PERSPECTIVES

Since we first established The Retail OWNERS Institute^®, we have asserted that the greatest growth opportunity in retailing is between the ears of the owners. And nothing since then – not even (or maybe especially!) –  a once-in-a-century pandemic has diminished our belief. 

Independent retailers and restauranteurs have been among the first business owners to pivot to a survival mode. Why? Because they have had plenty of practice! 

As we introduced previously, the New Normal for retailers is already here. It is a new "retail clock." 

• "As the global efforts to "flatten the curve" of the coronavirus pandemic continue, there is another curve that is being flattened. That would be the seasonality of retail sales. 
  
  "And this may prove to be what really defines the New Normal for retailers. 
  
  "The customary peaks of retail spending have been flattened."

Of course, it is not just retailers who have been affected; the shoppers also have been adapting. But whereas retailers think in terms of seasons (weeks and months), the shoppers are adjusting their patterns at the daily and weekly level.

Believe it! A second chance to make a good first impression!

Yes, the shoppers WILL be returning. But boy, have they learned a lot during these pandemic times. 

They are far more comfortable with online shopping, and in many cases, eager to continue that. And the convenience of "contactless" features like curbside pickup and BOPIS (Buy Online, Pickup In Store) are welcomed.

In fact, an extensive survey from McKinsey & Company* provides considerable detail about the newly-learned online shopping behaviors of customers, and their expectations of continuing to use these new-found skills. 

Particular changes with presumed staying power: 

• More online shopping
• Less brand loyalty
• Need for "hygiene transparency"
• Back to basics & value
• Rise of the homebody economy

But hold it. Wait just a minute. Our countervailing view is that the "homebody economy" will wear thin. And while customers do care even more about basics and value, especially when it comes to Holiday shopping, they will want "special." 

Maybe you know someone like this. Or are related to them. Or are looking at them each day in the mirror.

You know; the restless, impatient ones. The entrepreneurs; the risk takers.  Those who want to be their own boss. "Do it myself!"

Our theory is that the changes spawned from these triple pandemics – the coronavirus, the economic meltdown, and the civil unrest – will also be evident in new business startups. And that includes all kind of new retail concepts. 

Out of this period of unprecedented frustration can come new-found backbones. 

For retailers, the uncertainties caused by the impacts of the Covid-19 pandemic are unrelenting. 

• "'It seems that social distancing mandates won’t be the only thing keeping crowds down at businesses moving forward,' said Ted Rossman, industry analyst at CreditCards.com. 'A significant number of Americans plan to stay away on their own accord.'” ¹

So, what should we do with this additional "found time," waiting for the customers? That's a question we CAN answer!

As you are sorting out how best to reopen, we encourage you to be bold about embracing technology. Not just a POS system upgrade with better e-commerce capability. There's much more that warrants your attention. 

There's a whole alphabet of resources out there, already being embraced by many: ML (machine learning); AI (artificial intelligence); AR (augmented reality), QR (Quick Response matrix barcodes). All enabling chatbots, robots, digital displays and much else to become "smarter" and more applicable. 

Like every natural disaster, whether a massive storm, earthquake, wildfire, we all are victims of COVID-19. 

Not all of us have suffered being infected by the virus. But, essentially everybody has suffered losses. 

• The loss of milestone celebrations of weddings, graduations, reunions, birthdays; anniversaries;
• Lost access to theaters, museums, libraries, sporting events;
• Loss of the sense of community that comes from going to work, or worship services, book clubs, or the local coffee shop; 
• Loss of income, job losses;
•  Or, sadly, the loss of loved ones. 

Few have been spared. 

Some thoughts from Nordstrom leadership that are spot on!

• “We started this company from scratch, so what would we want to be, knowing what we know now? It’s clear we can expect a new normal. And it's up to us to decide what that will look like. We're each being presented with the unique opportunity to create a future worth envisioning.”

That's what Nordstrom President and Chief Brand Officer Pete Nordstrom told Puget Sound Business Journal columnist Patti Payne on April 23, 2020.

And what he succinctly stated is exactly the challenge – and opportunity – that is confronting all retail owners. 

In order to answer whether you should re-open once you can, you first must be very confident in WHAT kind of retail operation you will be re-opening.

The only certainty of the aftermath of the pandemic is that everything will be different. Given that, what better time to re-imagine your business?