As the Covid-19 pandemic has spread across the planet, many governments worldwide have responded with Lockdowns to save lives. As you know, in the UK we have to stay at home and are only able to go out for food, health reasons and work that we can’t do from home. Non-food retailers have had to close their doors and we are all wondering how long this will last.
Where are we?
With so much uncertainty, it can feel like an extremely anxious time. It’s easy to get caught up in our thoughts and feelings about the virus, which can get in the way of dealing with what is actually happening and what we can do about it.
The first thing to acknowledge is that we are in the middle of a pandemic and, for now, we are not able to open our shop doors unless we sell essential items or food that can be taken away. This can mean that our usual revenue streams have disappeared or drastically reduced. Whilst it seems like business can’t carry on, the fact is that people are still spending money online. Shopify and Amazon have both reported sales growth and postal and companies are busier than ever. Alibaba boomed on the back of the SARS outbreak. Retail is still happening, just not in the way we are used to.
So, what can we do?
People are still having birthdays and celebrations and many are still buying and sending gifts to friends and loved ones. If you don’t currently sell online, now is the time to start looking into it. I’ve pulled together some useful blog posts to inspire our retailers:
This post on how retailers can get started selling online interviews two retailers who managed to do this in a low cost way that doesn’t involve expensive websites. Another on Ecommerce Tips for Retailers shows you how other retailers have reached their markets online. For background reading you may also like to read Opportunities and Obstacles for the Digital High Street.
You can learn how retailers can get started on Instagram and adapt to social selling online. I’ve written loads for retailers who are looking for social media tips to boost their sales, so do take a look at that link. If you are thinking about creating a website, I recommend Shopify as a fast and easy way to get started. As an example, take a look at our B2C website, Green Magpie, that we built ourselves within a couple of weeks and is relatively low cost to run.
If you are open for business it’s really important to communicate with your customers that you are open and that your shop is a safe to visit. For example, I like the way this Darts Farm Instagram Post created to reassure their customers.
As well as changing how you sell, some businesses are pivoting what they sell. Check out this story about German baker Tim Korteun, who started making toilet roll cakes when panic buying led to loo roll shortages. The humour and fun of it led to sales growing from 8 to 200 cakes a day. It also made a great story that has gone viral on the internet boosting their PR.
It’s important to stay connected to your community during the pandemic. I love seeing the different retailers that have filled their windows with rainbows to share their support of the brave British care workers in the NHS who are risking their lives to save ours. You can download NHS friendly posters from BrainboxCandy. Plus, you can join people across the UK as they applaud hospital workers from their front doors every Thursday at 8pm.
Remember not to leave your business premises unattended for more than 30 days as this can invalidate some insurance claims. Whilst you are in store, it can be a good opportunity to change your shop displays around in preparation for returning customers. One of our retailers found that reorganising their shop floor led to double digit growth in sales.
If it’s been a while, remember to take a look at your sales figures. What products usually sell fastest? Which lines make you the most profit? What’s not working and tying up vital cash? From there you can organise how you lay things out to boot sales of profitable and fast moving items. Plus you can allocate poor sellers for sales offers and give aways for loyal customers.
As our whole team have been furloughed, I’ve been checking into Blue Eyed Sun’s premises every day to stay on top of orders, book keeping, marketing prep and sorting and tidying. It’s been very useful to see my business from different perspectives. Jobs that I hadn’t done for long time, still have room for improvement. Perhaps you’ll find things in your business that you hadn’t noticed before too. I’ve also been touched by the number of retailers who have been calling in to pay their bills and share their stories with me.
Cut Business Spending
When there’s no money coming in, cutting overhead costs is essential. Review all of your utility suppliers and see if you can switch providers. For example, you can get cheaper and greener energy plus £50 cash-back with my Bulb referral link here.
Government support during the Covid-19 pandemic has been extensive. If you haven’t already done so, you can furlough your team using the Coronavirus Job Retention Scheme from the government to ensure they receive 80% of their current salary. They must not work during this time, but you are able to speak to them.
The government is also allowing delays in paying VAT bills until March 2021. You can also delay your July Self Assessment Tax payment too. Retailers affected by Covid-19 can get Business Rates Relief. The self-employed also have measures in place to help with lost profits. Plus Coronavirus Business Interruption Loans are available. If things are really bad for you or your employees people can get grants from charities like Turn2Us.
It’s worth taking a mortgage repayment holiday on your property for up to three months to help with cash flow. All major banks are offering these and can be as simple as filling in an online form.
After the Virus
It’s still not clear what the exit strategy is for the pandemic, but it’s safe to assume that we are going to live in a low-touch economy for a time going forward. One that is driven by new habits and regulations that we will all need to reassure our staff and customers that our business environments are clean, healthy and safe.
Events and large gatherings will be highly impacted. E-commerce, home deliveries and remote working will continue to grow. Travel may get more difficult and more people may ‘staycation’ for a while which might also affect who visits your store and what they want to buy. Unemployment and mental health challenges will almost certainly increase.
As people feel more isolated, pets and pet products will grow in popularity. If you rely on office trade in your shop, we may see more office workers continue to work for home. It’s worth considering marketing tie ins with the companies they work for in order to maintain contact with these valuable consumers.
With more unemployment we will see a boom in small businesses starting up that require all manner of products and services. With increased Zoom calls and less face-to-face time, what people wear and how they wear it may also shift. Accessories and products that appear in these calls could do really well.
It’s important to start from the situation as it is. Not worse, nor better. Then decide how to act powerfully from there to protect your business and offer it the best potential for survival and growth. I hope this post as give you some for food for thought about how you might be able to do that during the pandemic. If you found it useful, please feel free to share it.
The 7 Habits of Highly Effective Retailers
The current UK government Coronavirus guidelines
