US Retail Consumer Behavior Changes

• According to McKinsey's report "Adapting To The Next Normal In Retail: The Customer Experience Imperative", COVID-19 has caused consumers to switch to digital and omnichannel retail.
• The availability of e-commerce as well as hygiene concerns caused 17% of US retail consumers to shift from their primary stores.
• US retail consumers are also trying innovative omnichannel models such as buying online and picking up in store (BOPIS).
• BOPIS grew 28% year-over-year in February 2020 compared to 18% in January.
• Grocery delivery also increased by 57%.
•  22% of US consumers are using delivery services more since the pandemic began.
• US retail consumers showed 'high intention' to continue using innovative models after the pandemic.
•  56% say they intend to use BOPIS after COVID-19.
•  45% say they intend to use grocery delivery after COVID-19.

US Retailers' Response and Innovations

• According to a Digital Commerce 360 survey of 118 retailers in May 2020 including 57 top US marketplaces, 36% of retailers are adjusting their marketplace strategy due to COVID-19.
•  25% of retailers said they tried to provide their customers with a trusted partner during the pandemic.
•  25% used data analytics to optimize their buyers' behavior.
•  23% changed marketing and advertising strategies to adapt to shifting consumer behavior.
•  13% shifted their business models to accommodate customers' concerns during the crisis.
•  19% of retailers said their inventory turnover was hindered while 12% said their supply chain was compromised.

Case Study Brief: Panera

•  Missouri-based Panera is one of the retailers who moved swiftly to meet changing consumer expectations at the start of the COVID-19 pandemic.
• In two weeks, Panera developed and launched a grocery-delivery service that offered a unified online cart.
• The company used its supply network to expand its offerings aside from its core business of bread and coffee.
• Consumers can order entrées and add groceries such as fresh fruits, vegatables, milk and others using the Panera Grocery platform.
• Panera's offerings come a a time when supermarkets are experiencing shortages in staple grocery items.
• The company also shifted to curbside ordering and pickup as its cafés shut down due to lockdown measures.
• Panera CEO Niren Chaudhary said, "It's a win for our associates because we will be able to keep our cafes open longer, and it's great from a business standpoint because it should be incremental profit and revenue for us at a time when we desperately need it."

Case Study Brief: Kendra Scott

•  Texas-based jewelry retailer Kendra Scott also responded to its consumers' behavior shift by launching an AR-powered Virtual Try-On platform.
• The platform was launched in April 2020 to allow shoppers to remotely test and preview jewelry items.
• The virtual platform provides dynamic lighting and settings for trying on earrings, necklaces, bracelets, rings and other items.
• This innovation brings the retail setting to consumers' homes using only their smartphones.
•  WWD reports that Kendra Scott has surpassed its pre-crisis sales projections thanks to its customer experience innovations.
•  RetailDive reports that Kendra Scott joins other retailers such as Wayfair and Ikea in using augmented reality (AR) to improve customer experience during the COVID-19 pandemic.