(Visited 73 times, 1 visits today)
(Visited 73 times, 1 visits today)

Retail stores are preparing to open: what will the next day bring

In anticipation of the government’s final announcements regarding the reopening of the stores, retail is preparing its business plan.

Although critical data remains unclear, chains and individual stores are preparing for a controlled flow of customers and are taking precautions (distances, special plexiglass partitions, masks, gloves, antiseptics) for employees and customers, following the model that has already been tested in Super Markets.

It is unknown at this time if retail stores will open massively or partially. The people in the business support the opening of all stores. The possibility of partial opening starting with the smallest stores, finds a large part of the retail against it, due to competition and due to factors related to health protection. They say that if retail is opened en masse, congestion will be avoided. They also argue that space-based segregation will work negatively, as more consumers will attend smaller spaces.

Negotiations for store leases are still active and special agreements are expected to be concluded for the whole of 2020.

In terms of wage costs, two different trends are developing. Inevitably, the stores will open with less personnel because the protection measures require distances and also the consumption is predicted to be modest. In addition, part of the retail workers will continue to use the special purpose leave, as the schools remain closed and are not scheduled to open before the shops, but also because there are still health risks for those of vulnerable groups.

Based on the above, much of the retail trade – since it cannot make redundancies – chooses shift work. This regime reduces wages and employer contributions, but inevitably also the income of employees.

The other trend that is developing is internal restructuring in the workplace. After the experience of the last two months, retail has faced a new reality, which is associated with the acceleration of the penetration of e-commerce. Thus, in many large chains, workers have moved inwardly to strengthen call centers and the supply chain, a trend that is expected to intensify further.

According to trade figures, the pandemic brought rapid changes that were expected to happen in the next 5 years. Already, the shift to online shopping has tested the infrastructure and boundaries of chains and partner institutions.

In this new reality, retail is trying to assess the sustainability of online shopping, with forecasts pointing to an increase in penetration.  According to forecasts, 50% of the new online consumers will remain loyal to the new shopping channels.

This shift leads to the strengthening of infrastructure but also the creation of different jobs in the retail trade. However, adding that in the long run, this development will reduce the number of existing physical stores.

Original Source: Euro2day

Adaptation/Summary: Kiki Athanasiadis