EDITOR’S LETTER
Retail Innovation Due to the Pandemic T he retail industry is undergoing one of the most significant transitions in recent history thanks to the coronavirus pandemic. Consumer buying patterns have changed rapidly in the face of stay-at-home orders and fear of the spread of the virus upon the gradual reopening of the economy. It is often true that innovation is spurred by conflict, which has been in ample supply throughout 2020. Retailers who have innovated to meet customers’ needs have seen growth and success this year at the same time when retailers who have not innovated have struggled.
because they are innovating with multichannel to provide a convenient shopping experience for consumers. A very significant proportion of sales that are attributed to the online channel are, in fact, multichannel sales that rely on both stores and online for success. On average, one third of online non-food purchases, where a customer actually transacts online, are in fact reliant on physical stores for product selection, pick up, or return.” Apparently, this shift to multichannel shopping is not a short-term phenomenon. A majority of US shoppers (68 percent) said they were going to make use of curbside or in-store pickup in the future. Retail executives are recognizing this shopping shift with nearly 90 percent reporting that they are planning to invest more capital in expanding their multichannel capability to enhance how their online and physical store operations can work more seamlessly in the future. One of the more interesting quotes from Saunders, I thought, was the following: “The idea that there is a battle between online and physical retail is outdated. There is only one retail battlefield, and the fight is between all the players on it, and those that have strong multichannel options with both an established store network and online presence now have the advantage.” This shopping shift will impact the entire retail enterprise, including loss prevention, asset protection, and supply chain, which comprise a majority of our audience. To read more about this topic and to download the report, see the article “Retailers with Multichannel Sales Options Have Advantage during Pandemic” on our digital channel, LossPreventionMedia.com.
“The idea that there is a battle between online and physical retail is outdated. There is only one retail battlefield, and the fight is between all the players on it, and those that have strong multichannel options with both an established store network and online presence now have the advantage.” A recent research report from GlobalData titled Multichannel Retail and COVID-19 has detailed these changes. The report highlighted how shopping habits in the US and Europe dramatically shifted to adoption of buy-online, pick-up-in-store services due to the pandemic. Retailers who offered a combination of online ordering and curbside or in-store pick up have flourished. The report specifically noted Best Buy, Target, DICK’s Sporting Goods, and Walmart as examples of traditional retailers who are growing faster than online-focused retailers like Amazon. GlobalData’s lead retail analyst Neil Saunders said, “Despite claims that the growth of online shopping is leading to a ‘retail apocalypse,’ the reality is that many retailers across all sectors are thriving
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SEPTEMBER–OCTOBER 2020
Jack Trlica Managing Editor
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LOSSPREVENTIONMEDIA.COM
