Is Retail Ready for a Great Retail Reopening?
Brick and mortar retail isn’t dead, despite the COVID closures, but it will look different in a number of ways on the other side. Measures that layer onto existing retail structures such as social distancing, mask-wearing, and traffic control have received a lot of attention. But less awareness is being given to fundamental changes that will need to be implemented as retailers attempt large-scale openings. Initiating a great reopening will be the equivalent of every retailer, restaurant, bank, and other brick-and-mortar-based business opening hundreds of thousands of locations within a 4-12-week period (by contrast, a single successful retailer might increase store locations by 5 to 10 percent in the space of a year).
In my latest podcast episode, I interviewed Tom Buiocchi, CEO of facilities management leader, Service Channel to explore the new requirements for a brick-and-mortar restart.
Six key realities emerged from our conversation:
High touch will get the heave ho – Cosmetic and food counters and other frequently-touch surfaces will be eliminated, and water fountains will become a thing of the past. Hand dryers will disappear and be replaced by paper towel dispensers. Aesthetic cleaning will be upgraded to meet highly technical disinfecting and sanitizing standards.
New formats will flourish – More retailers that specialize in discretionary categories like apparel will take a page from forward-thinking grocers by opening drive-through locations, enabling curb-side pickup, and evolving some stores into micro warehouses.
Technology will track compliance – Strict worker accountability measures will ensure that cleaning is performed by third-party service providers. Technology-enabled compliance trails, such as the use of RFID tags on surfaces, will become commonplace.
Optics will provide assurance – Although deep store cleanings will continue to take place after hours, some retailers will choose to bring greater visibility to small-scale cleaning activities performed while consumers shop to instill confidence. Get ready to see armies of spray-bottle-wielding store associates!
Worker shortages may slow progress – Georgia’s reopening served as an early cautionary case study. Data showed a 110 percent increase in cleaning and disinfecting work orders and a subsequent doubling of declined work orders, primarily due to over-scheduling. These deficits were exacerbated by cleaning businesses that folded early on in the corona crisis. As more retailers attempt to pull the trigger, backups will increase.
Phased approaches are advisable – Although most retailers are eager to make up for lost revenue and get the brick and mortar party re-started, not everyone can go first. Industry-wide collaboration and a willingness to open up gradually will pay off in the long term.
The magnitude of the great retail reopening can’t be over-stated. It won’t be as simple as flipping on a light switch – many details will need to line up if retailers want to get it right. Retailers should set the stage now by evaluating the available resources and setting realistic expectations for their organizations, third-party partners, and consumers.
Check out the podcast interview.
