Retail is one of the most greatly affected industries during the pandemic. For one, consumers learned to prioritise the necessary items they need to purchase. The decline in retail during COVID boils down to two factors: 1) the global recession made everyone limit their finances and solely spend their budget on things that are needed, and 2) retail establishments weren’t considered essential during the lockdown, hence the majority was shut down. This phase was the separation between food and non-food industries, and the latter’s struggle to survive.
As we transition towards the new normal, you may find yourself wondering if there’s room for retail businesses to grow? Will the retail sector pick up its pace in the post-pandemic world? Here are some key factors to consider in buying a retail business:
Invest on e-Shopping
Even before the pandemic, there has always been fierce competition between in-store retail and online shopping such as Amazon. This was only amplified during the pandemic as everyone only had the option to buy online if they did decide to spend a dime on non-essentials. As we begin to enter the new normal phase of the post-pandemic, one of the drivers for retail shops to thrive is to invest in e-commerce. Make no mistake: online shopping is the future of retail.
While there is a hunger for consumers to return to physical stores and personally shop, the convenience of e-shopping that the pandemic has introduced is undeniable. Before buying a retail business, scrutinise its business model and see if there’s a streamlining of profit from online purchases. This will not only allow you to have multiple sources of cash flow, but it will also give you a backup business plan in case another lockdown is on the horizon.
Re-Think the In-Store Experience
Put yourself in the shoes of the consumer. If you’re putting the time and energy into going out to shop, you have to be compelled to do so. The main goal is to give customers a reason to visit your physical store to shop. It’s no longer just about choosing clothes, adding to cart, and cashing out. The basic in-store practices that existed pre-pandemic will only get you so far.
In order to thrive, elevate the customer service by going the extra mile every time. Explore the idea of giving away freebies, discounted movie passes, and restaurant vouchers to attract potential customers. You may also take advantage of your social media presence to spread the word about what customers can expect from visiting your store. While it may sound like a lot of work, this is an investment that’ll give you many returns.
Upskill Your Workforce
Employees are the bloodline of retail in the post-pandemic world. From the digital DNA to overhauling your in-store experience, the success of your business heavily relies on your workforce. In buying a retail business, ensure that key employees will stay. Keep in mind that these people are the reason why the business that you’re buying has been a success amidst the unprecedented challenges during COVID. Train them with the new technologies you have adopted – from kiosks, e-commerce, to the logistics of delivery.
The golden rule is to focus on the people: both customers and employees. It’s a symbiotic relationship of delivering the best customer experience possible. While no one can predict what the end of the tunnel will look like for the retail sector, it’s best to stay vigilant and prepared for all the ups and downs of this ongoing evolution. As a buyer, the wisest move is to check all the boxes of trends that will help your business thrive in this new era.
