The Sunday Age yesterday had a story from Dominic Powell and Simon Johanson about retail and the new normal. It speaks about how retail has changed through Covid and that many changes will stick.
From smaller shops to major chains such as JB Hi-Fi and Coles, the exodus from Australia’s inner cities is just one of the many effects of the coronavirus pandemic shopkeepers fear could persist well beyond the six to 12 months until the world has its vaccine.
As the article notes, there is no doubt that the surge in online will continue.
Broader changes, like the rapid acceleration of online shopping, will be widespread and unstoppable. Retailers are already re-assessing their moribund bricks-and-mortar stores and spending millions on online platforms. “Omnichannel” (along with “resilience”) has been the jargon du jour for merchants through the recent corporate reporting season.
There is also no doubt, in my view, that the migration away from malls to the high street and regional, will continue, too.
Now, more than ever, being online with a beautiful, easily found, website is key. Further, selling what sells faster in-store is also key.
These are not things to put off. Newsagents have no choice but to review what they sell and to re-cast stock range based on this new normal and getting online to find shoppers far away from the business.
It’s a race, a race that is more even right now between large and small than in traditional retail. Small business retailers, like newsagents, acting now will still be relatively early at this. But … it takes creativity, commitment and smarts to be successful.
The article in The Age is a terrific read.
Yes I read a similar story in Saturday’s SMH . NSW is probably a little further down the track with this than our Victorian cousins. I can testify that we and all other retailers in our town approximately 1.5 hours south of Sydney have been experiencing trade more akin to our usual strong Christmas trade ever since the June Queens’ birthday long weekend. Short term holiday rentals are booked out well in advance. Longer term rentals are also sparse. Many City workers have chosen to permanently relocate and real estate prices are going nuts. Locals have learnt to shop early before the crowds arrive. The only downside is that all retailers in our town are experiencing extreme difficulties in retaining and recruiting staff. Nearly every store including ours have job vacancies. I mention this to suggest to all regional Victorian retailers to prepare yourself if you havn’t already.
I’m wondering what Black Friday and Cyber Monday sales will be like this year. Last year was the first time they felt more than a bandwagon marketing exercise. Will it be more subdued due to supply chain issues and not wanting to sell out and be left with empty store problems or will it be even crazier than last year to try and get every sale possible before something else happens.
PJ, if the trend for Christmas 2020 is anything to go by, they will be big. Stores that have gone out early in-store and on socials have, generally, seen excellent results. People are buying early, and buying in good numbers – Christmas cards, decorations gifts and more.
I know of several major retailers that are planning big events.