AGA Digital Magazine

◀ Continued from page 37

“Although the question of when more people will

return to physical shopping trips remains up in the air, it will involve technology that makes them feel safe.”

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wider assortment and personalization. However, it also puts productivity under pressure, resulting in the need for more expensive logistics systems to handle higher inventory needed for increased customer demand, it was noted. Here, the question is not only whether companies are wiling to make these and other changes, but to stick with them once the Covid crisis in the rear view. This was one of the conclusions in a report from PwC global strategy leaders Blair Sheppard and Kevin Burrowes which stated: “With the arrival of vaccines that hold out the possibility of a resumption of many activities, companies will actually face their biggest test – can they make fundamental change decisions in an accelerated timeline. Are they able to apply, in a post-virus environment, the agile and crisply executed managerial processes they embraced when survival was at risk?

Emerging from the pandemic also means developing ways to avoid potential disruptions in the supply chain and discouraging panic buying. As such, growth in product sales will continue after the pandemic, but not at as rapid a pace, according to McKinsey. This includes an estimated 9 percent increase in purchase of household supplies; nine percent in over-the-counter drugs and seven percent in groceries, compared with a 15 percent increase prior to the pandemic. Any slowdown in growth can be traced to increased use of digital or low-contact channels. For example, eight percent of consumers intend to continue getting restaurant deliveries, and 11 percent will maintain grocery delivery, bringing to 51 percent the total percentage of consumers using the latter service. Along these lines, nine percent more consumers are expected to use BOPIS (buy-online-pickup-in-store) after Covid. This rises to 12 percent for curbside pickup. As online capabilities become more ubiquitous, retailers have to explore new ways to differentiate themselves from competitors and prove their value, according to McKinsey. This includes delivery speed,

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Companies also have to think about unintended consequences, they said. “Some meat packers ignored worker safety to maintain profits and that choice came back to harm them in fines and reputation. ■

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