HOW COVID-19 IS CHANGING RETAIL

This morning I heard David Kessler, author and founder of Grief.com, on Fox News talking about how our world is changing. He stated that we have to expect new norms in all phases of our lives and that the world will never be the same post-COVID-19. His reference was to pre and post-911 airline travel and how today, we have adapted to a new “normal” with ever-increasing levels of security and screening as the accepted standard. In a similar fashion, we can expect consumer buying behavior to be radically impacted by the current pandemic and the heightened feeling of vulnerability and exposure we are all experiencing.

One of the most significant changes to our society, and in turn retail, is the concern about who has touched, tried on or handled the products we plan to purchase. Will there be a time when we will be able to go into a clothing store and not wonder who tried on that shirt or blouse before us? Will shoppers ever be comfortable going to a cosmetics counter and trying makeup or creams? Are we all wondering who packed that Amazon order and if they were wearing protective gear? With the increase in reliance on Amazon Fresh, InstaCart and a multitude of food and grocery delivery services, the question of who picked your produce and who touched your groceries is a concern that I have heard echoed constantly over the past few weeks.

It seems that the new age of retail will be intrinsically woven with the tracking and pedigree of consumer goods. The brands and retailers that address these concerns by sharing systems, safeguards and procedures will gain immeasurable brand equity and customer support. Wouldn’t we all want to buy from the brand or retailer that shows that the merchandise and orders are packed by associates using the appropriate personal protective measures, i.e. gloves and masks? Should retailers of apparel leave most of the inventory in sealed polybags so that the customer knows that the items were never tried on previously? Have we entered the true age of showrooming where the consumer is more comfortable making their selection and having the product delivered to their door as opposed to pulled off a retail selling floor or shelf?

Reverse logistics is another major factor. What happens to products returned to online and omni-channel retailers? In the past, we assumed that they were only put back into saleable inventory under optimal conditions. Today, we don’t want to assume, we need to know. Returned products have been in people’s homes and touched by unknown amount of people. Will the liberal policies of Amazon and others change as a result of this new level of awareness?