Even through a pandemic, kids never stop growing and learning. With the start of the school year right around the corner and numerous questions remaining about how that will take shape, schooling itself and back-to-school (BTS) shopping will look very different. Both educational learning and shopping have increasingly shifted online since the pandemic began, with some modified in-person models. Given this new, uncertain reality, how are retailers adapting to provide students the clothes and other supplies they need to kick the 2020 BTS season off right while keeping customers and retail employees safe?
Increased E-commerce Offerings
Retailers appear to be ramping up to meet demand, at least with their advertising budgets. According to COVID-19-specific research by our client Kenshoo, e-commerce and social ad spending are up across the board for retailers. For giants like Amazon, with sales up 29% in Q1 2020 because of COVID-19, or for small, local shops setting up their first online shopping platforms, increasing or developing new e-commerce offerings has been key to adapting to shifting consumer behavior during the pandemic.
We may see fewer out-of-home ads from retailers to promote BTS essentials, in favor of more targeted spending in social media and other channels, particularly as many of us spend more time shopping online than ever before.
For example, big box retailer Walmart is offering BTS shoppers access to an array of omnichannel services this year, including same-day contactless pickup, express delivery and in-store mobile payment on the Walmart app. Staples also recently announced a partnership with Instacart to offer same-day delivery, giving parents and teachers a safe and convenient way to shop for learning essentials.
The increased online shopping possibilities could translate to time and money saved for many families, not to mention safer shopping.
Modified In-Store Environments
Not only is protecting customers and employees from COVID-19 the right thing for retailers to do – it’s also good for customer satisfaction, retention and loyalty; sales and PR. No one wants to shop at a store where they feel at risk, but some purchases lend themselves to the traditional shopping experience. When it comes to such items as new clothes, sports equipment or electronics, ensuring customers feel safe when entering the store could make or break some retailers in what has already been a challenging year.
Even for big-ticket purchases, e-commerce continues to grow; for example, Best Buy’s online sales, which include both curbside pickup and delivery, are up 155% since late March. The many alternatives to in-store shopping also reduce crowds at retail locations, allowing people who choose to shop in-person to do so as safely as possible.
Fortunately, big brands like Starbucks, Menards, Apple, Costco now require shoppers to wear masks. Retailers have established other measures to ensure customer safety, including in-store capacity limits, curbside pick-up, Buy Online Pickup In Store (BOPIS), and new cleaning and sanitizing protocols.
A Preview of Peak Holiday Shopping Season?
Our client Logistyx Technologies recently offered insights for retailers highlighting the challenges COVID-19 could create for peak season shopping and e-commerce fulfillment in particular. How the BTS season crystalizes for retailers, the lessons they learn and the changes they make could have significant implications for the 2020 holiday season.
How can we mitigate health risks as more customers want to shop in-store? How should we manage overstocked spring and summer items? With an eye on the looming holiday season, retailers will likely be testing and refining their best strategies during BTS 2020.
Of course, as the pandemic progresses, it will likely bring more questions than answers, but, hindsight is 2020. Considering back-to-school season as a learning opportunity may be just what retailers need to do some learning of their own and better prepare for what to expect through the end of the year and beyond.