STUART, FLORIDA – MAY 04: Jake Sanders works at the Tommy Bahamas store (Photo by Joe Raedle/Getty … [+]
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As U.S. retail stores begin to slowly reopen, shopper expectations have shifted from experiential retail to a focus on stores providing a safe shopping environment for themselves and the employees. Highly personalized service and one-to-one shopping seem to be a thing of the past, at least for the moment. Shoppers that are coming out from being homebound for the past six weeks will be looking for stores to demonstrate how government mandates and CDC protocols will be followed and how previously closed stores will update the shopping experience.
The titans’ call to action
HOUSTON, May 5, 2020 Customers shop at a shopping mall in Frisco, on the outskirts of Dallas, Texas … [+]
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Macy’
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s is opening about 118 stores between last week and this week and it expects reopened stores to initially bring in only about 15 to 20 percent of their pre-pandemic business. Measures have been put in place to provide a safe environment including processes for social distancing, returned merchandise, fitting room sanitation and employee training on safe practices. Additionally, Jeff Ganette, CEO of Macy’s, said in a presentation, “Beauty departments will offer “no-touch” consultations and demonstrations with the option to test products on a piece of paper with a diagram of a face.”
CEO of ULTA Beauty, Mary Dillon (Photo by Desiree Navarro/WireImage)
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Mary Dillon, CEO of Ulta Beauty
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, stated in a press release, “In the last few weeks we have introduced curbside pickup in more than 700 locations and Monday (May 11) we will reopen approximately 180 stores in select states.” Ulta is a leader in safe shopping standards collaborating with government agencies and industry experts from the Retail Industry Leaders Association (RILA) to inform best practices and better understand the new shopper journey. Included in the safe opening plan are face coverings, social distancing, salon service safety, beauty testers, in-store cleanliness and associate wellness.
Nordstrom
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is focused on continuing to build its online digital strategy and has made the decision not to reopen stores at this time. According to the business update, Nordstrom’s market strategy
Erik Nordstrom, CEO Nordstrom (Photo by Taylor Hill/FilmMagic)
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enables customers to shop seamlessly across multiple touchpoints including its two brands Nordstrom and Nordstrom Rack
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, in stores and online. Erik Nordstrom, CEO of Nordstrom, stated in the press release, “We’ve been investing in our digital and physical capabilities to keep pace with rapidly changing customer expectations. The impact of COVID-19 is only accelerating the importance of these capabilities in serving customers.” When stores reopen, they will be kept safe for employees and customers and will include some initiatives such as providing face coverings to customers and employees, conducting health screening for employees, social distancing standards, increased cleaning, returned merchandise procedures and modifying the fitting room experience. As a family-run company, Nordstrom considers the employees and customers part of the family and makes decisions based on the impact of these stakeholders.
Shopper sentiment has changed
There is a shift in how consumers feel about shopping in a physical store, a change in buying habits and uncertainty regarding future spending. Shoppers want to see retailers following proper protocols for themselves and the employees. Even when retailers set up processes and procedures to provide environments that minimize risk, some shoppers may still be hesitant. For example, extra care in sanitizing fitting rooms may not result in shoppers feeling comfortable with trying clothes on. Shoppers will be focused on value and may be less likely to spend lavishly on discretionary products.
Customers value companies that take care of their employees
STUART, FLORIDA – MAY 04: Tommy Bahamas (Photo by Joe Raedle/Getty Images)
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Employees want to get back to work but need to feel safe and cared for by retailers. Leading companies go beyond safe work practices dictated by government agencies and build a mutual commitment with their employees. Factors that drive employee engagement are direct communications, open-door policies and empathy for the employees.
Education and training can lessen fears and anxieties as employees come back to work. In addition to wearing masks, companies will step up cleaning protocols and use signage to help manage social distancing practices.
Law360 discusses how businesses that restart operations will face a slew of legal dangers and logistical challenges as they bring back employees who have been teleworking or furloughed. Some of these considerations include mass rehiring, return to work protocols, providing safe working conditions, and social distancing mandates. Employees that feel taken care of by the company will take better care of customers, who conversely want to see employees being taken care of in the new shopping environment.
Retailers demonstrate a new shopping environment
Shoppers will be expecting evidence that retailers understand the new shopping environment which can include visualizations, tangible assets and word-of-mouth from employees. Signing and website updates will include educational information to help inform, remind and educate both shoppers and employees. Audio aspects will include hold music changed to information about the coronavirus safe shopping standards or in-store audio messaging as customers shop. Tangible assets will include plexiglass barriers or sneeze guards installed, hand sanitizer placed throughout the store and employees wearing face coverings. Employees’ behavior and actions will provide indicators to shoppers about how the company is following through with precautions.
Offering alternatives will ease shopper apprehension
Providing multiple ways to shop will help customers who may be apprehensive of shopping in the stores. Retailers are offering pick-up, curbside, ship-it, online and live streaming. Strategies around contactless commerce will help to alleviate stress such as digital styling boards, virtual events, and mobile payments.
Collaboration across industries
Collaboration across business segments has allowed for a great sharing of best practices to help retailers quickly transform the shopping environment to meet new guidelines and shopper expectations. Essential stores like Kroger
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have not only shared their own insights on what they learned (see Kroger’s Blueprint for Business) but have also provided tangible assets to be used by other retailers including signs and audio.
RILA and the National Retail Federation (NRF) released a Blueprint for Shopping Safe outlining a phased-in approach to reopening retail. Cathy Hotka, principal of Cathy Hotka & Associates, stated: “The Store Operations Council, representing retailers in a wide variety of formats and segments, has formulated a set of topics for retailers to think about as they gradually reopen stores during this time of the pandemic.” Reopening Retail Safely is the product of conversations with dozens of retailers, industry analysts, key influencers, and technology companies.
The new normal
Adhering to government-driven procedures, reduced occupancy, safe distancing and executing safe shopping procedures will be the basic minimum expectation of shoppers. Explaining the “why” and educating shoppers throughout the journey will help minimize risk while increasing compliance. However, getting shoppers to abide by the new procedures and measures may be more difficult once shoppers enter the stores. Simple requests to wear face coverings or use hand sanitizers may be ignored by some shoppers which will leave retailers a steeper hill to climb.