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Voice of the Industry: Retailers React to Coronavirus

Voice of the Industry: Retailers React to Coronavirus

By: Amanda Bourlier

Retailers around the world have seen their operations disrupted in 2020 initially by the pandemic and increasingly by recession in many markets. Euromonitor International’s Retailing Voice of the Industry, fielded in July 2020, identifies how retailers are responding to these events and how they are thinking about future investments during this unusual time.

Economic conditions will make consumers more cautious

Shopper behaviour is shifting not only as consumers prioritise safety in their shopping, but as a result of uncertain economic outlooks in many markets. Many major economies are expected to experience a recession in 2020. Concerns about employment prospects will drive consumers to be more cautious in their spending.

How do you expect shopper behaviour in your market will be affected by an economic recession?

Retailers are already thinking about how to adapt their strategies to continue to draw shoppers even as consumers become more reluctant to spend. Two of the most frequently cited actions respondents expect to see their companies take to reach consumers during the recession have to do with better connecting with individual shoppers, via more personalised marketing (54%) and adding perks for loyalty program members (45%).

Retailers broadly expect to see consumers shift more of their spending towards value-oriented channels (52%). This is precisely what happened during the Global Financial Crisis in 2008 and subsequent recovery: While store-based retail sales in the US grew 7% between 2008 and 2012 according to Euromonitor, sales at discounters like Aldi increased by 28% and at various stores such as Dollar Tree by 29%. Discounters and variety stores are likely to see sales growth above the market average in the near-term as consumers seek to stretch their spending further as the economic effects of the pandemic become more widely felt.

Retail stores will look different after the pandemic

Since January, retailers worldwide.........................................................................................................

 

The article is property of Euromonitor International, a market research provider, and can be read in full at: https://blog.euromonitor.com/voice-of-the-industry-retailers-react-to-coronavirus/

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