Since the beginning of the pandemic, every single state in the US has reported an increase in the number of COVID-19 cases. In November 2020, the United States reached another peak in virus outbreak. As attempts to control the spread of the COVID-19 virus were enforced, it led to states closing down retail shops, restaurants, bars and schools. There were limitations for public gatherings that were placed and companies encouraged employees to work from their homes.
All in all, the retail-heavy industry faced a substantial shift in consumer behavior. There was an overall increase in necessity spending, such as food and medicine. However, there was a substantial reduction on more luxury purchases such as accessories, entertainment and apparel, among others.
Future of Retailers
Retail brands continue to face very daunting and multitudinous short-term challenges. These mostly revolve around concerns for consumer demand, health and safety, labor force, supply chain and marketing. However, mere navigation around these issues will not ensure a brighter future, let alone any such future, if at all.
This is mostly due to the fact that the world post the pandemic would be a different world altogether. For those of us who make it through, the pandemic would have left a major change in perception. The best way to look forward would be to anticipate these changes early and make preparations to benefit the most out of them. Anticipation and working to transform your business would be the best bet for the future.
Consumer Trend During Pandemic
There is still an ominous uncertainty surrounding the pandemic that continues to impact consumer behavior. The shift to e-commerce is not the ultimate solution as many claim it to be.
In a recent survey conducted by reliable sources, 25% of American consumer fear their ability to spend upon holiday gifts. About 30% of consumers feel that they will be forced to spend lesser this year owing to the sorry state of the economy. There is a rise of around 37% among the survey people who believe the economy is in shambles.
Brand Strategies During Pandemic
There have been innovations in order by many brands. The extended layaway has led to a spurt in sales. The option of buying now and paying later has led to a growth in sales for a few brands. Seeing this, many brands have started the “Afterpay” service, which is one way of tackling the repercussions of the pandemic.
E-Commerce Boost During Pandemic
The COVID-19 induced pandemic is expected to lead the e-commerce industry to close in on sales worth $40 billion in the holiday season. The Pre-pandemic market never expected to hit such levels of digital shopping for the next few years at least.
For the very first time in US history, there is almost a quarter of sales during the holiday season that will happen over online shopping.
In terms of statistics, the consumers in the US are expected to be spending 43.3% more on online shopping during the holiday period. This would make whopping sales of worth $19 Billion approximately. This would mean an overall increase of around 26% in online sales compared to just 19% last year.
But as the e-commerce market booms, the traditional brick and mortar businesses are expected to witness declines around 3-4% in a year-to-year comparison.
Online Trading During the Pandemic
The digital boom has also led to a rise in online trading among consumers. More and more Americans are looking for online trading options as a measure to secure and grow their wealth.