With the global Covid-19 virus affecting all aspects of our lives, it’s no surprise that the retail industry has taken a massive hit. Take a look at 5 key areas in retail to see how they have changed and adapted –
1 – Supply chain breaks
When the virus first hit in China, supply chains were disrupted almost immediately. Factories closed, workers were sent home and travel was restricted. Companies such as Mattel and Hasbro were hit hard as over 80% of toys are imports from China.
2 – Aggressive shoppers
With the supply chain disrupted, stock levels in stores across the world were effected. Together with mass panic buying and hording, lead to empty shelves in many stores.
3 – Luxury limits
With social distancing many fashion shows (such as Paris Fashion Week) were cancelled or drastically scaled back, putting a strain on the luxury market. Many luxury brands have also closed their outlets in hard hit countries such as China and Italy.
4 – No store visits
With lockdowns and travel and shopping restrictions, consumers are avoiding being outside unnecessarily. In a recent study in the USA shopping centres were the third most likely to be shunned, just behind public transportation and international travel.
5 – Online shopping boost
With consumers not venturing outside to shop, it only makes sense that there is a upsurge in online shopping. But online retail needs to keep up with the demand, many luxury players are being left behind because they haven’t fully embraced e-commerce.
Many details about the virus remain unknown, and health officials are still working out how far and for how long it might spread. But as more cases of the disease have been reported globally, problems for the retail industry have emerged and brands need to adapt to keep the consumer interested.