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RETAINING NEW CUSTOMERS AFTER COVID
OPINION
TIME TO PIVOT FROM ‘SURVIVE’ TO ‘THRIVE’
CORONAVIRUS HAS SEEN THE CONVENIENCE SECTOR FLOURISH BUT THE TIME TO START THINKINGABOUT THE FUTURE AND HOW TO RETAIN THE MANY NEW SHOPPERS THAT RETAILERS HAVE SEEN ISNOW UPON US, ARGUES KAM MEDIA’S BLAKE GLADMAN.
BLAKE GLADMAN, STRATEGY & INSIGHT DIRECTOR, KAM MEDIA
It’s likely that there will be a net-positive increase in footfall to the convenience channel post-lockdown, but there’s a lot of work to be done to maintain it. New research commissioned by Cirkle and TWC, with research conducted by KAM Media, shows that 27% of convenience shoppers are planning to visit convenience stores more postlockdown, even when all other alternative outlets are open (from pubs to cafes to restaurants, etc.). In contrast 19% say they will visit less, as their usual alternatives open back up.
For many convenience stores the Covid-19 pandemic has been a combination of incredible challenges, both physically and mentally, as they tackle operating a physical store (and all the difficulties that represents) and handle the daily challenges of keeping themselves, their staff and their shoppers safe and protected. Yet, it’s also been a period of incredible growth in business performance.
Demand is outstripping supply and those stores on the frontline are recording record sales figures as shoppers flock to their local convenience store. It may be crass to talk economics during an environmental and social catastrophe but there’s no escaping the fact that, for many retailers, business is booming.
However, with great power (and great sales) comes great responsibility, and I’m sure if you gave a retailer the choice, they’d rather wind the clock back and have the world return to the way it was. Yet, we are where we are, and the bottom line is that the ‘new normal’ may have brought its fair share of tragedies, but it’s also brought a fantastic opportunity for convenience retailers to succeed and grow as shoppers returns to the streets.
At the height of the pandemic it may have even been easy for stores to attract customers and increase their spend. With shoppers unwilling to travel far, less concerned with price and more concerned with getting whatever they could, it all played into the hands of the convenience channel. During this period, retailers could be forgiven for losing focus on some of traditional building blocks of good retailing (store appearance, staff interaction, engaging shopping experience) as they concentrated instead on a stack-it-and-sell-it approach.
With new shoppers come new expectations and with the easing of the lockdown measures the world of options is about to become bigger once again. Convenience stores have been given a kickstart, and for some, who may have been struggling to survive coming into lockdown, have just received a triple-heart bypass. The key now, for all of them, is to grab life by the balls and ensure that they don’t waste this gift that been given.
Home delivery will continue to play a vital role in stimulating growth for convenience retailers as many customers are not accustomed to this method. In many respects the Covid-19 pandemic has fast-forwarded this particular innovation 3-5 years. So retailers who are not doing delivery or aren’t sure about it need to sprint to catch up. Otherwise they’ll be left behind.
Where shoppers may have accepted dips in standards over recent months, they won’t for very long. Convenience needs to pivot from survive mode into thrive mode quickly and seamlessly. This will certainly be a challenge as many customers will want and expect certain safety measures (maximum store numbers, social distancing, protective screens, etc.) to remain.
We are already seeing this challenge with pubs and restaurants as they look to reopen with these safety measures in place and yet still deliver an experience for their customers. Convenience (and all grocery for that matter) must start to think along the same lines. We can’t ignore that shopping is as much about the experience as it is about the purchasing. Those retailers that find the perfect balance will see the biggest wins and will be those that retain the highest proportion of their new customer base.
