Retail in times of the coronavirus

Monday, July 13, 2020

Without a doubt, the COVID-19 pandemic came to change the world we have always known, and many industries have had to adapt, change and evolve to continue operating. Retail is not an exception.

It has become an indispensable industry, specifically supermarkets and convenience stores.

An example is H-E-B, the chain that in January was ranked as the top grocery store in the United States, according to the annual Dunnhumby survey.

Like other supermarkets, this store has registered an 8.7% increase in sales to comparable stores in Mexico, and also has a great acceptance in its online store and Pick & Go platform, where customers place their orders online, then pick them up at the supermarket.

According to the statistical portal Statista, previously in the United States, eCommerce retail represented 11% of sales, while 89% belonged to those made in physical stores. This last percentage was even higher in Mexico.

But, the coronavirus health emergency has accelerated the growth of retail eCommerce in both countries, which has presented complications for companies to cover demand.

On the other hand, in the case of Mexico, although 14% of consumers began to make purchases online, data from the data and consulting company Kantar showed that various supermarkets and convenience stores have registered an increase in their physical sales of up to 10.8%. However, for other retail companies the outlook has been different, which is why they have seen the need to reinvent themselves, selling online.

But, what will happen to the retail industry post coronavirus?

Although it is not known for sure what will happen to this sector and its market, there are some trends:

Retail e-commerce will continue to grow, so that more brands enter this type of sales.
Implementation of physical and digital channels, to satisfy both types of customers.
Provide the option to buy online and pick up in store.
The use of more technology to grant a new experience for customers, whether it will be with exclusively electronic payments, implementation of QR codes, or other ways.

The retail industry will need to ensure a good shopping experience to maintain its success, through good customer service, instant satisfaction, product testing and practicality.

At DICEX, we want to support you to continue growing your business through innovative retail logistics that meets the expectations of your customers.

News made easy.
Source: Entrepreneur, America Retail y Revista Énfasis Logística