COVID-19 Impact on Brick & Mortar Categories

Goals

Gain an understanding of how COVID-19 is changing industries and retail categories that have traditionally relied on brick & mortar transactions.

Early Findings

  • Some experts believe that COVID didn't cause the demise of brick-and-mortar shopping, but rather accelerated physical shopping's already declining popularity, as many shoppers were already opting for online options.
  • However, others feel that COVID is merely weeding out weak competitors in the physical retail space, and companies that stay afloat will be able to reposition their brick-and-mortar stores for success given less competition.
  • In some countries that are hard hit by COVID, as many as 50% of physical retailers may be forced to close for good.
  • Physical retailers that had already invested in omnichannel solutions early on will be the best positioned to survive COVID via a diversity of revenue offline and online.
  • Brick-and-mortar retailers are using home delivery options as a way to cope with the crisis.
  • Other companies that were only brick-and-mortar have launched e-commerce options, but will likely have challenges keeping up with brands that have already established on online presence.
  • It's also likely that as lock downs are eased, consumers will go to retail locations with pent-up desire to physically shop, but also have a new appreciation for what they really need given a period of not visiting shops.
  • Consumers are also anticipated to demand more self-checkout and touchless options, as they will be more focused on the cleanliness of shops.

Proposed next steps:

You need to be the project owner to select a next step.