Existential Moment for The high-Street, Traditional Shopper and Retailer

Reading time : 6 minutes

According  to a survey about the impact of coronavirus  (covid19)  on Indians  between March  and May 2020, retail stores consistently seemed more reliable during the survey period for consumer  to able to  buy  essential  goods.

The coronavirus  pandemic  represent  an “ existential threat”  to the  entire  retail sector  and there will  be  “fundamental changes” to longer – term business model. At the best times, many retailers were struggling to gain any footing with customer but now it is even more difficult to survive

SWISS CONSUMER  want to go shopping  again ,but  uncertainty remains. Many turned to online shopping because of COVID 19. The time it seems unlikely that high street shops face an existential threat. If Shopping  in future is no longer  an easy , pleasant and safe experience for consumer. When lockdowns will unwind is still unclear, but it seems certain the swiss   retail  sector faces a painful loss revenue.

The COVID-19  Outbreak has completely  changed   the face of retail  in India  and almost every country  worldwide. Until early to mid-may, most goods, such as furniture, clothes and books, were  either completely unavailable or available only online.IN survey  shows that the COVID -19 crisis is likely to trigger a decline in “traditional shoppers”- that  is, shoppers in brick –and-mortar stores – across all categories of goods. Almost two-third of respondent report that before the pandemic.

FOR EXAMPLE:  They Preferred to purchase  furniture and furnishing in shops, but only 60% say they will continue to do so after the crisis, a decrease of five percentage points .

Many Consumers delaying purchases:

 The survey also shows that since the  COVID -19 outbreak, SWISS consumers  have purchased mainly groceries, with other consumer goods less of priority. some consumer will only purchase  certain item again once the shops have responded.

The shopping experience versus health protection:

Traditionally, many  people enjoy the  atmosphere  and shopping experience of the high street, strolling along, window shopping, tempted by the sheer range of goods and distraction in shopping malls. As mention above, initial surveys and experiences from India and another country suggest that customers are now very purposefully buying what  they  bought in the past but in larger quantities.

If Queueing, physical distancing and the need to wear a face mask  in public spoil the shopping  experience- and once online retailer get delivery time back to normal then traditional shoppers may well  switch to online  shopping in large number. Retailers are therefore intending to take advantage  of the almost two months in which  shop  have been closed not only  to get their shop in order, but also to creatively introduce new safety  measures. both retailers and brands  need to do more to bring  the online and offline world together  and find new ways to meet evolving  customer needs fast.

Impact of COVID-19 on Indian Retailers:

Indian Retail Industry has more than 15 million retailers, both small and big, traditional and modern trade . Retail employs 40-50 million Indians directly of which Modern trade employs more than 6 million Indians equaling to almost 12% of the total Retail consumption of the country.

 Following were the key highlights of the survey results:

(1) Impact of non-food retailers –Most than 95% of non –food retailers have their shops closed in the lockdown and are looking at practically no revenues till the lockdown is in place. In the next 6 months, NON-FOOD RETAILERS EXPECT TO EARN 40% as compared to last year’s revenues.

(2)Impact on food retailers- most  of food retailers also sell non -essential goods in the same and /or different stores. The non –food business in the stores has come to a standstill in the lockdown leading to revenue loss.

(3) Overall business Outlook – 70% of retailers  expect business recovery  to happen in more than 6 months, 20% expect it to take more than a year 10% of Medium and Large Retailers expect  to earn any profits  till Aug’ 20, 26% of Small retailers expect to earn profits in the same time period.

(4) Manpower  rationalization – Small Retailers are expecting  to lay-off 30% of their manpower going  forward, this number falls to 12% for Medium Retailers and 5% for Large  Retailers.

All this could change  Rapidly , However . Our survey shows 19% of swiss national  expect to lose their job due to the COVID-19 crisis.

Author: Anushka Kumari

Editor: Kanishka VaishSenior Editor, LexLife India.


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