Taking Stock: How Retailers Are Preparing For The Post Covid-19 Era

De-risking strategies include inventory changes, budget reallocations, short-term planning

- Forum Gandhi

As uncertainty becomes the norm for the modern retail industry across geographies, retailers have started planning for the post-COVID-19 era.

While supply chains have been disrupted, and consumer demand has diminished alarmingly, industry players have effected significant changes to de-risk themselves — such as revisiting the inventory assortments as consumers shift to buying essential items; adopting a short-term, three-month business model; restructuring budget reallocations; going omnichannel with more focus on online sales, and postponing expansion plans.

Inventory rejig

According to an online survey conducted by Nielsen India across 23 cities earlier this month, urban Indian consumers are likely to cut discretionary spending in the coming months. Sameer Shukla, West Market LeaderSouth Asia, Nielsen Global Connect, said, “Consumers have become cautious due to the COVID-19 pandemic and will be bearish on discretionary spends once normalcy is restored in the coming months.”

Samir Misra, COO, V-Mart, said consumer sentiments would be to “live with less” and deriving more value on every penny spent. “Brands that can respond with agility to new realities, new emerging trends, will gain traction faster,” said Misra.