FEATURE
approaches from the states and territories. There has been little consistency around what triggers a lockdown or a reopening, or how we define ‘essential retail’, and we’re seeing this again with the different state roadmaps and requirements for vaccinations. For retailers with a national footprint, it’s incredibly challenging to navigate the different state-based requirements as staff and operations are impacted in different ways. That’s why we are continuing to talk to State, Federal and Territory governments about the importance of an aligned approach to any remaining Covid protocols as we move into recovery. For Christmas this year, shopping early has never been more important. Supply chains are under incredible pressure and there’s a myriad of issues at play here that are creating the perfect storm for retailers and consumers. Online sales have surged in recent months and are likely to remain elevated over the Christmas period, despite the return of physical shopping options. On top of the record amount of online purchases, some distribution centres and warehouses have been impacted by reduced staffing levels due to Covid cases, we’ve had industrial disputes from delivery drivers and port workers, while state border controls and limited domestic flights are also impacting the movement of goods. At a global level, retailers are reporting that the capping of incoming flights has put significant pressure on shipping, and we are seeing container costs escalating up to four times their usual rate. With all these issues at play, planning ahead and shopping early is key to avoid disappointment. Looking ahead to 2022 and beyond, we need to be mindful that we’ll be living with Covid for some time. Vaccinations are
our immediate end game, but things like health, safety and hygiene will still be important factors and part of the day to day running of business. The recovery is likely to be uneven as well, and not all sectors of the economy will bounce back as quick as others. CBD retailers, and small businesses in particular, will continue to be impacted. Whilst we are likely to see a gradual ramp up with the return of international students and tourists, spending in CBD locations could still be subdued compared to pre-pandemic levels and not all businesses will be thriving at the levels they once were. The ‘working from home’ trend is continuing so there won’t be the usual numbers of city office workers out and about, shopping on their lunch breaks or grabbing dinner and drinks in the CBD after work. There’s no doubt the pandemic has accelerated a number of retail trends and has highlighted just how important it is for retailers to have an omnichannel strategy so they can cater for customers whichever way they interact with their business – through a mobile phone, computer or in-store. Consumers are now expecting retailers to ‘meet them where they are’ – and the businesses that have made the investments in digital to meet the changing needs of customers are on the right path to success. Pleasingly, all the indications are that the worst of the pandemic is behind us - states are reopening, borders are coming down and we’re now learning to live with the virus. Retailers are upbeat and are looking to capitalise on a post-Covid spending boom into 2022 and beyond. www.retail.org.au
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