Retail and the health crisis: an omnichannel transformation at full speed



Convenience stores and drives benefit from the food rush

First of all, local food stores experienced an 11% increase in traffic in March, which was accompanied by a €2 increase in the average basket.[1] The decree limiting travel and the desire of consumers to avoid crowds to limit their exposure to COVID-19 are refocusing shopping on local shops, which can provide essential needs in a short time.

If social distancing is somehow managed to be controlled in local shops, consumers' fears are not the same in the suburbs. They have chosen to favour the drive-through, which has experienced strong growth, leaving the already weakened hypermarket model a little further behind. According to Nielsen, sales of very large hypermarkets and formats of less than 7,500m² fell by 16% and 7% respectively in the second week of confinement. The drive is benefiting from this situation in the food sector but is also being progressively deployed by large non-food chains, penalised by the imposed closure of sales outlets.

In an article in Le Monde on 25 March, Vincent Chabault explains how the current situation will force the players to review their economic model. As essential purchases are one of the few reasons for going out of the house, trips to the shop result in "a quest for social ties", a theme that Vincent Chabault had already addressed in our previous article of 5 March. The rules of confinement are certainly contributing to the desertification of large out-of-town stores, to the benefit of local commerce, crafts and short circuits, which are more virtuous for the environment.

Click & collect and delivery: levers for business survival

Non-food retailing has had to adapt quickly to maintain some of its activity, despite the imposed closure of physical outlets. Omnichannel operation offers a response to this need, thanks in particular to click & collect and drive.

In order to allow independent retailers and craftsmen, whose opening is not authorised, to continue their activity while respecting health measures, the government encourages them to deploy "click & collect".[2] A press release of 21 April details the conditions of this approach. The click & collect "is part of the overall action deployed by the Government in favour of maintaining activity" by preserving the safety of all and accelerating the digitalization of retail.

For example, Darty has activated 30 in-store collection points allowing its customers to pick up their purchases made online. However, the offer is limited to certain categories of products considered essential.[3] Boulanger offers a contactless Click & Drive pick-up mode for cars or pedestrians, depending on the location of the shop. This option is available in 151 shops. In concrete terms, the customer identifies himself in a dedicated parking space and opens his car boot. They present their identity card to the Boulanger employee through the window and the parcel is then placed in the boot in compliance with the barrier gestures. This method has also been adopted by Leroy Merlin, JouéClub and the wine merchant Nicolas.[4]

The shop therefore now has an essentially logistical function. It can no longer simply act as a "showroom" before the online purchase act , but must deploy withdrawal solutions.

It can also offer home delivery solutions. Home delivery has been very successful during this period, saving consumers from having to travel. Stuart's "my medicine at home" offer, for example, has seen a fourfold increase in deliveries from pharmacies.[5] In order to meet this peak in demand, the major food companies have formed partnerships with specialists in collaborative last-mile delivery, such as Ubereats, Yper and Shopopop.

Digital finds its place in the shopping experience

In the absence of the service offered by a physical shop, digital alternatives can guide the e-consumer. They can learn about their shopping experiences by consulting forums, blogs, influencer videos or customer reviews. Online sales sites display pop-up conversations with virtual advisors. The answers, often based on artificial intelligence, allow the customer to be redirected to a telephone advisor.

Assistance platforms offer to support the e-consumer's experience, particularly when it comes to finding products that are difficult to obtain. Finally, as product explanations cannot be provided in-store, Darty has set up video assistance via the mobile application "mon bouton" to help its customers install their appliances.

This crisis has forced retailers to implement new omnichannel practices in a hurry. There is every reason to believe that consumers, forced to take health precautions and worried about promiscuity, will continue to choose these pick-up or delivery solutions after the confinement. Many of them have discovered these services and appreciate them.

The evolution of shops towards omnichannelity will therefore be a positive legacy of this historical context.
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