Commentary

The COVID-19 pandemic has had a profound impact on all facets of life, the grocery and retail sector included. Consumers have increased their online interactions with retailers and brands and will continue to do so long after the pandemic is over. 

Since the first lockdown in 2020, many retailers had to pivot to e-commerce for the first time in a bid to help their businesses survive.

A Guide for Brands to Win the Mega Sale Season

The Covid-19 pandemic has driven the market and led to major shifts in consumer spending in the past 12 months. The grocery sector is one to watch, as more than half (54%) of Singaporeans spent more on groceries in the past 12 months, according to Worldpay from FIS’ 2021 Generation Pay research. The grocery boom is poised to continue, with 9 in 10 consumers expecting to spend the same or more on groceries in the upcoming year.

If it sounds like we’re going around and around in circles, we are!

To say that the retail sector in Singapore has been hard hit over the past year will be an understatement.

Across the globe, COVID-19 interrupted almost everything in the physical world with some activities and sectors saved only by digital. The technology players could bring new advantages and opportunities as business operations and client engagements all migrated successfully online. Inevitably, the retailers in mega malls and hospitality sectors faced the most significant challenges with numerous players either ceasing their operations or had to shift to a virtual alternative.

Many retailers, especially fashion retailers, are stuck with excess amounts of inventory meant for their stores over the pandemic. However, with the high seasonality of fashion products, retailers are now being faced with ageing inventory and cash tied up in stock that is becoming obsolete.

Stores have always been at the epicentre of retail disruption, be it the onslaught of digital or the recent pandemic. Despite ominous predictions, stores have risen like a phoenix to cater to shifting business landscapes and shopper behaviours. Retailers who view their stores through a new lens will realize endless possibilities because:

Modernization of commerce has emerged as a fundamental need for the future of retailing.

It is a tough time for the retail industry. 2019 saw retailers struggling to make ends meet as sales fell consecutively for seven straight months. Meanwhile, the year 2020 has brought COVID-19 and widespread lockdowns that may well be the death knell for brick-and-mortar retail businesses. 

The iconic Great Singapore Sale (GSS) goes online this year as the retail industry creates a “new normal” shopping experience amid the COVID-19 pandemic. This may well be a sign of more disruption to come as consumer habits evolve and retailers recalibrate their business strategies.

Around the world, major sale events like Singles’ Day, Black Friday, Cyber Monday and many others have delighted consumers and drove massive spending behaviour. Lured by the prospect of major savings on marquee brands, we have all at one point frantically clicked to add items to our online carts. In Asia Pacific, Singles’ Day in particular has reshaped the region’s eCommerce landscape and increased the prominence of online retailers. A major worldwide shopping festival turned cultural phenomenon, Singles’ Day and similar spinoffs (9.9 sale, 10.10 sale and 12.12 sale) have helped to catalyse the region’s shift towards eCommerce, luring consumers online with attractive promotions, steep discounts, and offers that are just too good to pass up.

As we head into the second half of the year, it’s become apparent to Asia’s retail sector that recovery in spending to pre-COVID-19 levels will be slow and protracted. The initial rush to spend after months of lockdowns has dissipated. Many consumers have turned cautious and are tightening their wallets.

The Asian retail market is beginning to see light again with the gradual reopening of the supply chain trade. Along with the recent commitment by APEC member economies to strengthen supply chains and promote the digital economy to fast-track recovery from the economic crisis, businesses need to adopt technology to reduce uncertainties and protect their employees and customers in the process.

COVID-19 sent shockwaves across businesses and the economic order, crippling brick and mortar retail experiences and rocking supply chains the world over.