Undoubtedly, since the beginning of the pandemic in March 2020, retail has been suffering globally. Social distancing and fear of contagion don’t mix well with the traditional experience of trying on clothes, or browsing in malls. However, with 2021-2 ushering in hope, is the retail industry struggling as much as we think it is? Is it right to be still wary of COVID as we start to think about our Christmas shopping?
How has Retail adapted to life with COVID?
It’s fair to say that the pandemic has forced an acceleration of technology adoption in retail. 2020 saw many businesses transitioning to e-commerce with an upgraded online presence to survive. Despite the closing of many Australian retailers, some businesses took full advantage of the pandemic, and saw their profits jump significantly as Australian consumers’ pent-up demand was diverted from services to goods via online shopping.
This success set an example to other retailers of how to survive during the pandemic. The upgrading to an omnichannel shopping experience offered consumers a blend of retail and online shopping through services like click-and-collect and virtual appointments. It’s a prime example of how businesses are currently adapting to the “new normal”.
How have businesses been faring since 2020?
To be able to understand exactly where the retail industry stands concerning COVID, it’s important to understand how businesses have been faring since 2020.
In 2021, retailers have been painting quite a disconcerting picture. Despite the success of the businesses that said saw a significant improvement, a slight improvement, or the ones who said things remained about the same, there’s a flip side to the coin. Some businesses haven’t been faring well at all since the pandemic hit. This is a stark reminder to those who feel that the retail industry is getting back to its feet once more as it reveals in undeniable terms that all is not well yet for some businesses. It even explains some of FMCG’s fear; what if things don’t change? Or what if they become worse?
With annual holidays quickly approaching, Australian consumers will likely be making various trips to physical stores rather than purchasing gifts online. This behaviour has been seen as an urge to get Christmas gifts earlier, or simply just Australians doing their last-minute Christmas shopping. Many retailers are hoping that this holiday season will boost their profit margin and provide some financial recovery that they have lost during the pandemic.
Preparing for the worst.
After a huge shockwave in 2020 and 2021, it’s an unavoidable truth that some retail giants are still struggling to increase sales post-pandemic. With many businesses moving digitally, some retailers may have found it implausible to adapt to the movement. Hence, these businesses weren’t able to keep up with the surging demands and preferences of Australian consumers that were sculpted during the pandemic.
On the contrary, the past 12 months can only be described as a blockbuster to many. Percentages of sales rose dramatically and saw the stronghold that online shopping has had in recent years. Even with the introduction of omni channels and the emphasis thrust behind signing up to reward schemes, FMCG retailers still have COVID fears. Especially with the recent news of the new variant starting to spread in Australia, it comes as no surprise that some businesses are still being practical and keeping one eye open for any indication that strict restrictions may make a return.
Now is probably the time to start planning for any promotional campaigns that your business may need to increase its sales and engagement. It is never too late to promote your brand and win consumers over. Find out how iGo has helped over 3,000 businesses in achieving their goals or contact one of our promotional experts for a consultation.