Consumers in many areas of the world have tightened their wallets and eliminated discretionary spending because of lost jobs, lower wages and uncertainty about how long the COVID-19 pandemic will last.

People are facing a retail landscape unlike any they’ve dealt with before: toilet paper is out of stock, packages of chicken are being rationed, and shoppers who venture into stores are being told to leave their reusable bags at home. COVID-19-related shelter-in-place orders have either forced or prompted consumers to shop differently – often online for the first time — and this multi-generational event will likely shift the mindset of shoppers forever.

With that shift has come new “rules of engagement” for retailers. Here are a few of the trends we’ve seen emerge over the last few weeks and are likely to remain long after stay-in-place orders are lifted.

More shoppers are experimenting with e-commerce than ever before

Consumers have changed their priorities, and retailers that can deliver upon their daily needs are thriving. Hand sanitizer, eggs and medications are must-haves while fashion and furniture are not. And as discretionary spending continues to decline, niche categories — think disinfectant wipes, disposable gloves and immune-building supplements — will increase in demand in the months ahead. So will items that allow us to bring the outside world (safely) inside our homes: Adobe Analytics found that orders for fitness equipment and computers in March saw 55% and 40% boosts in online sales respectively.

According to Gordon Hasket Research, one-third of shoppers bought food online during the early phase of pandemic shopping (week ending March 13). Of those shoppers, 41% said it was their first time, and more than half of first-time orders went to Walmart — which has benefited from investments in online pickup and tech improvements it made before the COVID-19 crisis came about.

People who start using online food shopping and purchasing meal kits might find the convenience worth it, even once they can go back to shopping the way they did before. Further, as consumers try new shopping options and become more digitally sophisticated, those habits are likely to stick — especially if they order several times, enjoy the experience and get used to it.

In the middle of this health crisis, many retailers have innovated by listening to what shoppers want: fewer visits inside stores because of concerns for coming in contact with others and jeopardizing their health. They want a convenient yet contact-less way to order their items and pick them up, and more retailers than ever have obliged.
In fact, BOPIS (buy online pick up in store) and BOSS (buy online and ship to store) are no longer alphabet soup, but commonly used lingo as both methods of shopping have skyrocketed. According to Adobe Analytics data, BOPIS orders — which include curbside — increased 87% year over year from late February to March 29. Grocery stores, pharmacies and restaurants aren’t the only ones getting in on curbside pickups: Kohl’s, Best Buy and Dick’s Sporting Goods are among the big names that recently added this option, too.

Innovating to meet customer needs during COVID-19

The retail industry is at a critical juncture. Stores must do their best to provide a positive customer experience amid the COVID-19 crisis. This includes properly managing out-of-stocks and delivery delays, as well as using more personal shoppers through companies like Instacart. 

It’s important for retailers to revisit, revise and integrate their digital strategy across the enterprise and to have a unified data platform that allows them to adjust as consumer expectations shift week-to-week, and even day-to-day. Mastering their business-critical information in a master data management solution will help retailers advance their digital capabilities in an increasingly digital retail landscape, which, in turn, will help better serve today’s shoppers.

Looking to leverage data to keep up with the most popular purchase options? Start by reviewing the operational characteristics around individual pickup options (location data), individual customer preferences (customer data) and business rules about product data and delivery options (product data). Then, automate these processes based on new data to ensure apps, websites and processes reflect new learnings to meet and even exceed customer expectations.

Those retailers embracing digital transformation — from marketing to delivery — will likely be the ones that come out on top once stay-in-place orders and the COVID-19 crisis have subsided. Start preparing now by taking a deep dive into your operational, product and customer data and use that information to roll out the best products, and pick-up options, for your store.

Brian Cluster is director of industry strategy for retail, Stibo Systems.