In The Post Epidemic Era, What Will Happen To The Retail Industry In The United States?

"We should now have shopping centers with totally different atmospheres, experiences and retailers to create a more diverse environment. Let consumers go to shopping malls one weekend after another, experience totally different experiences in essence, and let each shopping center meet the expectations of specific audiences. "

- Ethan chernofsky, vice president of marketing, placer.ai

Nowadays, many Americans venture back to shopping malls and shopping malls and soon find that everything is different. Different degrees depend on different retailers. Some stores have limited occupancy rates, closed fitting rooms, floor markers for designated standing positions at checkout, and Plexiglas erected at the registration desk. Contactless delivery has also surged, and roadside pickup is not limited to takeout. Some of these changes may be long-term, while others may disappear after the outbreak. At the same time, shopping malls must find ways to minimize the impact of the epidemic on consumers and themselves.

In mid July, the National Retail Federation issued a statement encouraging retailers to uniformly require customers to wear masks across the United States to protect the health of customers and store employees. Matthew Shay, President of the National Retail Federation, told Fox business that NRF was studying the economic factors and did not want retailers to be closed down again because of the infection. He said it made sense to call on people to wear masks because there were reports that it might take 18 to 24 months for a variety of vaccines to be put on the market.

"And before that, we all need to change our behavior, although we don't want to change."

During the period from the second to the 30th of 2020, cotton companies changed their response to the coronavirus according to the survey. Generation Z consumers (64%) pay less attention to the virus than millennials (70%) and Generation X (71%).

What will happen to the U.S. retail industry in the post epidemic era?

According to the coronavirus response survey, before the outbreak, only 30% of consumers said they often shop online. The majority of respondents (55%) said they do it "sometimes," 14% said they rarely shop online and 2% said they never shop online. But after the outbreak began to spread across the United States, 44 percent of consumers said they were shopping online more often than before. Fifty seven percent of people who shop online feel safer than those who shop online.

A survey by McKinsey & Co. found that apparel executives expect online penetration to grow by 13% after the outbreak. "Unless the store provides a compelling reason for consumers, physical store traffic - which was low before the coronavirus outbreak - will continue to slow down," the company said. Consumers are now used to staying at home for weeks and buying a variety of products online. In the future, they won't go to the store unless the retailer gives them a good reason. "

The need to create a more attractive in store experience is undoubtedly urgent. The coronavirus response survey found that nearly a quarter (23%) of consumers said they were still more likely to shop online as stores reopened and the epidemic passed.

McKinsey said retailers needed to redefine the role of stores and provide a unique consumer experience, rather than simply acting as an offline trading place for shopping. This includes offering a "great product discovery experience" and offering exclusive merchandise. Retailers also need to achieve omni-channel online and offline linkage, especially because consumers want to use contactless purchasing options, such as roadside pick-up and online order / in store pick-up (bopis).

In addition, McKinsey recommends that retailers invest in training and equipping physical store employees so that they can reach customers online so that they can continue the in store experience by interacting with consumers after purchase. Finally, the company says that if store employees have access to consumer data generated in store and online, they can customize their interactions with customers accordingly and provide personalized services to consumers in physical stores.

Consumers who don't want to stay may like this attention when they return to the physical store. According to the coronavirus response survey, the top items they plan to buy in physical stores include Casual Shirts (25%) and jeans (24%). Followed by underwear (23%), casual pants (21%) and sportswear (20%).

Steven Winnick, a senior analyst at coresight research, said at a recent webinar that retail sales in June were up 9% year-on-year, possibly due to pent up demand in March and April. However, he said clothing retailers experienced a 24% decline in July and department store sales fell 12%.

Ethan chernofsky, vice president of marketing for consumer analytics platform placer.ai, said in a recent online discussion with Winnick that the retail industry will change a lot in the coming months as outdoor shopping centers try to move indoor stores to outdoor open squares. In this way, as more space will be released in closed shopping centers, this opportunity will be presented to "brands that do not mainly rent outdoor shopping center stores, and they can test different types of formats in indoor environment at lower cost."

"It's a very exciting moment, and ultimately, the diversity of outdoor shopping centers has the potential to create a better retail environment," chernofsky said. 'consumers are basically tired of the state of the marketplace because the stores are the same,' he said. We should now have shopping centers with totally different atmospheres, experiences and retailers to create a more diverse environment. Let consumers go to shopping malls one weekend after another, experience totally different experiences in essence, and let each shopping center meet the expectations of specific audiences. "

Winnick said that in the next six to 12 months, outdoor shopping centers will benefit from reduced passenger flow in closed shopping centers because many consumers are afraid to shop indoors.

Chernovsky also mentioned that shopping malls would survive the outbreak, but it would look different.

"Some of the innovative ideas in the mall include refocusing, providing a wider range of food and entertainment options, and serving people in the mall's affiliated office buildings to make the mall a place for them to eat, exercise and shop," he said. I think this mindset and paradigm shift is very important. "

Chernofsky also said brands that "have relationships with customers" will stand out.

"Puma is launching its own real offline business," chernofsky said expectantly. "More than 200 stores announced a decline in the wholesale business of Nike. See how successful these companies are. We expect that it is only a matter of time before business is stagnant because of the epidemic. I think it is more likely that we will see an environment that has never happened before, with real estate costs falling because many brands are closed and more space is released. Therefore, whether it's experiential shopping malls like neighborhood goods or with fixed store locations, we hope that this trend will continue and accelerate. "

Note: "neighborhood goods" opens experiential shopping malls, integrating shopping space with bars, restaurants and activity venues, supplemented by digital channels, to create "futuristic" offline stores. In the mall, the brand will rotate, for a few months, for a few days only.