Retail is witnessing a drastic transformation during the COVID-19 crisis. Value, speed, and convenience are now the new fundamentals in retail
Fremont, CA: The COVID-19 crisis has left a big question mark over the marketers on whether the industry will be able to survive the bitter impacts of this ever-growing pandemic. The post-COVID world may witness a permanent shift in the way people shop for personal goods, groceries, and essentials. Retailers that offer a tech-enabled and multi-channel approach may gain more profit in the post-pandemic world.
Online purchase of groceries has been increased since the pandemic hit. Walmart reported a 21 percent increase in online grocery sales from February 2020 as the sales hit over $900 million in March. According to a new analysis from app intelligence firm App Annie, the Walmart grocery app has topped the charts across all shopping downloads in the U.S. Sense360 reported that 31 percent of US households opted for online grocery pickup or delivery for the first time over the past four weeks.
The New Fundamentals in Grocery Retail
Retail is witnessing a drastic transformation during this period of home-quarantined shopping. Customer purchase drivers are now in favor of value, speed, and convenience, which are the new fundamentals in retail. The largest retailers, such as Walmart, Target, and Cosco, have successfully met these new fundamentals.
Value: Consumers of the post-COVID-19 world may demand a combination of value, speed, and convenience. With the financial rebound scenario in backdrop, Americans have been financially pressured by COVID-19. Hence, the average American consumer cannot afford to spend extra bucks for membership or delivery services. To be a part of the post-pandemic retail landscape, retailers need to absorb additional charges of the new distribution demands.
Speed: In this unusual period of home confinement, delivery speed is of the essence for retailers. Retailers who can meet customer's demand for same-day or next-day delivery will win in the future. Amazon, Walmart, Instacart are all attempting to rapidly hire thousands of employees to meet the expectations of their customers.
Convenience: Convenience refers to the shop anytime and anywhere approach. Many big-name retailers have invested millions of dollars in providing a capable technology that can facilitate online shopping for customers. One can now shop and place an order according to their conveniences at Walmart, Kroger, Target, Amazon, Costco, Publix, and most other retailers. Scanning features and mobile apps have also been updated and improved for retailers. Flexibility is now the key for retailers to survive in the post-COVID world.
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