Panic shopping has somewhat subsided, and retailers aren't quite sure how to respond. We've entered a second wave of shopping patterns and they may not last forever. As a result, retailers are trying to scenario plan for something they have not way to accurately predict.
After review, Modern Retail has retracted this article
J.Crew has had problems for years — but the coronavirus accelerated all of them. Now, the retailer is filing for bankruptcy. The question remains: how did it get here? And will it ever be able to rebound again?
Amazon is witnessing historic demand, and third-party sellers are noticing a wave of changes. For one, the platform's algorithms to crack down on bad behavior is causing adverse effects. And brands have been unable to find any way to directly communicate with Amazon. One top brand explained just how difficult it's been to sell on the Amazon platform.
Amazon's sales went up during the first quarter of this year, but so too did costs. This certainly has to do with the coronavirus -- as do the plans to re-invest all of its profits into the business. The company's latest earnings report shows that even the industry leaders have some cracks in the business.
Grocery stores changed overnight with the rise of coronavirus. Because they were able to stay open, they had to figure out how to adapt. Some have implemented new ways to better facilitate digital orders. Others have re-thought their interiors to be safer for customers and staff alike. Here's a look at all the physical changes the grocery industry has seen.
Many department stores and other legacy retail brands are seeing issues they thoughts were months away come to a head now. At the core is the issue of cash-flow. With billions of dollars in debt and stores unable to sell product, these older brands may finally have to face the music.
With many businesses closed, CPG brands are seeming sales plummet. Indeed, Coke just reported that it saw a 25% sales volume drop earlier this month. As a result, many bigger brands are likely trying to rethink their digital strategies -- and are looking to adopt more direct-to-consumer programs.
Target's CEO just warned that this Q1 will bring lower profits than expected. While not surprising, it does paint a bleak picture for other retailers in similar situation. Companies big and small have had to shift their program online. If Target is having difficult making the economics work, it's going to be much worse for others.
Amazon has historically had difficulty keeping track of bad actors on the platform. Now, the company is having the opposite problem -- numerous brands are receiving automated alerts about issues they claim are false. For some, Amazon alleges price gouging. For others, it's about whether their FDA approved product is truly over-the-counter. For these sellers without a direct line to Amazon to appeal they're stuck with products suspended and sales dwindling.
Some online brands are seeing sales spike, others are plummeting. They are all dealing with myriad other issues putting pressure on the overall business. Some startups are trying out new digital campaigns to try and account for the vast behavior shifts -- all while staying cognizant of the bizarre times we're all in. It's a difficult tightrope to walk, but showcases brand new marketing terrain.
To many, Facebook Marketplace is a destination for used goods and/or oddities. But more brands are looking to the online marketplace to sell their goods -- especially as they experience woes with Amazon. While there is more interest in the social network's commerce tools now, it's unclear this wave is longterm.
Many brands live and die on the Amazon platform. Now that many non-essential items have seen a profound decrease in demand, these companies are in a bind. Some are trying to adopt competitive tactics that only a few months back they were allergic to.
Whole Foods just announced that it was closing one of its popular Manhattan locations to handle only digital orders for the time being. It highlights the crunch even the most prepare retailers are facing. But once things begin to normalize, all grocery players are going to have to re-think and re-invest to better handle online fulfillment.
For DTC brands, this was the year to reach profitability and expand beyond online. Now, no one can go outside and most sales have plummeted. This changes the strategy, especially for companies that pinned growth on new retail opportunities. How to proceed, however, is unclear.
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