Pandemic Shopping and What it Means for Retailers

I could count the number of times I went shopping in person since the beginning of the year. Our shopping habits have changed a lot since the pandemic. Covid has accelerated the digitalization of retailers and changed the shopping habits for many consumers. The retail industry needs to rethink and plans ahead for its digital future.

Early last month, two Macy’s stores were used mainly as fulfillment centers where employees processed online orders and returns rather than a place for customers to browse and shop. Amazon is also planning to purchase department stores in major cities for urban fulfillment centers to better meet faster shipping demands.

The digital shopping trend is hard to reverse. Once people are used to the convenience of browsing online and expecting delivery to homes, it is hard to attract consumers to shop in stores frequently. In addition, the change in shopping habits will stick. Walmart reported that e-commerce sales went up 79% in the third quarter, while Target said its e-commerce business was up 155%. 2020 will be an inflection point for retail. Online shopping is expected to continue to increase in the coming years. Retailers are pushed to be ready for the e-commerce competition.

 

 

References:  

https://www.nytimes.com/2020/11/23/technology/pandemic-shopping.html

https://www.nytimes.com/2020/11/23/business/retailers-ecommerce-black-friday.html