While many businesses around the world reeled under the COVID-induced economic challenges, nowhere was this more evident than in the retail sector. As governments struggled to curb infection rates in their respective countries and imposed lockdowns, retail businesses found themselves in the middle of a very uncertain situation – forcing many to wind up their operations altogether.
According to a BBC report, 2020 turned out to be the worst year for retailers in terms of sales. Non-food retail sales saw an estimated drop of 5%.
However, there are still ways in which retail businesses can rebound from the damages they suffered in 2020. Here are some of them:
Offer Virtual Experiences
As more and more people are forced to stay back home amid worldwide lockdowns, retail businesses can put technological advances in augmented reality (AR) and virtual reality (VR) to their advantage.
These technologies let customers feel and experience their products from the comfort of their homes, without even having to walk to a store. Many retailers have already embraced the phenomenon.
Goldman Sachs, a leading global financial management firm, estimates that by 2025, the market share of VR and AR in retail would reach $1.6 billion.
Explore New Sale Channels
Many consumers had shifted online well before the pandemic hit, and the imposition of lockdowns only exacerbated the transition. Consumers now heavily depend on online platforms to shop for all essential and non-essential items. Retailers need to not only expand their digital presence but also work on building the required digital infrastructure.
Apart from websites and social media channels, retailers should also build mobile applications to engage customers. Having a presence on multiple channels will ensure that your customers remain engaged with your brand.
Understand the Changing Consumer Behavior
The COVID-19 pandemic has also significantly impacted and changed consumption patterns. Retailers need to be proactive in responding to their customers’ evolving demands.
Retailers should adopt artificial intelligence tools to maintain customer data, enhance customization, and make better pricing decisions. This would also help business owners make better procurement decisions and cut down on unnecessary inventories. Targeted buying on your part will also help reduce financial losses.
If you are a retail business struggling to stay afloat during these uncertain times, find out more business-related tips by Mannal Haddad, who has over 25 years of experience in sales and marketing and business consulting. He also gives tips on how to build great teams and manage social media marketing in FMCG industry.
