The Outside View: Consumers Will Shop Again

With malls empty, stores shuttered, and consumers sequestered within the safety of their homes, we can’t help but wonder: How long will retail remain on hold to counter the spread of COVID-19 and what will the sector look like when they finally do reopen? The most difficult question might be: Which retailers will make a comeback and which will not survive? Leveraging 30 years of experience advising retailers and having witnessed many ups and downs — though none as drastic as the COVID-19 situation — I offer the following predictions on the return of consumer demand and the changes we should anticipate. I also suggest actions that retailers can take to mitigate the new normal in the near to mid term. Digital Shift Will See Acceleration While the retail sector experienced a significant sales shift from brick-and-mortar to digital over the past 10-plus years, that relative rate of growth (still 10-plus times above the brick-and-mortar sales growth) had actually been decelerating over the last three years as the digital channel began to mature. Last year, brick-and-mortar sales still represented between 70 and 85 percent of total retail sales, depending on the sector. That reality simply affirms the fact that most people still prefer to

Follow WWD on Twitter or become a fan on Facebook.

from WWDWWD https://ift.tt/2VlOq5b