FROM THE EDITOR’S DESK
New Expectations The COVID-19 pandemic has upended retail, with the industry evolving in ways that are still being digested. But as our cover story, “The New Playbook for Retail,” makes clear, the pandemic is not re-writing the rules of retail as much as it is accelerating or fasttracking some key fundamental trends that were already starting to transform the industry. Chief among these is the need for robust and flexible digital operations. While certainly not new, the crisis has made such capabilities absolutely crucial to business success, at least for most retailers. But another big change is unique to the pandemic and it’s how the crisis has upended the in-store customer experience. Forget about fun, in-store demos and interactivity — at least for the time being. Customers are now prioritizing things that no one imagined prepandemic, such as putting limits on how many shoppers could be in a store at any one time, for example, or requiring customers and employees to wear facial coverings. Overnight it seems customers have come to expect plexiglass shields and distancing signs. “The ability to deliver on health and safety efforts is now the most important aspect of the customer experience, and it will be for some time,” said Nick Mercurio, executive VP and service line head of U.S. channel performance at global research firm Ipsos. Indeed, numerous surveys indicate that retailers will pay a price for not paying attention to in-store health and safety measures related to COVID-19. In an Ipsos survey, 62% of shoppers said they would stop shopping at a retailer that is not taking health and safety seriously. As to what specific measures consum-
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ers want to see, it’s not that complicated. Improved cleaning practices and the enforcement of physical distancing heads the list, according to a report by L.E.K. Consulting. “Based on how Americans are feeling, the onus is really on businesses to make people comfortable to return to their establishments in the post-COVID-19 reality,” said Manny Picciola, managing director at the firm. Some retailers are going the distance, and even beyond in some cases (see our story on Bob’s Discount Furniture, pg. 34). But others are falling short. In the Ipsos study, 58% of the stores visited were not observed to be managing the number of entering customers and 64% had no staff actively cleaning interior high-traffic areas, such as carts/ baskets, counters, credit card readers, and doors. Also, 31% of the stores visited did not have plexiglass dividers at checkout. Joe Nevin, senior VP, development at Big Red Rooster (a JLL company), believes that some of today’s changes will be temporary, but that the need for catering to customers’ sense of safety and comfort will likely remain. “Retailers must demonstrate and share their core values to empower both their shoppers and employees while appropriately addressing all touchpoints in the customer journey to ensure long-term future success,” he said. The plight of shopping malls has been much in the news of late. But the news is certainly not all gloom and doom. Savvy operators are reopening their doors with new initiatives designed to encourage shoppers to return while also making them feel safe. Ten of those centers are profiled in “Top 10 Retail Center COMEBACK Experiences,” which starts on page 18 of this issue. As these centers illustrate, a little imagination and ingenuity can go a long way.
Marianne Wilson mwilson@chainstoreage.com
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