COVID-19 has turbo-charged the transformation of retail to digital. The aggressive brick-and-mortar conversion to digital in all categories has simply turned it into a V-curve. Your 2020 strategy will have to instantly implement the following:
- If you have stand-alone outlets, the time is over for the under-performing or loss-making ones to turn a profit. Footfalls will be in freefall. If they have been given more than 6 months, and they still aren’t profitable, the time has come to potentially shut them, Leases on all outlets will need to be renegotiated. Staff will have to be reduced. Open hours may need to be longer.
- If you have not played the MBO game yet, you may be forced to. Let somebody take the real-estate risk with a lower cost of fit-out for you.
- Your on-line channel will have to become one of your primary channels. The model will need to be transformed end-to-end. Online product range, discounted pricing and a specialized supply chain. Your website will not be enough. You will need to be a best-seller on the main marketplaces.
- Your logistics will need to be e-commerce specialized. Warehousing, Distribution Centers with a high level of automation.
- Love your customer. Only your loyal customers will return. A best-in-class loyalty program including the new tricks of gamification, analytics, and great partners will be needed.
- If you are a mall operator, your business model will have to change. Your food courts may not do the trick any more due to challenges with social distancing.
Let us help you transform your retail business, while there is still time.