COVID-19 Push Retailing Giants To Go Online

COVID-19 Push Retailing Giants To Go Online – No one knows what will happen next with the coronavirus crisis, but when it comes to how Americans are shopping, there is one thing of total and utmost certainty: Online retailing will gain market share and become much more popular.

That irrefutable outcome of the pandemic will make retailers that have never truly developed e-commerce capabilities—or, worse, walked away from the channel—do a 180-degree turn and put a massive push behind getting their online operations into competitive shape.

Although most national retailers have been in the e-commerce game for decades, it’s fair to say that few of them have their acts totally together.

While Walmart and Target on the discount side, Macy’s in department stores and specialty retailers like Best Buy, Williams Sonoma, RH and the Gap brands have healthy online businesses, other sectors are far behind in building their e-commerce sales. Amazon’s expanded business over the past few weeks is one more piece of proof.

RELATED: Jack Of All Trades Entrepreneur Mistakes

As the coronavirus has caused the shutdown of more than 150 retailing companies’ complete brick-and-mortar operations and countless more individual units based on geography and format, retailers that depended on them for the vast majority of their sales are finding their revenues at a virtual hard stop.

Without online to fall back on, they may be waiting weeks—some suggest longer—to be able to get back into business. For some, that will be too long, and for those that have been teetering on the business edge, this could be the final straw to push them into insolvency.

But there are entire sectors of the retail business that are vulnerable right now, and these are the ones that must be rethinking their business strategies:

Off-price stores—from the TJX brands like Marshalls, TJ Maxx and Home Goods to Ross Dress for Less and other, smaller companies—have largely avoided e-commerce. It represents a tiny part of the TJX mix, and Ross doesn’t even sell online.

Worse, another big national player, Burlington, announced just before the coronavirus outbreak that it was shutting down its nascent e-commerce operation. While their physical merchandising model may not translate well online, all of these retailers will need to find a way to do digital business.

Deep-discount grocery retailers Aldi and Lidl have no online capabilities at all. As they continue to gain share in physical stores, they are totally noncompetitive with Walmart, Kroger and regional supermarket chains. That has made them especially vulnerable now. Even if they offer curbside pickup, it’s not enough considering customer needs and expectations today.

Dollar stores, notably Dollar Tree and its Family Dollar brand as well as chief competitive Dollar General, have largely failed to develop e-commerce capabilities. Years ago, they used to say their customers didn’t go online or didn’t have credit cards, but that’s no longer the case.

As they attract mainstream shoppers from across the income and social spectrums, they will be hurt by not being online. Independent specialty retailers, no matter what the product category, have had a love-hate relationship with e-commerce almost since its beginning.

Without the resources—physical, digital or manpower—to service online business, they have given it lip service or perhaps used third-party service providers that provided perfunctory presences. For these independents, this is the day they must take their online businesses seriously and give them the attention they need to be successful.

More from author

Shift Away From Cash And Credit Cards To Digital Wallets

By 2025 digital wallet use will account for just over half (52.5%) of ecommerce transaction value worldwide,...

Amazon And Ebay May Crash On Black Friday And Cyber Monday

TECH bosses have warned of a potential systems crash for e-commerce systems as Black Friday and Cyber...

How COVID-19 Has Propelled The Age of Rapid Online Checkouts

How COVID-19 Has Propelled The Age of Rapid Online Checkouts: The Covid-19 pandemic has impacted American businesses...

Uncle Matt Organic Orange Juice Goes Nationwide

Uncle Matt Organic Orange Juice Goes Nationwide: Uncle Matt’s Organic, the nation’s #1 selling brand of organic...

Related posts


Latest posts

How Working From Home Decreases Your Quality Of Life If You Do Not Set Boundaries

How many of us get out of bed, put on some sweats, and then sit down in the living room, kitchen, or bedroom in...

Employees Resist Returning To Their Offices To Work And Prefer To Work Remotely

The result is a split in the workforce into those who support in-office obligations and those who want remote work to stay the norm. The...

A Checklist For Newbies Entering Affiliate Marketing In 2023

As a way to increase brand exposure and produce passive revenue, affiliate marketing has grown in popularity among both people and companies. It does, however,...

Want to stay up to date with the latest news?

We would love to hear from you! Please fill in your details and we will stay in touch. It's that simple!