How will retail weather the next recession?

The current global pandemic spells trouble for the retail sector. 

With many countries experiencing lockdown or employing rigid social distancing measures, we’re living through an unprecedented time that will lead to the closure of many well-known retail brands and provide challenges for everyone else. 

Through global uncertainty, one thing that all retailers have in common is that they are all affected by the crisis.  

But how will they weather the next recession?

Revisiting mission statements

At the heart of every retail business is the mission statement. Often brands lose sight of their mission in a race for profits. Now is the perfect time to go back to their original ideals and understand how they can make a difference in the lives of customers during these challenging times. 

Those retailers that can show compassion and put people above profits will find that they gain the natural support of customers. Goodwill and a sense of unity are stronger messages that ‘business as usual,’ and in the age of social media, these messages travel far.

Double down on brand image

It may not be the time to invest in expensive rebranding right now; however, once stores begin to open and trade again, it will be a time to remind customers of the brand. 

However, securing additional instore branding that offers flexibility to display changing marketing messages is vital. If Covid-19 has taught businesses anything, it is necessary to constantly adapt and re-learn how to do business. 

This may mean digital signage that can be easily updated, as well as buying new branded, easy-to-clean staff wear from The Lanyards Factory to remind customers of your brand identity. 

Creating flexibility in retail operations

During the last financial crisis in 2008, the high street became a desolate place. Retailers closed their doors on units for the last time and left empty units. These voids deterred shoppers, and it took a long time to rebuild visitor numbers. 

With bricks and mortar facing a huge challenge following the coronavirus crisis, is it time to revisit the lessons learned from the last financial crisis.

The success stories of the last financial crisis had flexibility at their operational core. This is something that all companies will need to adapt very quickly right now. 

Where units lay empty after the credit crunch crisis, savvy retailers bartered with landlords for short-term leases to open pop-up shops. This gave many the opportunity to test the local market and see if the sales were strong enough to make a future permanent store in the area. It allowed brands to grow customer awareness without the need to put down expensive permanent roots in towns, cities, and shopping schemes. 

With a looming recession, companies that can wheel out stores quickly and cheaply to make use of short-term leasing opportunities will help keep themselves trading. Not only this, but they will also help prevent the high street from returning to those difficult financial times that we experienced 10-12 years ago.