How retailers can maximise online sales during physical business lockdown

New York – FashionUnited interviewed Koen Vanpraet, CEO at PXP Financial, in early March about how stores can maximise online sales to protect their business in the face of physical lockdown and other measures taken worldwide to fight the coronavirus pandemic.

How are retailers managing staff and customers through the pandemic?

COVID-19 has spread quickly and this has affected businesses across the UK, from both small enterprises to global companies. This has to a number of key concerns raised by both customers and staff alike. Are the hygiene and safety levels for both staff and customers high enough? Are the business’ services sustainable in these altered working conditions? And, can your enterprise effectively adapt to a rapidly changing landscape while maintaining some sense of normality for all stakeholders?

Retailers are doing the right thing by opening the channels of communication and advising customers of their policies. Customers will appreciate the value of the service still being provided if they are properly communicated to about what’s happening behind the scenes, and this applies to managing staff too.

Many industries are able to send staff to work from home. When it comes to maintaining a physical store this is not always possible. Instead, there are ways to create a safer environment for staff, such as putting in place a rota, reducing the number of group meetings, and being stringent when it comes to hygiene. While the UK is not on mandatory lockdown (yet) and keeping stores open is discretionary, we are seeing many implementing online services and home deliveries as an alternative to shopping in store.

The situation is developing on an almost hourly basis, so stores must keep an eye on government advice and news to make sure they’re up to date and acting accordingly.

What measures are retailers taking to strengthen and support a potential peak in demand from its eCommerce platform/team?

While supermarkets and retail stores selling every day essentials have seen an incredible spike in sales over the last few weeks, so too has their online stores. So much so that the Emerging Payments Association (EPA) recently reported that its members are seeing more online transactions made compared to a drop of over 25% in physical ‘card present’ transactions using Chip and PIN. Meanwhile, retailers that provide non-essential items are also turning to, or strengthening, their eCommerce capabilities to keep afloat while providing the nation with goods that they don’t feel comfortable purchasing physically.

eCommerce opens up a world of options as the UK hunkers down, but retailers need to make sure their systems can cope, whether that’s by ensuring they have the stock and processes in place to ship the goods, or making sure their website can cope with the unprecedented demand that has been placed on them in the last few weeks. Importantly, they need to make sure that their payment capabilities are as smooth and secure as possible.

How are retailers ensuring adhering to the ""flatten the curve"" move?

Retailers must adhere to the government’s guidance when it comes to flattening the curve, which predominantly means practising social distancing. In light of this, some retailers have completely shut down their stores, while others are keeping their stores open for a couple of hours a day or limiting the number of people to shop at any one time (or both).

That being said, the only way to truly flatten the curve is through collective action, adhering to social isolation strategies. Even though retailers are feeling the impact COVID-19 is having on their businesses, as a society we must work together to decrease the chances of the infection spreading.

What can retailers learn from earlier exposure to China's pandemic and crisis management?

The human-to-human transmission of COVID-19 hit retailers particularly hard in China with sales declining by more than 20% so far this year alone. That being said, retailers in the region understood that the impact on the industry would have been significantly worse had they not taken the appropriate measures issued by the government; social distancing, cleanliness and businesses going on lockdown. The country is now seeing a reduction in the number of cases reported.

Retailers in the UK are right to follow the government’s guidelines, but some have taken the decision to close their doors early, more closely mirroring China’s approach. While it’s likely to have a significant impact on their revenue, there are other channels they can use to help see them through, including government grants and generating income through delivery services and eCommerce.

Any practical recommendations for apparel retailers/businesses during this crisis?

The current landscape in light of COVID19 is unprecedented, for everyone in almost every scenario thinkable. For those in apparel, there could be lasting implications on accessing items made abroad, in particular from China, in the face of factories shutting down, as well as stricter import and travel restrictions. Even before workers are able to return to work following the lockdown, factories will have to undergo testing, and it’s uncertain how long this will take.

In light of this, communication will be key for brands, ensuring that customers will know what they can – or can’t – expect from the coming months.

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