Texas retailers must appeal to virus-made homebodies to survive
CHRIS TOMLINSON
You can reopen stores to the public, but you can’t make customers visit.
The more we learn about how the new coronavirus travels through enclosed spaces, the more people choose to shop online. Having a salesperson dote on you suddenly feels deathdefying, and no Instagram wall or luxe experience will block out the suspicion that the virus is hovering nearby.
Shopkeepers can argue all day about whether the customer’s anxiety is justified. But for those of us who care for an elderly family member or whose preexisting
Juan Carlos Rivera repairs a bicycle at Planetary Cycles, a local business that is thriving. condition places us at higher risk, we will always limit our risks to the necessary.
What retailers need to worry about is whether consumers are creating new habits that will last after most of us are vaccinated. The recovery will be a long ride for brick-and-mortar retailers and require permanent merchandising adjustments, according to new research by Accenture, the consulting firm.
The coronavirus and its recession have turned Americans into homebodies, an Accenture survey found. Nearly three-quarters say they will favor socializing at home for at least another six months, and almost 60 percent say they plan to use video chat.
More than half say they are watching their spending to safeguard their finances as the pandemic and economic slowdown continue indefinitely. Impulse purchases are giving way to higher savings rates. Consumers are replacing the hot new restaurant with the latest home gourmet trends.
Fifty-eight percent say they are trying new recipes and cooking techniques in their kitchens, but more importantly, 82 percent say they will continue to do so after the pandemic, according to the survey.
Half of Americans have dug out their toolkits and are doing more home improvement projects, and 75 percent say they will do more even when they can go to an amusement park instead. And, of course, everyone is shopping online more than ever.
Accenture believes the 2020s will be the “Decade of the Home.”
“Home is now the new frontier — it’s become the workplace, the schoolroom, the place to try new hobbies, the place to socialize and a safe sanctuary — so compa
nies must account for this reality,” said Oliver Wright, head of Accenture’s global Consumer Goods practice.
Consumers’ more insular thinking, however, extends beyond their houses. People see neighbors losing their jobs and closing their businesses. We are all feeling a stronger solidarity with our community, and herein lies an opportunity for local brick-and-mortar retailers.
A neighborhood business’s edge is the owner’s taste and style. I love visiting a store that surprises me with products I never imagined but instantly desired. But many of us will not submit ourselves to that risky experience for the time being.
Therefore, small shopkeepers need to remove as much friction from the sales process as possible. They must make it easy for consumers to browse inventory online and pick up their purchases without risking infection.
Unfortunately, this requires spending money when revenues are down. Smaller shops need to upgrade e-commerce software, more carefully stock shelves and improve point-of-sale systems. Then they will have to analyze sales data to understand what to stock and market it better.
Speed is of the essence. The pandemic has boosted local retail’s archenemy, which already has these tools and could soon move in next door.
Amazon is in talks with the nation’s largest mall operator, Simon Property Group, to turn those empty Sears and JC Penney stores into fulfillment centers, the Wall Street Journal reported. Using past sales data, Amazon already anticipates what people want before they want it. Soon the company will deliver those items in the time it takes to drive to the nearest mall or possibly allow customer pick up.
That kind of convenience will be hard to beat in our instant-gratification culture.
Every time I need to make an online purchase, I first try to find a local store or small business that is not linked to Amazon and has the product I need. But waiting three days for a local shop to send my item when Amazon promises it the next day requires self-discipline.
In the past, I’ve advised improving the in-store experience to bring in customers; now, smart retailers will improve their virtual shopping experience. We can all agree that surfing the Amazon website is dreadful, so smart retailers will build something special.
Hundreds of small businesses are closing every day due to the Coronavirus Recession, and we are poorer for the loss. But more empathetic consumers will save innovative local retailers who make the effort to prevent the online giants from squelching the businesses that make our neighborhoods unique.