The current business environment is embedded with a new set of challenges due to the COVID-19 pandemic.

All the businesses have undergone many adjustments/structural changes to cope with the pandemic. Many Brick
& Mortar businesses are at the edge of extinction, while at the same time, many new businesses/existing are
indicating growth in their books.

Keeping in view the above case, discuss the issue logically, and answer the following questions.

1. Do you think that COVID-19 is an opportunity/threat to the businesses?

2. Support your answer with suitable examples in either case, if any.

COVID-19 is a threat to the businesses but an opportunity as well. It is unambiguous that the coronavirus is
intensifying and accelerating disruption that had already been long underway in the retail sector.
1. Threat to Retail / Brick & Mortar Businesses. The spread of COVID-19 has left both non and essential
retail businesses in dismay. The past months under COVID 19 have been unthinkable for retailers around
the world. Aside from how our personal lives have changed, businesses are coping with furloughs, supply
chain challenges, the shutdown of retail stores, and learning to navigate a retail world in a time of social
distancing. Examples are: -
a. Jewelry company “Kendra Scott” in USA closed all 108 of its retail locations in mid-March.
b. Bed Bath & Beyond closed all of its retail locations at the start of the crisis.
2. An Opportunity for Businesses. Evolving a business model in near real-time seems to be essential
for some retailers to survive. 
a. Bed Bath & Beyond after seeing ecommerce sales grow 85 percent in April, they were rehiring
some employees and reopening 25 percent of their stores as regional fulfillment centers.
b. “Kendra Scott” understood the requirement, and the company transformed each of those 108
locations into “mini-fulfillment centers” and launched an ambitious ship-from-store program.
c. It’s not only online or only brick-and-mortar that is the future of retail. It’s an intersection of the two
and innovation on the part of the retailers to evolve with shifting customer preferences. The online
and offline shopping experience will continue to blend together on the other side of the coronavirus.
d. The rumor of retail’s death may be greatly exaggerated. It’s inarguable that the coronavirus presents
an existential threat to offline retail and brick-and-mortar stores in particular, but there will be
survivors. 
e. New approaches to fulfilling customer needs, new technologies for your customers to engage with
your brand, and new commercial models to convert and retain customers may help meet the
demands of the post-coronavirus shopper.
f. Implementing features that take advantage of both an online and physical presence, like a “buy
online, pick up in-store” option, could also help your business leverage both of its storefronts.

g. In the future, all retailers will probably want a combination of e-commerce and brick-and-mortar
locations. Even online giants like Amazon are starting to move in this direction.
h. Two tactics are clear across any industry vertical: retailers need to be online and they must leverage
their digital presence in store.
i. The retail industry has seen a massive shift in just a few weeks due to COVID-19. From consumer
behavior and spending patterns to navigating a new normal, retailers must look ahead and online to
find success.
j. Innovative supply chain solutions, creative and compelling marketing strategies, and a continuously
evolving customer experience will light the path for retailers as they navigate a world after the
pandemic.