Coronavirus and implications for retailers

Today's business environment is relatively turbulent and uncertain, and it is essential that
business needs to evolve, learn and innovate to survive. Organisations that do not change
are victims of natural selection in the marketplace. Change is paramount to stay in the race
and thrive. We all are facing a challenging, uncertain and unpredictable time due to
coronavirus. This virus is fluid, and anyone can be the victim of this virus and spread to
others quickly. Many countries and their populations have to endure frequent lockdowns
that have a profound social and economic impact. In this time of the pandemic, we have
witnessed a sharp change in consumer buying behaviour to respond to the dynamic nature
of the environment. Our daily habits and routines are changed due to this deadly virus and
various lockdowns measures taken by the respective Governments. We all are taking
protective measures to protect us and others from this invisible enemy that already killed
more than 3 million lives worldwide. It will continue to have a profound impact on all of us.
Since the beginning of this pandemic, we have witnessed a drastic change in consumer
behavioural patterns, including surges in online buying while declining physical & low
contact commerce.

Nowadays, people are more cautious and act responsibly for maintaining Covid-19 rules
and measures set by the country. To avoid human interactions during this lockdown's
consumers, act and do things differently. Companies are fearful about their business
operations and trying to adjust and respond to the changing environment and new
normality. Covid has caused severe problems for both organisations and consumers,
creating an unstable market environment. All familiar & predictable choreographically
patterns of market behaviour are shifting quickly, and consumers are responding to these
unusual uncertain environmental changes. Automatic consumer behaviour in the time of
crisis and uncertainty is not possible. Hence, the retailers must take bold yet innovative
steps to shift consumer behaviour and retail context. Consumer buying patterns and overall
business operations are not any more fixed, planned and stable.

While the situation around Covid-19 is very complex and uncertain, retailers' well-managed
response will significantly impact how they navigate the condition for survival and success.
During the time of destructions, an organisation should become more agile and creative.
Problems create opportunities, and organisation must know the ways to explore these
opportunities. Retailers should revisit their business models and adjust accordingly to create
better customer delights and outperform their less agile competitors. More elegant and
nimble organisations should aspire to build a foundation for digital business operations to
reach their customers. The retailers could take some innovative strategies to overcome the
current situation and post covid-19 period. Some of these are highlighted in this article.

More presence in the digital platform to reach customers will be the new normal for many, if
not for all. The current consumers demand is accelerating for online shopping as and this
will continue in future. In many parts of the world, online shopping has increased
unprecedentedly, ranging from 200-600 per cent during these covid outbreaks. The
companies who failed to adapt their strategies quickly are doomed to fail, and we are
witnessing every day how many companies in Europe and North America are closing and
for other sales are declining. Many non-essential shops in the UK and other parts of Europe
are closed. Many large retailers, including some very famous brands in the UK, are out of
business due to a lack of digital presence. Therefore, digital marketing is essential to stay in
business and ensure organisational agility and competitiveness.
Crisis management should be another priority for the retailers to focus on. Retailers need to
revisit their business plans and adjust to reassure various stakeholders, in particular
employees and customers' safety & security, managing the accelerating demand of
customers, supply chain constraints, and other critical areas of priorities in this pandemic
time. Agile crisis management & a flexible business plan is essential to respond to this
current situation. Innovative thinking retailers with a growth mindset will make the best out
of this crisis and will be able to deal with the decline in confidence, take tough decisions and
become more agile.

Focus on sustainable customer retention strategies. It is of paramount importance for the

retailers to create and adopt a holistic customer retention strategic model during this and
post covid environment. These simple business strategies will help superstore retailers to
enter a new development era and regain customer trust. Offering customers more delicate
goods and upgraded service levels will help achieve higher levels of customer satisfaction &
delight. In addition, the supermarket must also communicate constantly with its customers.
In this age of information technology, the supermarket must blend direct communication
tools such as telephones, e-mails, direct mails, social media platforms to communicate with
customers, inform them about developments in the supermarket, and provide critical
information on covid-19. Following the customer's first rule, a professional and friendly
approach will keep emerging supermarkets ahead of the game. Accommodating customers
correctly, whether by phone, e-mail, or person, is key to the reputation and brand image of
the business.

Another variable that appeared significant is social connections. In Bangladeshi society,

people tend to relate to each other everywhere via the extended family. This implies that
social relations are sometimes intertwined with business relationships. Thus, customer
relationship managers, who identify the social activities of their customers such as funerals,
birthdays, weddings, and important religious festivals, will win their trust and help
consolidate satisfaction and loyalty. Retailers could create a platform through which they
can support customers at the social and family level. This could bring organisations closer to
the family and help generate more businesses for them. Therefore, building social
connection and showing great respect would be the priority for the retailers. The
supermarket must encourage the employees to build social bonds with its customers
creatively. Going the "extra mile" through creative participation in customers' social events
is a sure way of creating bonds, gaining trust, and enhancing customer satisfaction with the
supermarket services. Retailers could develop a deeper consumer relationship by being a
trusted and credible source of information. A customer-centric approach is imperative in
this uncertain and fearful time. Retailers need to introduce a sound hygiene system,
procedures for social distancing and other relevant precautions to ensure customer
safety and protection.

This is the time for the organisations to show a high level of empathy and recognise social
norms. This can be done using digital platforms, especially social media, to post messages to
support the community or show kindness. We also need to keep up with each other's spirits,
especially as many people will feel lonely and isolated at this time. Incredibly, the difference
a few kindly and reassuring words can make. Let us not forget the old proverb about
necessity being the mother of invention – retailers need to think creatively as never before.
This will include endeavouring to become more dynamic, responsive, agile and
sympathetic. We know it is a callous time, and society will lose many of its citizens because
of this virus, but an ultimate victory is not in doubt. The organisations will again thrive and
prosper. The gainers will be those who understand the customer needs and context of the
business. The virtual alternative will be the new normal for many.
 Dr P. R. Datta
Executive Chair, Centre for Business & Economic Research, UK