COVID-19 And Its Impact On E-commerce - 3/30/20

From the Simplr studios in San Francisco, this is your daily briefing.  

Opening

This is Today in Five with Madison Huffman, for today, Monday, March 30th. Here are today’s headlines.

The COVID-19 pandemic has drastically affected brick-and-mortar retail, but what about e-commerce? Some retailers are relying on digital sales to make up for lagging brick-and-mortar performance, but data shows even e-commerce has slowed for companies.

Here are the latest headlines.

Joann Stores Opening Classrooms to Help May Stuff for Healthcare Workers

Joann Stores has launched an effort to make items for healthcare workers. The arts and crafts retailer announced it would be opening its classrooms to any who would want to help make essential items for healthcare workers, including facemasks and covers, gowns, and other items to donate to American hospitals. Participating locations will offer sewing machines, materials, and guidance to help customers safely make the items. Classroom occupancy will be limited to adhere to CDC recommended guidelines for social distancing and local restrictions.  

H&M Offers Supply Network to EU

Sweden’s H&M, the world’s second-largest fashion retailer, said on Sunday it would use its supply network to source personal protective equipment for hospitals in the European Union to help curb the spread of the coronavirus. H&M said it had offered the EU its help and was now trying to understand which needs were most urgent while working out what its supply chain could deliver. In an email, an H&M spokesperson said,  “The EU has asked us to share our purchasing operations and logistics capabilities in order to source supplies, but in this urgent initial phase, we will donate the supplies.”

Allbirds Offering Free Shoes to Healthcare Workers

Sustainable footwear company, Allbirds, is joining other retailers in finding ways to support healthcare workers during the coronavirus pandemic. The San Francisco-based company announced it is supporting healthcare workers in the United States by offering free shoes. In a tweet, the company said, quote, “We are donating shoes to anyone who works in healthcare and is on the front lines of fighting COVID-19 right now.” The company also added, “To our US healthcare community – we want to thank you for being on the front lines and helping to keep our communities healthy.”  

COVID-19 And Its Impact On E-commerce

COVID-19 continues to impact retail around the globe. Many stores that are considered unessential are being forced to close to curb the spread of the coronavirus. While physical retail stores are closing, many businesses have turned to e-commerce to make up for the lack of physical foot traffic.  

Some retailers are even waiving minimum order requirements to help e-commerce efforts along, like offering free shipping or free returns for a limited time. Yet, other retailers like Victoria’s Secret, TJMaxx, and Marshalls, have also halted their digital sales. Most site the need to protect workers in those operations and the goal of slowing the spread of the disease. Retailers that are continuing with their e-commerce efforts have sent assuring messages to customers detailing the efforts and steps they’re taking to sanitize distribution centers and extra measures to keep employees and consumers safe.  

Pure-play retailers may have thought they’d escape the consequences of rapidly changing consumer behavior by running few or no physical retail spaces, but performance agency Within found that their revenue fell 63 percent on March 18 compared to its pre-virus benchmark period. Conversion rates were also at an all-time low at negative 35 percent versus pre-COVID-19.  

The mixed responses and latest data show that even e-commerce isn’t untouched by the current circumstances as retailers scramble to drastically shift their strategies and operations.  

Closing

Most leaders feel overwhelmed when the unexpected impacts the customer experience. With Simplr customer service, you’ll always have on-demand staffing to answer every customer question–so you can be in control and stay focused on growing the business. Visit simplr.ai to learn more.

Thanks for listening to this latest episode of Today In Five. Until next time.