down due to the lockdown enforced in most of the countries. Due to limited order in some goods and services, some businesses have also closed down due to poor performance. Some have reduced the number of employees to sustain their businesses and profits.
Price changes in essential commodities, some essential goods, and services such as food have increased their prices to cater to the extra services offered during the pandemic. Acquiring some raw materials for the manufacturing of some commodities has also become difficult due to limited travel. This has resulted in more charges in acquiring them thus the prices of the products are higher than before.
Shift to online business, Most of the businesses have already started their shift to online. Transactions are being made online and cash transfers have been reduced. The retailers will adopt these methods to sustain their businesses thus leading to a future of more online businesses. (Donthu & Gustafsson, 2020)
Rise of new tech solutions, Due to minimal supply of some essential commodities, some of the retailers have developed solutions that are high-tech and long-lasting. These solutions have been placed in consideration of the new health protocols put in place. The creativity of the retailers has increased. This will lead to more creativity in the future and sustainable businesses that will adopt these high-tech solutions.
Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research.