COVID-19 Impact: Retail Industry

COVID-19 Impact: Retail Industry COVID-19’s Impact on the Retail Industry and How Brands Can Continue to Engage With Their Customers In recent weeks, all non-essential businesses were forced to close their brick-and-mortar locations due to stayat-home orders from federal and state officials. Not surprisingly, this caused a quick decline in revenue in some industries, especially industries and businesses without an ecommerce presence.

Consumers abruptly shifted from discretionary purchasing to buying household essentials and groceries first – meaning click and collect/delivery orders at grocery stores surged overnight. As consumers continue to expand their online shopping habits, many retailers are scrambling to scale up their ecommerce operations.

"Right now, it’s still hard to say how big of an impact this will have on US retail sales," said eMarketer senior forecasting analyst Cindy Liu. "With millions of people forced to stay home and many retailers temporarily closing shops, it’s safe to assume that sales will likely take a hit starting in March and last however long these social distancing measures remain in place.”

Where to Focus Today for the Greatest Impact Later Given the current climate, many advertisers have pulled back their ad spend. “It is understandable, especially in an acute but temporary crisis. But in the current situation, strategic invisibility may be the wrong choice,” according to a recent AdExchanger article. Although it’s unclear when behavioral shifts will stabilize and normal spending will resume, what is certain is consumers are paying close attention to how brands react to the crisis.

A recent GFK study reported three out of four consumers said the way organizations react during COVID-19 will inevitably affect future purchase decisions. “This is the event that five years from now people are going to be looking back on as setting the culture and tone and heart of an organization, recognizing that the leaders of the organization need to be doing the things that you know everyone is going to be proud of having done five years from now,” shared retired Home Depot Chairman and CEO Frank Blake.

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At Goodway Group, we believe there are three key areas where retail marketers should be focused right now: •

Building Customer Loyalty: Frequent communication with customers and employees alike is imperative. Increase your long-term customer loyalty with timely communication, home delivery options, approachable customer support channels, and responsive digital media. Necessity is the mother of invention, so develop a communication plan to engage more conscious consumers.

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Shifting Focus to Ecommerce: COVID-19’s impact on the retail sector has been polarizing; some brands are benefiting significantly while others are completely shut down. The brands who will gain relevance are the ones who can accelerate their ecommerce capabilities. COVID-19 only expedited the need to have an omnichannel retail approach. So, those able to make shifts in buying options for their customers or retool their production will be the ones to capitalize.

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Collecting Customer Data: It is the ideal time to be focused on your first-party data – both your data collection and your strategy on putting it to use. Modeling audiences and gaining insight into your customers’ purchase patters will help guide your data strategy through the slow transition to normal spending once the virus starts to decline.

Goodway Group is the digital partner advertisers trust to drive campaign performance and media efficiency. Proud to be completely independently owned and operated, Goodway provides trustworthy expertise that meets its clients’ needs — and no one else’s. Using predictive intelligence, Goodway helps advertisers get the most value out of every impression across all paid digital media. Through the combination of employing the smartest technology and the most experienced people in the industry, Goodway delivers authentic results.

© 2020 Goodway Group. All rights reserved.

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