Effects of COVID-19 on the Retail Industry

Many of the industry giants have suffered heavily in sales because of the closing of stores in the wake of the COVID-19 Crisis. On the other hand, a big rise in demand has been witnessed in some areas of retail business. The companies are adopting strategies to revamp their wholesale process to grab this opportunity. E-commerce is obviously providing solutions. The companies that already have E-commerce platforms or have immediately planned are in a better position to retain their customers. They have got good sales even in the times of physical closure of many of the stores.

Retail companies are taking steps to avail these opportunities by making due changes in their business models. Every industry from small to large is facing uncertainties. Businesses traditionally, depending on physical sales, are now fast moving towards E-commerce platforms. That is a new investment area where returns are fast. Expanded sales volumes can assure an early return on investment.

Importance of Safety Measures

The re-opening of physical retails will now be under the entirely changed hygiene and health safety code. Investing in sanitizers, gloves, masks, and disinfecting sprays will now be the new normal for businesses. Caring about the health- the safety of both customers and employees is at the top of the list. Retailers now need to take necessary steps to attract customers and to meet SOPs set by the monitoring bodies.

Reduction in Income

The pandemic has a big damaging effect on income levels. Family well-being and healthcare have gained very high priorities. Where it all is going to make an impact upon? The shopping list is surely an item facing possible cuts. Slashed jobs reduced the disposable income of a large chunk of remaining jobholders. The focus now will be on essentials alone. It will surely reduce sales, causing a revenue deficit.

Supply Chain Issues

The prolonged lockdown affected every walk of life. It is not only the supply chain sector but the industries face their part of the story. Increased expenses are a challenge and long-run closer have caused issues like depleted raw materials, workforce, etc. Incurring more expenses on staff safety like investing in PPEs, sanitizers, protective screens, and disinfecting are all counting towards an additional burden on revenues.

Discouraging Cash Sales

Covid-19 has set new protocols for social distancing. Cash sales then carry a big risk of transferring viruses through currency notes. The more emphases will shift to cashless sales. Plastic money is already being in wider use. The currency notes are facing another era of being discouraged by mainstream retailers. Credit/Debit cards and even mobile payments will have a future ahead. The spree will wipe out the use of cash as never before.