Early in my career, I learned that it is unwise to rebuild a retail outlet on site when there is an option to build on another site better positioned to serve the trade area. Taking an outlet off-line for reconstruction, forced our customers to seek alternatives. They began shopping with other brands, creating new habits. And, the rebuilt outlet seldom regained their full sales volume. It was a bad investment. Building a new outlet in a better location avoided the lost revenue while creating excitement for the new store. It was usually a better investment.
Once a new shopping pattern is established (read – a new habit), it is difficult to revert. This experience gives me confidence that the effect of the Covid-19 outbreak will create new habits and accelerate other trends.
Trends to Watch
- Improved/Greater Focus on Personal Hygiene
- Remote Working
- Internet Shopping/Home Delivery
- Tele-Medicine
- Virtual Meetings
The first change I expect is an increased vigilance toward sanitation. It is obvious that people are likely to become accustomed to washing their hands more often, hopefully using anti-bacterial soap. It’s reasonable to expect retailers and other employers to adopt measures to better protect their customers and employees. Who knows, this might lead to a reduction in overall flu cases, reducing absenteeism. Even now, I have a client in the Janitorial Services Sector who is generating significant add-on sales from an innovative sanitizer product.
My friend Faith says that this pandemic will be the catalyst to make telemedicine a more widely accepted modality of care. “Telemedicine has been operational for 40 years. It has had a tremendous resurgence since 2016 and continues to increase in utilization. Telemedicine, including telehealth, is viewed as a viable option to access needed care. Copays and other fees are being waived both for commercial and Medicare patients. The virtual platform that is steering patients will become more widely accepted and utilized. There was already a push for digital applications to handle chronic conditions, urgent care, follow up visits, and medical consultations. It will be difficult to resume pre-pandemic modes of care.”
As I begin my third day of voluntary quarantine, I have changed the plans for our monthly meeting in favor of a ZOOM meeting. Based on government guidance, I decided to conduct a virtual meeting instead. It isn’t as useful from a networking perspective, but the content of the meeting will be presented well, and I will record the meeting for future reference. I am hearing that many of my colleagues have been engaged in virtual meetings this week. I imagine that many will become more accustomed to virtual meetings during this quarantine.
As people work from home for the next two weeks, many managers who are uncomfortable with remote working will have an opportunity to change their thinking. Imagine the overall benefit of working from home. Less commuting time via automobile will benefit employee mental health and productivity while lowering the cost of owning an automobile. The benefit to the environment and maintenance of infrastructure will be enormous. Mass commuting to and from work by automobile is no longer practical or sustainable.
Yesterday, I heard that Amazon.com is hiring another 100,000 workers. It’s safe to say that the home shopping trend, including restaurant delivery, will experience a surge of growth. One can imagine how restaurants will change their business models to accommodate more home delivery. I expect the creation of outlets providing delivery and carry-out only, without any accommodations for dine-in customers. This is a huge opportunity for grocery stores as well.
For the next two or more weeks we will be living outside our normal patterns. Disruption of our typical routine will certainly result in the creation of new habits. Working from home, making greater use of technology and new applications will reveal better ways to accomplish our work. I expect that our quarantine will be a catalyst for accelerating change.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Jim Weber – Managing Partner, ITB Partners