Information Technology in the Post-COVID Environment

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Retailers lacking an online presence have been the most severely impacted by COVID, and in order to survive they will have to integrate an omnichannel strategy that reflects the shift to online shopping. This can entail a considerable investment, and many will need to consider a mixed strategy. The crisis has also increased the value of engaging with customers and differentiation through services, such as online delivery. A rapid and significant increase in demand for certain retailers (3-5 times high season volume) revealed the fragility of the supply chain. Standard demand projections and just-in-time deliveries resulted in empty shelves. Some retailers were even forced to shut down their websites to lack of merchandise. Companies are also realizing that they need to focus on developing online strategies to build customer loyalty.

Changing consumer behavior

The lockdown has changed consumer behavior and consumers will spend less due to a variety of reasons, from economic pressure to a reassessment of values. As online shopping increases, foot traffic in brick and mortar stores will decline and retailers will have to adjust to this change.

 Shifting strategies

Retailers will be forced to rethink their strategies, adapting to new circumstances and becoming more flexible. IT strategy will also focus on agility, with companies poised to make changes quickly and adopt new technologies rapidly as necessary. Firms will introduce combined fulfillment centers, with delivery from warehouses and the closest stores. Retailers will also cement partnerships with third parties for enhanced delivery capabilities. DataArt recently conducted a survey, which found 40 % of respondents will transform 50% of their businesses, while 33% will change their businesses completely and 11% will transform their core business, while only 9% will maintain the status quo.

 Digital solutions will enhance the customer experience

With fewer brick and mortar store and fewer “offline” customers, retailers will look for ways to focus on the individual shopper. Customers will be targeted with personalized and exclusive merchandise, and offered every option to make the experience appealing – same-day delivery, easy returns, etc. Fulfillment and rapid delivery will be a point of emphasis. Brick and mortar locations will also benefit from IT solutions such as virtual lines, AR navigation, virtual fitting and more. Given the necessity of social distancing, retailers will also employ contactless payment and fulfillment. Self-service checkout and self-scanning will also become standard technologies. Every retailer will need to offer online integration and using data insights to enhance the customer experience will gain traction. RFID will allow for better inventory management, which will ensure that customers are not frustrated by merchandise being out-of-stock.

New opportunities for retailers

The pandemic has forced consumers to make many changes in their behavior, and one ancillary benefit is that people are becoming more open to trying new services that they might otherwise have shown little interest in. Local businesses are likely to benefit for several reasons. First, consumers are actively making efforts to support small, local businesses as they have been hard hit by the pandemic. Moreover, vulnerabilities in the global supply chain have demonstrated that small businesses selling locally produced goods can be more dependable in certain situations. Naturally, businesses that have a strong online presence and offer delivery will have the advantage over businesses operating only a physical store.