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RESPONDING TO THE COVID-19 PANDEMIC Four ways retailers and suppliers have responded with urgency and empathy to the evolving COVID-19 pandemic. RBy IGD Senior Retail Analyst Asia Charles Chan. etailers and suppliers in Asia, Farm’s Cold Storage supermarket chain the first region to face the in Singapore has allocated special COVID-19 outbreak, are being checkouts for the elderly, people with viewed around the world as a disabilities, mothers with infants and source of inspiration as they respond to safety and medical personnel. the challenges of the pandemic. In China, some small and medium- sized businesses have resumed operations. Employees of many large businesses returned to work at the beginning of March. Meeting new demand Retailers are quickly flexing and adapting their operations, including undertaking mass hiring from other industries, limiting numbers of items for shoppers and making stock visible to ease panic buying. For example, Alibaba’s Freshippo supermarket chain in China has been collaborating with restaurant chains that have closed due to the coronavirus outbreak, hiring their workers temporarily to make grocery deliveries. Walmart China issued a nationwide invitation in hiring new staff to work at its stores. It also launched a joint employment project with caterers and hotels to employ more than 9,000 part-time workers as drivers and warehouse workers. It has been necessary for many retailers to limit the number of products that shoppers can buy. For example, FamilyMart has asked that shoppers buy only one pack of face masks per shopper. Retailers have also worked hard to build shoppers’ resilience and avoid any panic buying situations. Initiatives in this space have included setting up stacks of toilet paper near store entrances, as well as on shelves in-store, providing reassurance that ample stock is available. FairPrice has also opened its warehouse to media, adding to shopper reassurance. Supporting staff, suppliers and consumers Retailers across Asia have a major role to play to ensure that all consumers can shop safely and easily. Many stores have been more crowded than usual, so Dairy Many retailers have implemented initiatives to effectively maintain social distancing. Hypermart is maintaining 1.5m distance between shoppers in-store by means of floor markers. Other services, including free deliveries of food and other goods for hospitals and older shoppers, have helped ensure that everyone can access the products they need. Retailers have been working out ways in which they can support their suppliers as well. To help alleviate the pressure on merchants renting spaces in its member stores, Walmart China reduced its management fees and rent by 50 per cent during the peak of the epidemic. Community and collaboration Initiatives in this area include retailers providing consumers with easy access to information and resources, donations to support those in need and further collaboration across the supply chain. Many retailers have used blogs and other digital services to offer tips for shoppers about how to build their immune system and stay healthy, and to provide free online access to health consultants. Across the supply chain, many Vietnamese retailers, including Big C and Saigon Co-op, have bought extra produce from farmers affected by closed borders with China, while logistics providers have pitched in with lower warehousing and delivery fees. In Hong Kong, shopping malls have joined a program launched by Deliveroo to help food and beverage businesses fulfil delivery and pick-up services, with the online food delivery company estimating that about 300 restaurants will benefit. Contact-free shopping Social distancing and contact-free shopping are likely to be in place for some time to come, with retailers introducing several different ways for shoppers to continue to buy what they need in a safe way. Some of these initiatives include contactless delivery, cashless shopping, connecting with shoppers via livestreaming and using drones and autonomous vehicles. A great example is China’s Sinopec starting to sell fresh vegetables at its petrol stations through its Easy Joy banner. Customers need not get out of their car or roll down the window, with staff putting fresh vegetables and meat directly into the boot of their vehicles. Since the spread of coronavirus in China, JD.com has been using robots and drones to deliver supplies and equipment to help reduce human-to- human contact during the outbreak. Tesco has also advised its shoppers to use the Scan & Shop app (launched in February 2020) for faster checkout and cashless shopping. It also encourages customers to use its online shopping app during this period. Continual change ahead As we follow developments in the retail industry across the globe, ideas are spreading quickly. Multinational retailers are implementing in new markets initiatives that have worked in other markets. However, businesses are having to operate extremely quickly, with local-level responses rolled out fast and lessons applied in other regions and markets where appropriate. Retailers and suppliers must prepare for continual change over an extended period as government and health advice coupled with shopper behaviour and operational challenges evolve in the weeks and months ahead. INDUSTRY INSIGHT About Charles Chan Charles Chan is a senior retail analyst at IGD, responsible for tracking the latest industry trends across Asia. He has vast FMCG research experience, delivering presentations and training to major companies and retailers within the sector. JUN, 2020 RETAIL WORLD 25