Why Brick and Mortar Retailing Will Outlast the Global Pandemic
While the impact of Covid is likely to be felt for an extended period of time, one source we exclusively spoke with at ICSC says that the basic human desire for person to person interaction and sensory stimulus that sit at the heart of in-store shopping will ensure its longevity.
LAS VEGAS—Since the Covid pandemic started in March 2020, the retail industry has undergone the greatest shock for decades with many stores having had to close for extended periods. So says Diane Wehrle, marketing and insights director at Springboard, during the ICSC national conference here in Las Vegas. She tells GlobeSt.com that the closure of stores led to an increased migration of retail spending online, however, in large part this has been an exacerbation of behavior that was clearly evident even before Covid.
“The key aspect to remember is that despite the increased amount of retail spending online, the majority of retail spending continues to remain in store,” she explains. “The fact that even a global pandemic has not significantly dented the extent to which consumers shop in stores demonstrates the continuing importance of in-store retailing, and reinforces its long term future.”
She says that while downtown shopper traffic is lower than before the pandemic, it has strengthened from -62.8% below the 2019 level in January 2021 to its current level which is -30% below 2019. “The importance of brick and mortar retailing to shoppers is reinforced by the fact that over half of those consumers who are now working from home have not changed their shopping habits from before Covid (Springboard US Retail Consumer Survey), which demonstrates why a number of pure online retailers are currently investing in brick and mortar stores that will trade alongside their digital offering.”
Overall, she says that while the impact of Covid is likely to be felt for an extended period of time, the basic human desire for person to person interaction and sensory stimulus that sit at the heart of in-store shopping will ensure its longevity and ensure that brick and mortar retailing will outlast this global pandemic.
Check back with GlobeSt.com for more from the national ICSC conference here in Las Vegas and keep an eye out for more exclusive commentary from attendees.