How are consumers acting worldwide? Which industries are the most affected? We have asked professionals in the sector how the virus is affecting retail and the vast majority speak of a significant decrease in traffic in physical stores. The panic of physical contact is causing “some fear and paralysis in the consumer” that, according to experts, chooses to stay at home and make purchases over the Internet. For a good part of the retail professionals who have participated in this survey, disinformation is an issue that concerns them and asks the population to remain calm and to be well informed of the situation through official sources.
Quarantined Retail: Will it Survive Coronavirus?
Fran Velasco tells us that he would ask the question differently and that he believes that it is the misinformation about Coronavirus that is affecting Retail. “I think you are seeing some events: they are canceled, you are asked not to go to places with many people… I think the online will grow because of the panic of physical contact!”, Says Fran.
Mirka Plasencia also talks about misinformation ande she believes that “every industry is affected to a greater or lesser extent, including in the execution of events and congresses. We must be well informed on the issue of reliable sources: health institutions and policies that take the Measures”.
And precisely because of this fear of the physical that Fran Velasco speaks about, David Terrón believes that, “in the short term, there will be a further development of the cocooning + ecommece + drives + click & collect trend. In the medium-long term it is for see…”
In this line, Raul G. Serapio indicates that “everything that decreases traffic in stores regardless of origin, affects retail.” “You just have to observe the Chinese customers at ECI Castellana (Madrid), they shine for their absence.”
This lack of traffic at the point of sale is also worrying Salvador Cayuela, as well as everything derived from the supply chain. But, for Salva, this situation can also be “an opportunity to look for options for both finished products and closer materials for crisis situations like these.”
Marcos Mosteiro believes that currently, consumers in Spain are acting with “some caution” but continue to consume normally. However, Mosteiro believes that “in the short term, our country’s retail trade will suffer between 1% and 4% in its sales.” Something that could benefit, according to Marcos, online and that will not affect SMEs and specialty stores, which “will partly avoid this crisis.”
In fact, talking about opportunities and avoiding this crisis, Sofía Mateo tells us that she runs a grocery store and that “several people who normally came to buy a few things like bread, milk, etc. These days they have come to make bigger purchases because they say they don’t want to concentrate on large stores. So, as Sofia points out, “small businesses, if they know how to turn around, have an opportunity that they can’t let go.”
Tania Pareja tells us about stock-outs, manufacturing stops in home cities with the subsequent postponement of deliveries, price speculation on related products of need, as well as fear or paralysis, I’m staying home! Does the online upload?.
In turn, Pilar Zorrilla also tells us about the drop in traffic in stores. She also speculates on the necessities, for which she says “there can be a strong demand in the face of total disinterest for those products that are not necessities.”
But for Alberto Cordoba “not everything is the fault of the coronavirus. The decrease in store traffic is a sign of a change in habits, which is here to stay.” Alberto also shares the reasons for visiting that generate more traffic.
For its part, Bolsalea thinks that “the small shops will continue at the foot of the canyon”. “Perhaps the great retailers will apply stricter measures in the face of fear of receiving criticism if they do not apply it,” they explain from Bolsalea. And Germans Prados also remembers the self-employed, who says he is in solidarity with the victims.
Rachel Williamson says that what she is seeing and hearing is two fold. “1. There is an issue with the slowdown of production in China and this has retailers worried about getting receipts for their spring break business. Whether for your online or offline stores, the delay impacts all. This is directly impacted by the Coronavirus in China. 2. The media loves to hype things up and exaggerate what’s really happening. This spreads fear and is causing down traffic everywhere. The Arnold Classic was canceled here in Columbus Oh as to limit the risk of bringing the virus here”. Rachel tells us that she is seeing stores “with antibacterial products at the cashwrap to help stop the spread of germs. Just like swine flu in 2008, this will change some behavior but will likely not have a lasting impact”. For Rachel, “retailers should be aware of the concern and provide even better service than ever. Brick and mortar stores can offer to deliver product or ship it to the customer. Get creative. Respond to this reality head on. The worst thing retailers can do is succumb to it”.
